Funded·$195,000·Pensacola, FL
Single-family investment property

DSCR / Rental Loans

Qualify on Rental Income. No Tax Returns Required.

Debt Service Coverage Ratio loans let you qualify based on the property's rental income — not your personal income. Perfect for investors scaling a portfolio.

What is a DSCR Loan?

DSCR = Monthly Rent ÷ Monthly PITI (Principal, Interest, Taxes, Insurance). If your DSCR is 1.0 or above, the property's rental income covers the mortgage. Most lenders target 1.0–1.25+. We work with lenders that go as low as 0.75 DSCR.

No tax returns or W-2s
Close in an LLC or entity
Up to 80% LTV
1-4 units, condos, townhomes
Portfolio & blanket loans
STR income accepted

Example Scenario

Property Value$350,000
Loan Amount (75% LTV)$262,500
Monthly Rent$2,800
Monthly PITI$2,200
DSCR1.27

This deal works. Green light.

2026 Rate Intelligence

DSCR Rates by Credit Score

Your credit score is the single biggest lever on your rate. Here's how lenders tier it.

740+
6.75% – 7.50%
720–739
7.00% – 7.75%
700–719
7.25% – 8.00%
660–699
7.75% – 8.50%
620–659
8.25% – 9.25%

Based on 75% LTV, 1.25+ DSCR, 30-year fixed. Rates vary by lender and deal structure.

DSCR Programs & Thresholds

Sweet Spot

1.25+ DSCR

Best-in-class pricing. Full access to every program type. This is where you want to be.

Standard

1.0 – 1.24 DSCR

Qualifies at most lenders. Slight rate premium of 12.5-37.5 bps above 1.25+ tier.

Limited

Sub-1.0 (0.75+)

Property doesn't fully cover PITI. Requires 25-30% down, 700+ credit, 9-12 mo reserves.

Specialized

No-Ratio

DSCR not calculated. Qualification on credit (720+), LTV (75% max), and reserves alone.

Reserve Requirements

3 mo

740+ credit, 1.25+ DSCR, ≤75% LTV

6 mo

Standard for most DSCR programs

9 mo

660-699 credit or 80%+ LTV

12 mo

Sub-1.0, no-ratio, or weak combos

Reserves = liquid assets after closing (checking, savings, investments at 70-80%, retirement at 60-70%)

DSCR Calculator

Run your numbers instantly. Get a full AI analysis and scenario-based pre-approval.

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DSCR Calculator

AI-Powered

Instant Property Valuation Pre-Check

When you submit a deal, our AI appraisal engine automatically runs a conservative, lender-grade valuation analysis. You get a value range, confidence score, and risk flags — before you even talk to a lender.

As-Is & Stabilized Value Ranges

Low / mid / high estimates using income, sales comparison, and cost approaches.

Confidence Score & Risk Flags

Know where your deal stands before submission. Conservative, lender-first output.

Credit Committee Notes

Internal-grade analysis notes you can use when packaging the deal for lenders.

Submit a Deal for Analysis

As-Is Value Range

$425,000– $485,000
72% confidence

Key Metrics

NOI Annual

$38,400

Implied Cap Rate

8.4%

Price / SqFt

$212

Methods Used

Income + Comps

Risk Flags (2)

Limited recent comps within 0.5 mi • Vacancy data from 2024 Q3

Frequently Asked Questions

What DSCR do I need?

Most lenders require 1.0+. Some go as low as 0.75 with a higher down payment or rate adjustment. Our AI Scenario Desk tells you exactly where you stand.

Can I use short-term rental income?

Yes. Several of our lenders accept Airbnb and VRBO income. We normalize it using our STR Signal tool to calculate a conservative DSCR.

How fast can I close?

Most DSCR loans close in 14–21 days from clear-to-close. The full process is typically 3–4 weeks from application to funding.

Do I need reserves?

Typically 6–12 months of PITI in reserves. Some lenders accept cross-collateral or gift funds. We'll outline exactly what you need.

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