DSCR loans
DSCR loans for rental property: up to 85% LTV, qualified on the rent.
DSCR rental loans: long-term financing for 1–4 unit rentals, condos, townhomes and short-term rentals, with a separate path for 5+ unit and mixed-use property — purchase, refinance or cash-out. No tax returns, no W-2s, no personal debt-to-income. Rates from 6.875% on the best tier, and properties with a DSCR as low as 0.75x can still qualify.
How DSCR is calculated
DSCR = gross monthly rent ÷ monthly PITIA (principal, interest, property taxes, insurance and HOA dues). A property renting for $2,600 with a $2,000 payment has a DSCR of 1.30. New to this? Start with what is a DSCR loan.
At 1.0 or above, the standard leverage matrix below applies and the strongest files can reach 85% on a purchase. Below 1.0 — down to 0.75x — the property can still qualify with a stronger credit score and lower leverage.
Who qualifies
- Borrower: an individual, LLC, corporation or limited partnership. US citizens and permanent residents. Up to two individual borrowers on a file.
- Credit: three scores pulled, middle score used. No bankruptcy, foreclosure or deed-in-lieu in the last three years.
- Reserves: six months of the full payment (PITIA) after closing. On a purchase that is on top of cash to close; on a cash-out, proceeds can count.
- Experienced investors: have owned and managed investment property for at least 12 months.
- First-time investors: have purchased a property before, 700+ FICO, own a primary residence, single-unit subject property (SFR, condo, townhome) with DSCR above 1.0.
- Non-owner-occupied only, no family occupancy. Full appraisal with a rent schedule. Properties leased or vacant but rent-ready, up to 5 acres, not listed for sale in the last 30 days.
Program snapshot
- Max LTV, purchase
- 85%*
- Max LTV, rate-and-term
- 80%
- Max LTV, cash-out
- 75%
- Rates from
- 6.875%
- Min FICO
- 640 (680 for most programs)
- Min DSCR
- 0.75x
- Max loan, 1–4 units
- $3.5M
- Loan from
- $100k
- Prepayment options
- 0 to 5 years
- Structures
- 30-year fixed, ARM, interest-only
The 85% LTV DSCR purchase program
Five points more leverage than the standard 80%, for purchases only, on the strongest files. The trade is a higher rate — about 0.75% over the 80% option on the same credit — and a tighter box. Everything below has to be true; there are no exceptions on this program. The 85% LTV DSCR loan page runs the numbers on a $400,000 purchase.
- 740+ credit (middle of three scores)
- DSCR 1.10 or higher — 1.00 in California, 1.25 on short-term rentals
- Loan $250,000 to $2,000,000
- Purchase only. No rate-and-term, no cash-out
- 30-year fixed, 5/6 ARM or 7/6 ARM. No interest-only
- Six months of reserves plus cash to close, verified
- Seller credit up to 3% of the price
- Short-term rentals: experienced investors only
Standard leverage matrix — 1–4 unit rentals, DSCR 1.0 or higher
The table shows the wider credit box: 640 minimum credit and loans to $3.5M. Below 640, a 30-year fixed rental loan still goes to 75% on a purchase, and to 50% with no minimum credit score. Depending on which lending partner the file goes to, a 700+ borrower can also take 80% on a rate-and-term refinance (loans from $200k, property value to $1M), and a 680–699 borrower 75% on purchase, rate-and-term and cash-out alike. We price the file both ways and tell you which is better.
| Min FICO / max loan | Purchase | Rate-and-term | Cash-out |
|---|---|---|---|
| 700 · $1.5M | 80% | 75% | 75% |
| 700 · $2.0M | 75% | 70% | 70% |
| 700 · $3.5M | 70% | 65% | 65% |
| 660 · $1.0M | 75% | 75% | 70% |
| 660 · $1.5M | 75% | 70% | 70% |
| 660 · $2.5M | 70% | 65% | 65% |
| 660 · $3.0M | 65% | — | — |
| 640 · $1.0M | 75% | 70% | — |
| 640 · $1.5M | 65% | 65% | — |
| 640 · $2.0M | 65% | — | — |
| 640 · $3.0M | 60% | — | — |
DSCR below 1.0 (down to 0.75x)
When the rent does not fully cover the payment, the loan still works with more credit and less leverage. Long-term rentals only; short-term rentals need a DSCR of 1.00 or higher. With 720+ credit, a DSCR down to 0.80 qualifies for 70% on a purchase and 65% on a refinance or cash-out (minimum loan $200k). The wider table below goes to 0.75x from a 650 score.
| Min FICO / max loan | Purchase | Rate-and-term | Cash-out |
|---|---|---|---|
| 700 · $1.5M | 75% | 70% | 70% |
| 700 · $2.0M | 70% | 65% | 65% |
| 700 · $2.5M | 65% | — | — |
| 700 · $3.0M | 60% | — | — |
| 680 · $1.5M | 70% | 65% | — |
| 680 · $2.0M | 65% | 60% | — |
| 680 · $3.0M | 60% | — | — |
| 650 · $1.0M | 65% | — | — |
Short-term rentals
Airbnb, VRBO and other nightly rentals qualify on their short-term rental income — twelve months of booking history, or a projection from the appraisal’s short-term rent analysis — rather than on a long-term lease that does not exist. Minimum DSCR 1.00.
- 700+ credit: up to 80% purchase, 80% rate-and-term, 75% cash-out
- 680–699: 70% across the board
- 740+, experienced investors: up to 85% on a purchase with DSCR 1.25 or higher
- Rate add-on 0.25% over long-term rental pricing; not available on interest-only
- A property with both nightly and long-term units is treated as long-term when half or more of the rent determination is long-term
Full terms, excluded markets and what to send for a quote are on the short-term rental loan page.
5+ units and mixed-use
Stabilized apartment buildings and mixed-use property qualify with a 700 FICO and DSCR above 1.0: up to 75% on purchases to $1.5M and 70% to $2M. Minimum loan $400,000. Full rules on the multifamily and mixed-use page.
Property types
- 1–4 unit single-family and small multifamily, with up to two ADUs
- Townhomes and condos (condos from 500 sq ft; other property from 750 sq ft)
- Condition C1–C4, no deferred maintenance; minimum value $125,000
- 3–4 units add about 0.125% to the rate; condos about 0.20%
Prepayment penalty options
| Option | Schedule |
|---|---|
| 5-year | 5 / 5 / 5 / 5 / 5% or 5 / 4 / 3 / 2 / 1% |
| 3-year | 3 / 3 / 3% or 3 / 2 / 1% |
| 1-year | 3% |
| None | No penalty, about 1.00% added to the rate |
A longer penalty buys a lower rate. If you might sell or refinance early, the shorter option can cost less overall — here is how to compare them.
State rules. No prepayment penalty is permitted in Kansas, Maryland, New Mexico or Ohio. Illinois, Pennsylvania (no penalty on loans under $329,411), Rhode Island, New Jersey and Mississippi limit the schedule.
Rate structure and loan terms
- 30-year term, no balloon. 30-year fixed, 5/6 ARM, 7/6 ARM, or interest-only (DSCR 1.0+, long-term rentals only)
- 6.875% is the best tier: 760+ credit, low leverage and strong rent coverage on a 5/6 ARM. No‑points options are available; paying points can buy the rate down. A 30-year fixed adds about 0.15%; interest-only about 0.25%; cash‑out 0.25–0.375%
- Loans from $100,000 (DSCR above 1.0) or $200,000 (DSCR 1.0 or below) to $2M as standard, larger by approval; $3.5M on the wider box
- Typical close about 30 days from the appraisal order. Credit is valid for 90 days
- Current pricing for every program is on the rates page
What the lender charges
We publish this because most sites do not. On the primary 1–4 unit program the lender charges an underwriting fee of about $1,995 and origination of 0% to 3% — zero if you take the rate as priced, or 0.5 to 3 points to buy it down (each half-point is worth roughly 0.125% in rate). Loans under $125,000 carry a $1,500 small-loan fee. Fees differ by lending partner and are itemised on the lender’s disclosure before you commit.
We charge you nothing. No application fee, no processing fee, no upfront fee of any kind. We are paid by the lender when the loan closes.
DSCR loan questions
What is the minimum DSCR to qualify?
0.75x on long-term rentals. Between 0.75 and 1.0 you need at least a 650 credit score and the loan-to-value drops; with 720+ credit a DSCR of 0.80 qualifies for 70% on a purchase. At 1.0 or higher the standard matrix up to 80% applies, and the 85% purchase program needs 1.10 (1.25 on a short-term rental).
Do DSCR loans require tax returns?
No. The loan is qualified on the property’s rent against its payment, not your personal income. Expect a credit check, an appraisal with a rent schedule, bank statements for six months of reserves, and entity documents if you are buying in an LLC.
Can a first-time investor get a DSCR loan?
Yes, if you have purchased a property before, have a 700+ credit score, own your primary residence, and the rental is a single unit with DSCR above 1.0. The 85% short-term rental purchase is for experienced investors only.
What credit score do I need for a DSCR loan?
640 at the minimum, with lower leverage: up to 75% on a purchase to $1 million. 680 opens most programs, 700 reaches 80% on a purchase, and the 85% purchase program needs 740. The middle of three scores is used.
How much down payment does a DSCR loan need?
20% on a purchase with 700+ credit, 25% at 680–699, and as little as 15% with 740+ credit and a DSCR of 1.10 or higher under the 85% purchase program. Closing costs and six months of reserves are on top.
How much can I cash out?
Up to 75% of value with a 700+ score (loans from $200k, property value to $1M), stepping down with loan size and credit. After six months of ownership the loan is sized on appraised value (twelve months with some lending partners); before that, on what you paid plus documented improvements. Cash-out adds roughly 0.25–0.375% to the rate. Worked examples are on the DSCR cash-out refinance page.
Can I get 85% LTV on a DSCR loan?
On a purchase, yes: 740+ credit, DSCR 1.10 or higher (1.25 for a short-term rental), loan between $250,000 and $2,000,000, six months of reserves plus cash to close, no interest-only, and the property is not in one of the excluded markets listed above. Expect about 0.75% more in rate than the 80% option.
Do you finance Airbnb and other short-term rentals?
Yes. The loan is qualified on short-term rental income — twelve months of booking history or a projection from the appraisal — with a minimum DSCR of 1.00. Up to 80% with 700+ credit, 70% at 680–699, and up to 85% on a purchase at 740+ with DSCR 1.25 for experienced investors. The rate runs about 0.25% above long-term rental pricing. See the short-term rental page.
How fast does a DSCR loan close?
About 30 days from the appraisal order on a typical file. The appraisal and the title work set the pace; a complete file with reserves documented up front is what keeps it to 30. Credit is valid for 90 days, so there is no rush to pull it before the deal is real.
Easy Lending USA is not a lender, a bank, or a mortgage broker. We introduce real estate investors to independent private lenders, who make every credit decision. Business-purpose loans only, to real estate investors, secured by non-owner-occupied property. Every figure on this page is indicative, subject to underwriting, and not a commitment to lend. No upfront fees of any kind.
Will the rent qualify? Check it in the free DSCR calculator: your ratio, PITIA, the rent needed for 1.00x and 1.25x, the largest loan that fits and the prepayment penalty cost. Refinancing out of a hard money loan? Use the BRRRR calculator.