How DSCR qualifying works
A DSCR loan qualifies on the property’s debt-service-coverage ratio — rent divided by the payment. A ratio around 1.0+ often works, with no tax returns or DTI. Expect 20–25% down. Ideal for self-employed investors and those scaling.
Because DSCR ignores personal income, it’s perfect for investors whose returns are complex or who’ve hit conventional’s property-count limit. The property’s cash flow carries the qualification.
Building a portfolio
DSCR and portfolio loans let investors keep buying past conventional limits. A stronger DSCR earns better pricing, and many lenders allow closing in an LLC for asset protection. We’ll structure the financing around your growth plan.
How to calculate your DSCR
DSCR — debt-service-coverage ratio — is simply the property’s monthly rent divided by its full monthly payment (principal, interest, taxes, insurance, and any HOA). A ratio of 1.0 means the rent exactly covers the payment; 1.25 means rent is 25% above it. Most DSCR lenders want to see roughly 1.0 or higher, and a stronger ratio earns better pricing. For example, $3,000 in market rent against a $2,400 payment is a DSCR of 1.25 — comfortable. Knowing this number before you make an offer tells you instantly whether a deal will finance.
Typical DSCR loan terms and down payments
DSCR loans usually require 20–25% down, with rates a bit above conventional in exchange for qualifying on the property instead of your personal income. There are no tax returns, W-2s, or DTI calculations — the file centers on the rent, your credit, and reserves. Many lenders allow you to close in an LLC for liability protection, and there’s no cap on how many you can hold, which is why DSCR is the workhorse of serious investors. We shop multiple DSCR lenders to find the best combination of rate, LTV, and prepay terms for your strategy.
Frequently asked questions
What DSCR do I need?
Many lenders want ~1.0 or higher (rent covers the payment); stronger ratios earn better pricing.
What credit score do I need for a DSCR loan?
Many DSCR lenders look for around 640–680+, with better credit unlocking lower rates and higher LTV. We’ll match you to a lender that fits your profile.
Can I close a DSCR loan in an LLC?
Yes — most DSCR lenders allow closing in an LLC, which many investors prefer for asset protection. We’ll structure it correctly.
Do I need to show my income?
No — DSCR qualifies on the property’s cash flow, not personal income or tax returns.
Can I close in an LLC?
Many DSCR lenders allow it — useful for asset protection.
Save Financial, Inc. — NMLS #377740, DRE #01875766. Equal Housing Opportunity. Figures are illustrative for 2026 and not an offer of credit or a guarantee of rates or approval.