DSCR loan questions, answered.

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. Start with our What Is a DSCR Loan guide for the full picture.

Most DSCR purchases require 20–25% down. Twenty percent (80% LTV) is available at 740+ FICO with 1.0+ DSCR on standard SFR. Weaker credit or STR/condo overlays push to 25–35%. See down payment and LTV and our investment property loans hub.

As of May 2026, a strong file (740+ FICO, 75% LTV, 1.25+ DSCR) should target 6.375%–6.875% on a 30-year fixed. Average files cluster near 6.875%–7.25%. Check live DSCR rates — pricing moves weekly.

Our weekly tables anchor 720 FICO / 75% LTV / 1.10 DSCR near 7.00% on 30-year fixed. Top tier starts around 6.375%. These are market baselines — use Get Matched for a lockable quote.

No single lender wins every deal. Filter by state, min DSCR/FICO, STR or foreign-national specialty, then shop three quotes. Our best DSCR lenders comparison is alphabetical and methodology-driven — not pay-to-play rankings.

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.

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. See our credit score tiers guide for pricing bands.

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. Details in our down payment and LTV guide.

A no-ratio DSCR loan skips the DSCR calculation entirely — the lender does not require rent to cover the mortgage. In exchange: 680+ FICO, 70% max LTV, 12 months reserves, and higher rates (+37.5 to +75 bps). See DSCR loan requirements for the full checklist.

No. DSCR loans do not use personal income documentation — no 1040s, W-2s, pay stubs, or P&L. Lenders underwrite property rent against PITIA instead of borrower income and DTI. See our document checklist for what they actually ask for.

2–6 months of PITIA is typical on standard files. Cash-out refinances often require 6 months. Loans above $1.5M can require 9–12 months. Reserves must be seasoned 30–60 days. Full breakdown in our reserve requirements guide.

Yes, but the lender pool narrows sharply. Expect 70–75% max LTV, 1.10+ DSCR minimums, 6–12 months reserves, and rates in the 7.25%–8.375% range. Use the qualification estimator to see your tier before you apply.

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, and scalable for investors. Compare side-by-side with our DSCR vs conventional calculator.

As of May 2026, 30-year fixed DSCR rates for a well-qualified borrower (740+ FICO, 75% LTV, 1.25+ DSCR) range from approximately 6.25% to 7.875%. Check the live rates page — pricing moves daily.

DSCR loans are non-QM products sold into private-label securitizations with no agency guarantee, no income documentation, and investor-only collateral. The premium over conventional is typically 100–150 bps. Our rates explainer walks through the full pricing stack.

LLPA stands for Loan Level Price Adjustment — add-ons to the base rate based on FICO below 740, LTV above 65%, DSCR below 1.25, cash-out purpose, 2–4 unit property, STR income, and non-warrantable condos. LLPAs stack. See the LLPA grid in our rates explainer.

Almost always. 5/4/3/2/1 step-down is most common. A few states 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. Model your exit with the prepayment penalty analyzer.

Yes — most lenders offer a no-PPP option in exchange for a higher rate (+0.25–0.75%). For borrowers planning a sale or refinance within 24 months, the no-PPP buydown usually beats eating a 3–5% PPP. Full playbook in our prepayment penalties guide.

Six states meaningfully restrict or prohibit PPPs on 1–4 unit investment property: Georgia, Hawaii, Massachusetts, New York, Rhode Island, and Pennsylvania. Texas also prohibits PPP on 1–4 unit investment loans. Confirm with your lender — rules vary by property state and borrower residence.

One point equals 1% of the loan amount paid at closing. Paying 1 point typically buys the rate down ~0.25%. Breakeven on paying points is typically 4–6 years. See our points and buydown strategy guide for the math.

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. See our LLC structure guide.

Almost always, yes — from each member owning 20–25% or more of the borrowing entity. The guarantee makes the loan recourse to the individual guarantor even when the note is in the LLC's name. Our personal guarantee guide covers negotiation and release triggers.

Holding company structures (Wyoming parent + property-state LLCs) are widely accepted. Series LLCs are accepted by some lenders but rejected by many — always confirm before you apply. Compare structures in our holding company and series LLC guides.

All 50 states plus DC. We match you with lenders licensed and actively lending in your property's state. Some states have unique rules — see your state guide for specifics on PPP, foreclosure, rent control, and insurance.

Yes. Every national DSCR lender funds in most or all states, though overlays vary. Florida, Texas, Georgia, Arizona, and California are among the highest-volume DSCR markets. Start with the relevant state page for local rules and typical terms.

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. See our foreign national investor profile and lender comparison for program options.

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. Week-by-week breakdown in our process timeline guide.

Credit authorization, photo ID, 2 months bank statements, entity documents (for LLC closings), lease or Form 1007, insurance quote, purchase contract (on purchases), and HUD/title from original purchase (on refis). No tax returns. Full list in our document checklist and Before You Apply checklist.

Yes — BRRRR's refinance step is almost always a DSCR loan. Key variable: lender seasoning requirement (3, 6, or 12 months from acquisition). Model your refi timing with the BRRRR modeler and refinance timing optimizer.

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. Read how we evaluate DSCR lenders for our methodology.

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.

No. Our initial matching uses only the details you share — property value, estimated DSCR, FICO, state, and loan purpose. No hard credit pull happens until you choose a lender and formally apply.