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.
Financing a 2–4 unit or 5+ unit rental building? See our dedicated multifamily DSCR loans page for unit-specific LTV, DSCR thresholds, and rate ranges.
Example Scenario
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.
Based on 75% LTV, 1.25+ DSCR, 30-year fixed. Rates vary by lender and deal structure.
DSCR Programs & Thresholds
1.25+ DSCR
Best-in-class pricing. Full access to every program type. This is where you want to be.
1.0 – 1.24 DSCR
Qualifies at most lenders. Slight rate premium of 12.5-37.5 bps above 1.25+ tier.
Sub-1.0 (0.75+)
Property doesn't fully cover PITI. Requires 25-30% down, 700+ credit, 9-12 mo reserves.
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%)
Common questions.
Do DSCR loans require tax returns?
No. DSCR loans qualify on the property's rental income (the debt-service coverage ratio), not your personal income — no tax returns, W-2s, or DTI.
What DSCR do I need to qualify?
1.0–1.25+ is the comfortable range; some lenders go as low as 0.75 with a higher down payment or rate adjustment. 818 also offers no-ratio options for strong profiles — our AI Scenario Desk tells you exactly where you stand.
What is the maximum LTV on a DSCR loan?
Up to 80% on purchase and rate-and-term refinances; cash-out is typically to 75%.
Can I close a DSCR loan in an LLC?
Yes — most investors close in an entity, and it does not change pricing.
Can I use short-term rental income?
Yes. Our DSCR programs accept Airbnb and VRBO income. We normalize it using our STR Signal tool to calculate a conservative DSCR.
How fast can a DSCR loan 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. Cross-collateral or gift funds can work on some programs. We'll outline exactly what you need.
DSCR Calculator
Run your numbers instantly. Get a full AI analysis and scenario-based pre-approval.
DSCR Calculator
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 underwriting even starts.
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.
As-Is Value Range
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