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DSCR Loans
Qualify based on property cash flow, not personal income
Debt Service Coverage Ratio (DSCR) loans let real estate investors qualify based on the property's rental income rather than personal income or employment. Ideal for investors building a portfolio without traditional income documentation.
Find DSCR Lenders →Loan Range
$100K – $5M
Typical Rate
7.0% - 9.5%
Down Payment
20-25%
Term
30 years
Closing Time
2-4 weeks
🎯 Best For
- • Real estate investors
- • Portfolio builders
- • Self-employed borrowers
- • Foreign nationals
✅ Advantages
- ✓ No personal income verification
- ✓ Unlimited properties
- ✓ Fast closing
- ✓ LLC/entity vesting allowed
⚠️ Considerations
- • Higher rates than conventional
- • Larger down payment
- • Prepayment penalties common
- • Minimum DSCR ratio required (typically 1.0-1.25)
DSCR Loan Requirements
- ✓ Minimum credit score: 620-680
- ✓ DSCR ratio ≥ 1.0
- ✓ Down payment: 20-25%
- ✓ Property must be investment (not owner-occupied)
DSCR Loans FAQ
What is a good DSCR ratio? ▼
Most lenders want a DSCR of at least 1.0, meaning the property's income covers the debt payments. A DSCR of 1.25+ gets you better rates and terms.
Can I get a DSCR loan with no money down? ▼
No. DSCR loans typically require 20-25% down. Some lenders may accept cross-collateralization to reduce cash needed.
Do DSCR loans show on my credit report? ▼
It depends on the lender. Some report to credit bureaus, others don't. Ask your lender before closing.
Can I use a DSCR loan for a short-term rental? ▼
Yes. Many DSCR lenders accept Airbnb/VRBO income. They typically use projected rental income from platforms like AirDNA or actual booking history.
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