The practical path to a rental loan that qualifies on the property’s rent — not your W-2. What the lender checks, what you’ll need, and how it closes in days.
A DSCR loan is the cleanest way to finance a rental when your tax returns don’t tell the whole story. Instead of qualifying you on personal income, it qualifies the property on its rent — so self-employed investors, LLCs, and anyone scaling past conventional limits can keep growing. This guide walks through exactly how to get a DSCR loan, what the lender checks, and how to put your file in the strongest position.
For the full mechanics of the product, see our DSCR loan program; below is the practical path to getting approved.
Step 1: Confirm the Property Cash-Flows
DSCR stands for Debt Service Coverage Ratio — the rent measured against the full mortgage payment (principal, interest, taxes, insurance, and any dues). Before you apply, check whether the rent covers the payment. A ratio of 1.0 breaks even and 1.25 gives a healthy cushion, but we have no minimum DSCR and fund deals below 1.0 and even below 0.75 with adjusted terms. Run your numbers with our DSCR loan program first.
Step 2: Gather the Light Documentation
This is where a DSCR loan saves you weeks. There are no tax returns, no W-2s, no pay stubs, and no personal debt-to-income calculation. You’ll provide the property details, the lease or a market-rent estimate, your entity documents if you’re closing in an LLC, and proof of a few months of reserves. That’s most of it.
Step 3: Know Your Down Payment and Credit Position
Most DSCR purchases need as little as 15% down on a qualifying deal, putting you at up to 85% loan-to-value; on a refinance we look at equivalent equity. There’s no minimum credit score — we pull a hard credit report, and a stronger score earns a better rate and higher leverage, while a lower score is simply priced in. The property carries the deal, not a single number on your report.
Step 4: Get Your Quote and Term Sheet
Tell the lender about the property and the rent, and you’ll get a real, scenario-specific quote — the loan amount, rate, and down payment based on the DSCR, your credit, and the property type. Most DSCR loans are 30-year fixed, with interest-only and adjustable options available. Ask about any prepayment penalty up front so there are no surprises.
Step 5: Close in Your LLC and Hold
Because the decision rides on the property’s income, closings are fast — often within 7 to 10 business days once your file is complete. You can close in an LLC, keeping the loan off your personal credit and your borrowing capacity free for the next deal.
What You'll Need to Get Approved
What You'll Need to Get Approved
DSCR Loans in a Bigger Strategy
A DSCR loan is the “hold” stage of most investing playbooks. Investors often acquire and renovate with short-term money, then refinance into a DSCR loan and pull capital back out through a cash-out refinance — the BRRRR loop. For straightforward buy-and-hold, see our rental loan program, and for vacation rentals, our Airbnb and short-term rental financing qualifies on projected nightly income.
Frequently Asked Questions
There’s no minimum credit score. We pull a hard credit report, but a low score doesn’t disqualify you — it’s offset with a higher rate, lower LTV, or more reserves. Stronger credit simply earns better terms.
No. A DSCR loan qualifies on the property’s rent rather than your personal income, so there are no tax returns, W-2s, or debt-to-income calculations. You’ll provide the property details, the lease or market rent, and entity documents.
We have no minimum DSCR. A ratio of 1.25 or higher earns the best pricing, but we routinely fund below 1.0 and even below 0.75 by adjusting the LTV, rate, and reserves.
As little as 15% down on a qualifying purchase (up to 85% LTV), or the equivalent equity on a refinance. Most purchases land around 20–25% down depending on the ratio and your credit.
Often within 7 to 10 business days once your file is complete. We underwrite in-house, so there’s no waiting on an outside committee — the appraisal and title work are the main timing items.