DSCR Loans

DSCR stands for Debt Service Coverage Ratio. It divides a rental property’s gross monthly income by its total monthly debt obligation. A 1.0 means rent exactly covers the payment. A 1.25 means rent exceeds it by 25%. Lenders use it to determine whether a property can carry its own financing.

A DSCR of 1.25+ gets the best pricing, meaning the property generates 25% more rent than the total mortgage payment. Most lenders require a minimum of 0.75 with 1.0+ preferred. A 1.25+ ratio paired with a 720+ credit score qualifies for the lowest rates and 20% minimum down.

You need a 620+ credit score (660+ for best rates), 20-25% down, a DSCR of 0.75+ with 1.0+ preferred, and a non-owner-occupied investment property. Loan amounts range from $100K to $3M with no personal income verification required.

Most DSCR loans require 20-25% down. Borrowers with 720+ credit and a DSCR of 1.25+ may qualify at 20%. Properties with a sub-1.0 DSCR typically need 25-30% down to offset the negative cash flow.

DSCR loans require 20% down minimum. Zero-down isn’t available for this program, but 20% is lower than what many portfolio lenders require for investor financing.

You need a DSCR of 1.0+ (0.75 minimum), 620+ credit, 20% down, a non-owner-occupied investment property, and an appraisal confirming value and market rent. SRK CAPITAL evaluates all five factors before submitting your application.

The lender divides gross monthly rent by total monthly debt (PITIA). A property collecting $5,000/month with a $4,000 PITIA payment has a DSCR of 1.25. The property qualifies on its own cash flow, so no personal income documents are needed.

Yes. DSCR loans don’t require tax returns, W-2s, or prior landlord experience. The property’s projected rental income qualifies the loan, so a first-time investor with a 620+ credit score and 20% down qualifies the same way a veteran investor does.

Four steps: find a property with a projected DSCR of 1.0+, get pre-qualified with credit, down payment, and property details, wait for the appraisal to confirm value and market rent, then close in 21-30 days.

No federal limit. Conventional loans cap you at 10 Fannie Mae-backed mortgages, but DSCR lenders don’t. Most impose no cap as long as each property meets the minimum ratio and you maintain 6-12 months of reserves per property.

Yes. DSCR loans allow property to be titled in an LLC, trust, or corporation with a personal guarantee. This separates personal assets from property liability and is a major reason investors pick DSCR over conventional. Most lenders charge a 0.125-0.25% rate premium for entity vesting.

Yes. DSCR loans work for Airbnb and VRBO properties. Income is verified using AirDNA data or a short-term rental appraisal addendum, and the property must hit a minimum DSCR of 0.75-1.0 depending on the program. The property must be in a jurisdiction that permits short-term rentals.

The minimum is 20% (80% max LTV). Borrowers with a 1.25+ DSCR and 720+ credit typically qualify at 20%. Properties with a sub-1.0 DSCR usually need 25-30% down.

Yes. DSCR loans report to credit bureaus like any other mortgage since every DSCR loan requires a personal guarantee. The tradeline shows payment amount, balance, and history. On-time payments build your credit profile.

No. DSCR loans are Non-QM (non-qualified mortgage) products, not conventional Fannie Mae or Freddie Mac loans. Conventional requires income verification, tax returns, and DTI under 45-50%. DSCR loans are portfolio products with no conforming limits or agency guidelines.

Traditional banks rarely offer DSCR loans because they fall outside Fannie Mae and Freddie Mac guidelines. DSCR financing comes from mortgage brokers, private lenders, and non-QM specialists. SRK CAPITAL works with 150+ non-QM lenders, giving investors multiple rate options through one application.

You’ll need a completed application, property address and purchase contract, credit authorization, and bank statements showing down payment plus 6-12 months of PITI reserves. No tax returns or pay stubs. Most DSCR loans close in 21-30 days.

That’s exactly what DSCR loans are built for. Single-family homes, duplexes, triplexes, fourplexes, and condos all qualify as non-owner-occupied rentals. Qualification is based entirely on expected rental income, not personal income.

You can still get financing, but expect 25-30% down and a rate premium of roughly 1.0%+. Some lenders offer No Ratio programs that waive the DSCR requirement at the highest available rates. A sub-1.0 DSCR means rent doesn’t fully cover the payment.

No. DSCR loans require 20% down minimum. Without personal income as a backstop, lenders need meaningful equity to offset risk. Gift funds or cross-collateralization against existing property can substitute for part of the down payment with some lenders.

Most DSCR lenders don’t set a hard limit, unlike conventional financing which caps you at 10. Each property must qualify on its own DSCR ratio, and you need 6-12 months of reserves per property. SRK CAPITAL works with lenders supporting unlimited property counts.