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).

DSCR Direct

Investor loans. Direct pricing.

All programs Apply Now

DSCR Loan vs Hard Money Loan

DSCR and hard money loans both skip personal income docs, but they exist for different parts of the deal cycle. Hard money is a short-term bridge for acquisition + rehab. DSCR is the long-term hold financing afterward. The BRRRR strategy uses both in sequence.

DSCR Loan (Long-Term)

30-year hold financing on a stabilized rental.

Best for: Long-term rental hold after the property is rented and stabilized.

Pros

+30-year fixed term
+Rate locked for life of loan
+Cash-out at refinance

Cons

−Property must be stabilized (rented or rentable)
−Rate higher than conventional but lower than hard money

Hard Money / Bridge Loan

12–18 month interest-only loan for acquisition + rehab.

Best for: Buying distressed property to renovate and resell or refinance.

Pros

+Closes in 7–14 days
+Funds rehab costs
+No income docs, no DTI
+Up to 90% of purchase + 100% of rehab

Cons

−Interest-only for short term — must refinance or sell within 12–18 months
−Rate 9–13% (vs DSCR 7–9%)
−Origination 2–4 points

Field	DSCR Loan (Long-Term)	Hard Money / Bridge Loan
Min FICO	660+	600+ (some programs no minimum)
LTV (purchase)	Up to 80%	Up to 90% of price + 100% of rehab
LTV (cash-out)	Up to 75%	Cash-out via refinance, not original loan
Income docs	DSCR (rent)	No income docs
Term	30 years	12–18 months interest-only
Time to close	21–30 days	7–14 days

Which one should you choose?

DSCR Loan (Long-Term): choose DSCR for stabilized rentals you intend to hold long-term, or as the takeout refinance after a hard money loan.
Hard Money / Bridge Loan: choose hard money for distressed acquisitions, fix-and-flips, or properties that need rehab before they can be rented.
BRRRR investors use both: hard money for the buy and rehab, then DSCR for the long-term refinance.

Frequently asked questions

How fast can a hard money loan close?

7–14 days is typical for a clean file. Title issues are usually the bottleneck, not loan underwriting.

Can I avoid the rate spike of hard money by going directly to DSCR?

Only if the property is rent-ready. Most distressed acquisitions cannot pass a DSCR appraisal because they require rehab to reach rentable condition.

What is a fix-to-rent program?

Fix-to-rent bundles a hard money loan with a pre-approved DSCR takeout — one underwriting cycle, two closings, designed specifically for BRRRR.

Not sure which fits your scenario?

Tell us the deal — we'll come back with the right product and current pricing.

Start an application Get instant pricing

14 min strategy guide

The BRRRR Strategy: Complete Guide for Real Estate Investors

11 min strategy guide

Fix and Flip: A Practical Getting-Started Guide

Fix & Flip

Short-term fix and flip loans for real estate investors. Up to 90% of purchase + 100% of rehab. ARV-based underwriting. Fast close.

Fix-to-Rent / BRRRR

Bundled short-term rehab loan plus pre-approved DSCR refinance for BRRRR investors. One lender, one underwriting pass, two closings.

Ground-Up Construction

Construction financing for investor builders. New SFR, 2-4 unit, and small multifamily ground-up. Up to 85% of total cost, 70–75% of completed value.

Fix & Flip vs Ground-Up

Fix and flip loan or ground-up construction loan for your next project? Comparison of LTV, term, draw process, and which fits your strategy.

DSCR vs Conventional

DSCR vs conventional investment property loans compared head-to-head. Documentation, rates, LTV, speed, and which to choose for your scenario.