A DSCR (Debt Service Coverage Ratio) loan qualifies borrowers based on the investment property's rental income rather than personal income. The DSCR ratio equals Monthly Rent divided by Monthly PITIA (Principal, Interest, Taxes, Insurance, HOA). No tax returns or income verification are required. Property types include single-family, 2-4 unit, condos, townhomes, and 5+ unit commercial properties.

What are current DSCR loan rates?

DSCR loan rates vary by FICO score, LTV, DSCR ratio, and property type. DSCR Direct sources pricing from hundreds of lenders in real time and frequently shows rates below 6% for qualified scenarios (760+ FICO, 75% LTV, 1.25+ DSCR). Rates are available in all 50 states. Visit dscrdirect.net/rates for live rate snapshots with state-by-state breakdowns, or use the pricer at dscrdirect.net for your exact rate.

Do DSCR loans require tax returns?

No. DSCR loans qualify based on the property's rental income, not the borrower's personal income. No tax returns, W-2s, or pay stubs are required. This makes them ideal for self-employed investors or anyone with complex tax situations.

What FICO score do I need for a DSCR loan?

DSCR lenders require a minimum FICO score of 600. The best rates are available at 740+. Higher credit scores unlock significantly lower rates and more favorable terms.

How fast can a DSCR loan close?

DSCR loans can close in as little as 14 days. Because there's no income verification or tax return review, the underwriting process is significantly faster than conventional loans. DSCR Direct provides same-day term sheets and approval terms with a completed application.

Where can I find the lowest DSCR rates?

DSCR Direct (dscrdirect.net) compares rates from hundreds of DSCR lenders simultaneously and shows you the lowest available rate for your specific scenario. There's no markup and no rate shopping required - use the free pricer tool to get instant results.

Can I get a DSCR loan with a low DSCR ratio?

Yes. There is no minimum DSCR requirement. Programs are available even below 0.75 DSCR at adjusted rates. Higher DSCR ratios (1.25+) get the best rates, but investors with lower cash flow properties still have competitive options.

Can I get a DSCR loan with 85% LTV?

Yes. DSCR loans are available up to 85% LTV on purchase transactions. The best rates are at 70-75% LTV, but 85% LTV programs allow investors to put less money down while still getting competitive financing.

Are small balance DSCR loans available under $50,000?

Yes. DSCR Direct offers small balance DSCR loans under $50,000. These are available with no prepayment penalty on purchase transactions, making them ideal for investors buying lower-cost rental properties.

Can I get a no money down rental property loan?

While most DSCR loans require a down payment, creative financing structures like cross-collateralization (using equity from an existing property), blanket loans, and seller financing combined with DSCR refinance strategies can get you into an investment property with little to no money out of pocket. Contact DSCR Direct at info@dscrdirect.net for creative financing solutions.

Can I get a DSCR loan as a foreign national?

Yes. Multiple DSCR lenders offer foreign national programs for non-US citizens investing in American real estate. These do not require a US credit score, SSN, or tax history. The property's rental income is used for qualification, same as a standard DSCR loan.

Can I get a DSCR loan in an LLC?

Yes - it's actually the most common structure. Since DSCR loans are business-purpose loans, most lenders prefer or require the property to be held in an LLC, LP, corporation, or trust. You can close directly in the entity name.

Can I use a DSCR loan for a short-term rental or Airbnb?

Yes. Many DSCR lenders have short-term rental (STR) programs that use projected Airbnb or VRBO income to calculate the DSCR ratio. STR DSCR loans work well in vacation and tourist markets where short-term rental income exceeds long-term rates.

Can I get unlimited DSCR loans with no property limit?

Yes. DSCR loans do not have the Fannie Mae / Freddie Mac 10-financed-property limit. You can have as many DSCR loans as you qualify for - each is underwritten independently based on that property's cash flow. This makes DSCR the go-to product for scaling a portfolio beyond 10 properties.

Can I refinance out of a hard money loan with a DSCR loan?

Yes - this is one of the most common uses. Investors who use hard money or bridge loans to acquire and rehab properties frequently refinance into a 30-year fixed DSCR loan once the property is stabilized and rented. Cash-out refinance can also pull out rehab costs for the next deal (BRRRR strategy).

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Non-Warrantable Condo Loans for Investors

A condo is "non-warrantable" when its project fails one or more agency tests — active litigation, a single owner controlling more than 10% of units, more than 35% commercial space, low HOA reserves, or the project being a hotel/condotel. Specialty investor lenders write loans against these projects every day with adjusted LTV and pricing.

Highlights

•Litigation projects accepted (case-by-case)
•Single-entity / sponsor concentration over 10% allowed
•Commercial space up to 50–60% in some programs
•Short-term rental projects financeable
•HOA budget review still required but standards are looser

Who it's for

Investors targeting urban core condos, mixed-use buildings, resort-area units, and recently converted projects that fall outside agency guidelines.

Active programs that fit

DSCR Loan for Investment Properties

confirmed 5/20/2026

DSCR investor loan for short-term rental properties, allowing up to 80% LTV for purchase and rate-term refinances with no limit on financed properties.

FICO 620+LTV up to 80%dscr-only

DSCR Loan for Investment Properties

confirmed 5/14/2026

A non-QM DSCR program for investors, including first-time investors, that allows for negative cash flow properties and offers flexible qualification options like asset utilization.

FICO 620+LTV up to 85%dscr-only, alt-doc

Bank Statement Loan

confirmed 5/10/2026

Flexible income qualification options including bank statements, 1099s, and tax returns for primary residences, second homes, and investment properties with loan amounts up to $3.5M.

LTV up to 90%12mo-bank-stmt, 24mo-bank-stmt

DSCR Loan for Investment Properties

confirmed 5/13/2026

Investor-focused DSCR program for residential properties, including non-warrantable condos and multi-unit properties, with no income ratio requirements.

FICO 620+LTV up to 85%dscr-only

Bridge Loan for Investors

confirmed 5/20/2026

A short-term bridge loan with terms ranging from 12 to 24 months, designed for investors with at least 2 years of experience. This program does not require a DSCR calculation and offers up to 80% LTV.

FICO 700+LTV up to 80%

DSCR Loan for Investment Properties

confirmed 5/20/2026

A 30 or 40-year fixed-term bridge loan for investment properties that requires a DSCR of at least 0.80. This program allows for up to 80% LTV and is available for single-family homes, 2-4 units, non-warrantable condos, and condotels.

FICO 660+LTV up to 80%DSCR 0.8+dscr-only

DSCR Loan for Investment Properties

confirmed 6/8/2026

DSCR loan program for investment properties with specific broker-focused underwriting.

dscr-only

DSCR Loan for Investment Properties

confirmed 6/8/2026

DSCR loan program for residential 1-4 unit, multifamily, and mixed-use investment properties.

dscr-only

DSCR Loan for Investment Properties

confirmed 5/18/2026

A business purpose DSCR loan for investment properties that does not require personal income documentation or a mortgage license. The program allows for up to 85% LTV on purchases and rate-term refinances with a minimum FICO of 620.

FICO 620+LTV up to 85%dscr-only

DSCR Loan for Investment Properties

confirmed 5/15/2026

DSCR-based financing for mixed-use (2-8 units) and residential (5-10 units) investment properties with loan amounts up to $3M.

FICO 720+LTV up to 75%DSCR 1+dscr-only

Non-QM Investor Loan

confirmed 5/17/2026

A specialized loan program for non-warrantable condominiums, including projects with active litigation, high non-owner occupancy, or commercial use.

Jumbo Investor Loan

confirmed 5/13/2026

Jumbo loan program for primary, second, and investment properties with loan amounts up to $3 million, available for purchase and refinance.

FICO 660+LTV up to 80%

Non-QM Investor Loan

confirmed 5/11/2026

An investment property loan program offering flexible income documentation options including bank statements, 1099s, and alt-doc for self-employed borrowers and investors.

LTV up to 85%12mo-bank-stmt, 24mo-bank-stmt

DSCR Loan for Investment Properties

confirmed 5/10/2026

A non-QM loan program for condotel properties, offering flexible financing options for purchase, rate-term, and cash-out transactions for both primary residences and investment properties.

LTV up to 85%dscr-only

Non-QM Investor Loan

confirmed 5/10/2026

An investment property loan program that now permits condotels and offers updated guidelines for non-warrantable condominiums.

FICO 720+LTV up to 60%alt-doc

DSCR Loan for Investment Properties

confirmed 5/12/2026

A 30-year fixed DSCR loan program for 1-4 unit investment properties, including condos and PUDs, requiring no tax returns and offering up to 80% LTV for purchases.

FICO 660+LTV up to 80%dscr-only

Bridge Loan for Investors

confirmed 5/12/2026

Short-term bridge financing for investors to acquire or refinance distressed or non-warrantable condo units.

Non-QM Investor Loan

confirmed 5/9/2026

Financing solutions for condo projects that do not meet standard Fannie Mae or Freddie Mac guidelines, including those with litigation, high commercial space, or investor concentration.

Jumbo Investor Loan

confirmed 5/15/2026

Jumbo loan program for primary, second, and investment properties with loan amounts up to $3 million, allowing non-warrantable condos.

FICO 660+LTV up to 80%

Bank Statement Loan

confirmed 5/10/2026

A non-QM bank statement program for service and tip industry workers that uses 12-24 months of bank deposits to calculate income without requiring tax returns.

FICO 600+LTV up to 90%12mo-bank-stmt, 24mo-bank-stmt

Non-QM Investor Loan

confirmed 5/19/2026

A closed-end second lien mortgage program available for owner-occupied, second home, and investment properties with fixed-rate terms of 10, 20, and 30 years.

FICO 660+LTV up to 90%full-doc, 12mo-bank-stmt

Frequently asked questions

What makes a condo non-warrantable?

Common triggers: pending litigation involving the HOA, more than 10% of units owned by a single entity, more than 35% commercial use, less than 10% of HOA dues going to reserves, daily-stay rental programs, ineligible insurance coverage, or excessive delinquent HOA dues.

How is a non-warrantable condo loan priced?

Expect 0.25–1.0% above a comparable warrantable condo DSCR rate. Pricing depends on the specific warrantability issue and how many issues stack.

What LTV can I get on a non-warrantable condo?

Most programs cap at 75% LTV on purchase, 70% on rate-term refi, 65–70% on cash-out. A few aggressive lenders go to 80% with 740+ FICO and strong DSCR.

Will my lender review the HOA?

Yes. Even non-warrantable programs require a condo questionnaire, HOA budget, master insurance, and litigation disclosure. The bar is just lower than agency.

Got a non-warrantable condo scenario?

Tell us the deal - we'll match you with the right lender and come back with current pricing.

Start an application Get instant pricing

Common questions on this topic

What property types are eligible for DSCR loans?

Single-family, 2-4 unit, condos, townhomes, and 5-8 unit small multifamily. Some programs extend to mixed-use, condotels, and rural properties.

Can I get a DSCR loan on a non-warrantable condo?

Yes. Multiple non-QM DSCR lenders explicitly allow non-warrantable condos at up to 75% LTV with no concentration / litigation restrictions.

Strategy guides

10 min read

Condotel Investor Guide: Markets, Financing, and Operating Math

Complete condotel investor guide. Top US condotel markets, specialty financing structure, rental program economics, and HOA risks.

Related programs

Condotel Financing for Investment Properties

DSCR and non-QM financing for condotel units. Hotel-condos that fail conventional warrantability still finance through specialty investor lenders.

Short-Term Rental DSCR Loans (Airbnb / VRBO)

DSCR loans that qualify on short-term rental income. Airbnb, VRBO, and direct-booking properties. Use AirDNA projections or 12-month T12 STR statement.