A DSCR loan qualifies on the property's rent, not your income — ideal for investors. Below: the basics, the ratio math, costs, and investor mechanics. For exact thresholds see Requirements; to compute your ratio, use the calculator.
The basics
What is a DSCR loan?
A mortgage for investment property that qualifies on the property's rent, not your personal income. See the overview.
Who is it for?
Real estate investors — individuals, LLCs, portfolio builders, first-time and foreign investors. See Eligibility.
Do I need personal income docs?
No — no tax returns, W-2s, pay stubs, or personal DTI. The rent qualifies the loan.
Can I live in the property?
No — DSCR is investment-only. For a primary residence, look at bank statement or conventional.
Is DSCR the same as "no-doc"?
Roughly, for income — but you still document the property, rent, credit, assets, and reserves.
Ratio & qualifying
How is DSCR calculated?
Gross monthly rent ÷ PITIA (principal, interest, taxes, insurance, HOA). 1.0 = rent equals payment.
What's the minimum DSCR?
Usually 1.0; 1.25+ for best pricing. Sub-1.0 and no-ratio exist with more down and a higher rate.
What if my DSCR is below 1.0?
Still financeable on many programs — expect a larger down payment and higher rate, or use a no-ratio option.
Where does the rent figure come from?
The lease, or for a vacant unit the appraiser's market-rent schedule (Form 1007).
Can I raise my DSCR?
Yes — a larger down payment lowers PITIA, which raises the ratio into a better tier. Test it in the calculator.
Cost, credit & down payment
What credit score do I need?
~620–640 floor, 680 for ARM/IO, 720+ for best pricing.
How much down?
20–25% typically; 15% for strong files. More down raises your DSCR.
What are DSCR rates in 2026?
Above conventional, varying by DSCR, credit, LTV, and property type. See Rates.
Any mortgage insurance?
None at any LTV.
Reserves?
3–6 months of PITIA (more for larger loans or lower DSCR).
Investor mechanics
Can I close in an LLC?
Yes — LLC vesting is common for liability protection.
Is there a property-count limit?
No — unlike conventional's ~10-property cap, DSCR has none.
Are there prepayment penalties?
Often — usually step-down. You can reduce/buy them out for a higher rate.
Short-term rentals?
Often eligible — many programs use market or documented STR income.
Cash-out refinance?
Yes — purchase, rate-and-term, and cash-out are all available.
How fast can it close?
Quickly — no income underwriting; sometimes a couple of weeks, some lenders in days.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.