Question 1

What is a DSCR loan?

Accepted Answer

A DSCR (Debt Service Coverage Ratio) loan is a business-purpose rental property loan that qualifies borrowers based on the property's rental income vs its debt payment, not the borrower's personal income or tax returns. It's the standard financing vehicle for real estate investors scaling beyond a handful of rentals.

Question 2

What DSCR ratio do I need to qualify?

Accepted Answer

Most lenders prefer 1.0+ (rent covers PITIA). Many accept 0.75-0.99 with stronger credit or lower LTV. A handful of programs offer no DSCR minimum (no-ratio DSCR). Run our calculator to see exactly where you land.

Question 3

What credit score do I need?

Accepted Answer

Absolute minimum is 620 mid-FICO with a limited lender pool. 680+ opens most lenders. 720+ and 740+ tiers unlock better rates and higher LTV. Above 760 gets rate discounts at some lenders.

Question 4

What is the maximum LTV on a DSCR loan?

Accepted Answer

80% LTV on purchase is the ceiling at most DSCR lenders (and only with 720+ credit and 1.0+ DSCR). Cash-out refinance typically caps at 70-75%. LTV drops 5-10% for sub-1.0 DSCR, 2-4 unit, condos, and STR properties.

Question 5

Can I get a DSCR loan through an LLC?

Accepted Answer

Yes — LLC vesting is the standard for DSCR loans because they're classified as business-purpose. Single-member LLCs, multi-member LLCs, and many S-Corps are accepted. Personal guarantees are almost always required from 20-25%+ beneficial owners.

Question 6

Do DSCR loans have prepayment penalties?

Accepted Answer

Almost always. 5/4/3/2/1 step-down is most common. A few states (Georgia, Hawaii, Massachusetts, New York, Rhode Island, Pennsylvania) prohibit PPP on 1-4 unit investment property. You can buy down or eliminate PPP at most lenders — typically adds 0.25-0.75% to your rate.

Question 7

How long does closing take?

Accepted Answer

Typical DSCR close is 30-45 days from signed purchase contract. Faster is possible (20-25 days) with a fully packaged file and clean title. Foreign-national and portfolio/blanket loans run 45-60+ days.

Question 8

Can foreign nationals get DSCR loans?

Accepted Answer

Yes — several lenders specialize in foreign-national DSCR loans. LTV typically capped at 65-70%, rate premium 0.5-1.5%, reserves 6-12 months. Specific programs: HomeAbroad, OfferMarket, Griffin Funding (limited), Angel Oak, Defy Mortgage, A&D Mortgage.

Question 9

Can I do a BRRRR with a DSCR loan?

Accepted Answer

Yes — BRRRR's 'Refinance' step is almost always a DSCR loan. Key variable: lender seasoning requirement (3, 6, or 12 months from acquisition). A few lenders (Griffin, some Kiavi programs) offer 3-month seasoning; most require 6 months.

Question 10

How are DSCR loan rates different from conventional?

Accepted Answer

DSCR rates typically run 0.75-1.5% higher than conventional investment property rates for the same borrower profile. In exchange: no personal income documentation, no DTI hit, unlimited financed properties, LLC vesting standard, scalable for investors.

Question 11

Is DSCR Authority a lender?

Accepted Answer

No. We are an independent editorial resource and loan-matching service. We don't originate loans. We shop every major DSCR lender in America and match you with the 2-3 whose programs best fit your scenario. Our compensation comes from lenders, not borrowers.

Question 12

How do I get matched?

Accepted Answer

Use the form on /get-matched or our homepage. We verify your scenario, then contact 2-3 partner lenders whose programs match your DSCR, credit, LTV, state, and property type. Top 3 offers typically delivered within one business hour.

DSCR loan questions, answered.

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