DSCR Loans

Debt Service Coverage Ratio (DSCR) loans are designed for real estate investors who want to qualify based on the property's rental income rather than personal income. Perfect for building your rental portfolio without the hassle of traditional income documentation.

What is DSCR?

The Debt Service Coverage Ratio (DSCR) is a financial metric that measures a property's ability to cover its debt obligations with its rental income. It's calculated by dividing the property's monthly rental income by its monthly debt payment (PITIA: Principal, Interest, Taxes, Insurance, and Association fees).

DSCR = Monthly Rental Income ÷ Monthly PITIA

Example: $2,500 rent ÷ $2,000 PITIA = 1.25 DSCR

A DSCR above 1.0 means the property generates more income than needed to cover the debt. A DSCR below 1.0 means the property doesn't fully cover the debt payment, but many of our programs still accept these scenarios with appropriate pricing adjustments.

Key Features & Benefits

No personal income verification required
Qualify based on property cash flow
Up to 80% LTV on purchases and cash-out refinances
Loan amounts from $150K to $3M+
30-year fixed rate options available
Interest-only payment options
FICO scores as low as 680 accepted
DSCR ratios below 1.0 considered
1-4 unit residential properties
Nationwide lending (all 50 states)

Available Programs

Program A

Max LTV
80% Purchase / 75% Cash Out
Min FICO
700
Min DSCR
1.00
Highlights:
  • •Standard program
  • •Best rates
  • •Most flexible terms

Program C

Max LTV
80% Purchase / 75% Cash Out
Min FICO
680
Min DSCR
0.75
Highlights:
  • •Lower FICO accepted
  • •Below 1.0 DSCR
  • •Expanded guidelines

Program D

Max LTV
80% Purchase / 80% Cash Out
Min FICO
700
Min DSCR
1.00
Highlights:
  • •Highest cash-out LTV
  • •Competitive rates
  • •Fast closings

Ready to Calculate Your DSCR Loan?

Use our interactive DSCR calculator to see rates and payments based on your property's details, or start your application today.

DSCR CalculatorStart Application