1) Confirm the property cash-flows (DSCR). 2) Check credit vs the tiers (640 floor, 740+ best). 3) Plan down payment (20–25%+) & reserves. 4) Choose vesting (LLC or personal). 5) Strengthen the ratio if thin. 6) Pre-approve & shop the file. 7) Match structure to your hold & close. See Requirements.
On this page
The 7 steps to qualify
Confirm the property cash-flows
Rent ÷ full PITIA. 1.0+ qualifies; 1.25+ best pricing. This decides everything. Calculator →
Check credit against the tiers
640 purchase floor, 660 refi/cash-out, 700 first-time investor, 680 interest-only; 740+ best. How tiers price →
Plan down payment & reserves
20–25% down (25–35% prices best), plus 3–6 months of PITIA reserves. More down also lifts your DSCR.
Choose your vesting
LLC for liability protection (standard for portfolios) or personal. Decide early. Eligibility →
Strengthen the ratio if needed
Bigger down, interest-only, or a higher-rent property lifts the DSCR into a better tier.
Get pre-approved & shop the file
Pricing and junk fees vary widely — have your file shopped across investors. Pre-approval guide →
Match structure to your hold & close
Pick the prepay structure for your hold, lock, and close — often in a couple of weeks.
Lifting a thin ratio or weak file — the routing table
| If your weak spot is… | Route around it by… |
|---|---|
| DSCR just below 1.0 | Add down payment or use interest-only to lower PITIA |
| DSCR well below 1.0 | Use a no-ratio program (30–35% down) or blend rental income + assets |
| Credit below your target tier | Pay down balances, fix errors, or add down payment to offset |
| High LTV pricing | Bring 25–35% down to drop into a better tier |
| Reserves short | Count retirement/investment accounts, or reduce loan size |
| First-time investor overlay | Add reserves/down, or use a lender that doesn't penalize new investors |
| Property won't cash-flow at all | Renegotiate price, raise rent to market, or pick a different property |
DSCR qualifying FAQs
First step to qualify?
Confirm the property cash-flows — rent ÷ full PITIA. 1.0+ qualifies, 1.25+ best pricing.
What credit score?
640 purchase floor, 660 refi/cash-out, 700 first-time, 680 IO; 740+ best.
How much down?
20–25% (25–35% prices best), plus 3–6 months of PITIA reserves.
How do I raise a thin DSCR?
More down, interest-only, or a higher-rent property — a 0.95 often clears 1.0.
What if my file is weak?
Route around it — raise credit, add down, use IO or no-ratio, or blend rent with assets.
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.