DSCR Loan Requirements and Answers for Investors (2026)

These are the requirements as they actually get underwritten — not the marketing version. We arrange DSCR loans daily through a panel of wholesale lenders, and we have borrowed on these programs ourselves.

The Core Requirements

• DSCR ratio: most programs want the property rent to cover the full payment (a ratio of 1.0+), with the best terms starting around 1.20–1.25. Sub-1.0 programs exist with adjustments.
• Down payment: typically 20–25% on purchases. More equity generally improves terms.
• Credit score: programs commonly start in the 620–660 range; meaningfully better pricing at 700+ and again at 740+.
• Reserves: commonly 3–6 months of the full payment in liquid funds after closing.
• Property type: non-owner-occupied 1–4 unit residential is the core box; many lenders extend to condos, townhomes, short-term rentals, and 5–8 unit buildings.

What DSCR Loans Do Not Require

No employment verification, no tax returns, no DTI calculation, no cap on your total financed properties, and no requirement to close in your personal name — LLC vesting is standard. This is why self-employed investors and anyone scaling past a few doors ends up here.

Requirements That Vary by Lender

Minimum loan amounts, rural property appetite, prepayment penalty structures, first-time investor rules, gift funds, and how STR income is treated all differ lender to lender. One lender overlay is another lender yes — which is the entire argument for going through a broker who shops the panel instead of a single direct lender box.

Documents You Will Actually Provide

Photo ID, entity documents if closing in an LLC, two months of bank statements for down payment and reserves, the purchase contract, insurance quote, and lease agreements if the property is occupied. That is the stack — it is a fraction of a conventional file.

Frequently Asked Questions