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Loan program

DSCR Rental Loan

Qualify on the property's cash flow — no tax returns, no DTI.

Rate range

7.25% – 9.00%

Max LTV / LTC

80% purchase / 75% cash-out

Term

30-yr fixed, 5/6 ARM, 40-yr I/O

30-year investor mortgage for stabilized rentals. Close in an LLC. Scale beyond conventional limits.

Best for

  • Buy-and-hold single-family and 2–4 unit rentals
  • Investors past conventional's 10-property cap
  • Self-employed borrowers with heavy write-offs
  • LLC borrowers who don't want to move title

Eligibility

  • 660+ FICO (720+ for best pricing)
  • Property produces DSCR ≥ 1.00 (1.25+ for best pricing)
  • 6 months PITI in reserves post-close
  • 1–4 unit residential, condo, townhome, or PUD

Documents needed

  • ID + credit auth
  • 2 months bank statements (for reserves)
  • Purchase contract or refi loan payoff
  • Insurance binder or quote
  • Executed lease or appraiser's market rent (1007)
  • LLC docs if closing in entity

Pros

  • No tax returns, W-2s, or DTI
  • Close in LLC — protects personal name
  • Unlimited number of financed properties
  • 21–35 day close with a tight file

Considerations

  • Rate ~0.75–1.5% above conventional
  • Prepay penalty 3–5 years (buyable at ~0.25–0.5% rate cost)
  • Not for primary residences
  • Rate priced off DSCR tier — under 1.00 usually declined

The DSCR loan is the workhorse of the modern rental investor. It replaces the personal-income conversation with a pure cash-flow test: if the property earns 1.00–1.25x its mortgage payment, you qualify.

When DSCR wins

  • You have 4+ rentals and don't want another W-2/tax-return marathon.
  • You want to close in an LLC.
  • You're self-employed with strong deals but low reported income.
  • You need speed — DSCR closes in 3 weeks with a good file.

When to skip DSCR

  • The property doesn't cash flow at current rates. No amount of loan structuring fixes negative NOI.
  • You qualify comfortably for conventional and want the best rate — take the conventional.
  • Primary residence — DSCR is business-purpose only.

The pricing tiers

Rate is set by four dials: LTV, FICO, DSCR, and prepay. Best pricing:

  • 75% LTV
  • 720+ FICO
  • 1.25+ DSCR
  • 5-year prepay

Every dial you loosen costs you 25–75 bps.

Common questions

Can I get a DSCR loan on a short-term rental?

Yes — DSCR-STR programs qualify on projected AirDNA revenue or a 12-month STR income history. Rates ~0.25–0.5% higher than long-term DSCR.

What's the minimum loan size?

Typically $75k–100k. Some programs go to $55k with rate adjustments.

Can I close in a brand-new LLC?

Yes. Most DSCR lenders accept LLCs formed the same week as closing, though a few prefer 6-month-old entities.

How long is the process?

21–35 days from application to close with a clean file. Rush closes possible in 14 days.

Ranges shown are educational. Actual pricing and terms depend on your credit, the property, and current market conditions. Nothing on this page is an offer of credit.