DSCR loan requirements

Minimums start as low as 600 on select programs. Many programs start between 620 and 680, and first-time investor programs often start around 680. Pricing and maximum leverage generally improve at 700 and above. Exact minimums depend on the program, the loan-to-value and the loan amount. A lower score can mean a lower maximum LTV, a higher rate or more reserves. See the full DSCR loan requirements.

Across our lender network, a DSCR purchase commonly needs 20% to 25% down. Select programs go up to 85% loan-to-value on purchases for strong files, which means 15% down. First-time investors are commonly limited to about 80% LTV (20% down). Short-term rentals, condos, 5 to 8 unit properties, lower credit scores, foreign nationals and ratios below 1.0 can each push the required down payment higher. Cash-out refinances usually allow less leverage than purchases. Your file is matched to the program that fits.

It depends on the program and the purpose. Purchases commonly go to 75% or 80% LTV, and select programs go to 85% for strong credit and a DSCR of 1.0 or higher. Cash-out refinances are usually lower, often 65% to 75%, and up to 80% on select programs. First-time investors are commonly capped near 80%, ratios below 1.0 near 70% to 75%, foreign nationals near 70% to 75% and 5 to 8 unit properties near 75% on a purchase.

Most DSCR programs start at about $100,000, and some start at $150,000 or $250,000, so very small balances can have fewer choices. Maximums commonly run to $2 million or $3 million, with higher limits on select programs and for stronger files. First-time investor and lower-ratio files are often capped lower than experienced-investor files.

It depends on the program. A few select programs ask for no reserves, many ask for about 3 to 6 months of PITIA after closing, and some ask for 12 months or more on first-time investor, foreign national, large loan or low-ratio files. Some programs let you count cash-out proceeds or reserves on your other financed properties. Reserves are one of the main levers a lender uses on a riskier file, so a bigger cushion can open more options.

No. There are no tax returns, W-2s, pay stubs or income verification on any DSCR program we offer. Personal income is not part of the underwriting, so there is no debt-to-income calculation and no employment verification. You will still provide a credit report, proof of funds for the down payment and reserves, identification, and rental documentation such as a lease or an appraiser's rent schedule. If the borrower is an LLC, entity documents are also needed.

No. There is no income verification of any kind on a DSCR loan: no tax returns, W-2s, pay stubs, bank statement income analysis or employment verification. The loan is underwritten on the property's rent, your credit, your assets for the down payment and reserves, and the property itself. You sign a business-purpose certification because the loan is for investment property.

Common eligible property types include single-family homes, townhomes, 2 to 4 unit properties and many warrantable condos. Select programs also finance 5 to 8 unit residential properties, non-warrantable condos and short-term rentals. The property must be an investment property that you do not occupy as a primary residence. Rural, unique and very small properties may be limited to fewer programs. See 5 to 8 unit DSCR loans.

Yes. Across our lender network, select programs accept first-time investors with no prior rental history. These files are commonly capped at about 80% LTV, usually want a credit score starting around 680, a DSCR of 1.0 or higher and extra reserves. Some programs ask that you have owned a home for 12 months, and a limited number of programs consider applicants who have never owned a home. There are no tax returns, W-2s or pay stubs. See first-time investor DSCR loans. Not a commitment to lend.

No. DSCR loans are business-purpose loans for investment property. You cannot use one to buy or refinance a home you live in. If you plan to live in the property, ask about conventional, FHA, VA or other owner-occupied programs instead.