Everything you need to know about qualifying for a DSCR loan.
Minimum DSCR Ratios by Lender
| Lender Type | Minimum DSCR | Best For |
|---|
| Premium Lenders | 1.25+ | Best rates |
| Standard Lenders | 1.00 - 1.24 | Most borrowers |
| Flexible Lenders | 0.75 - 0.99 | Lower cash flow |
| No-Ratio Lenders | Any | Strong borrowers |
Credit Score Requirements
| Credit Score | Availability | Rate Impact |
|---|
| 760+ | All lenders | Best rates |
| 720-759 | All lenders | Good rates |
| 700-719 | Most lenders | Average rates |
| 680-699 | Many lenders | Above-average |
| 660-679 | Some lenders | Higher rates |
| 620-659 | Limited | Premium rates |
Down Payment Requirements
| Property Type | Minimum Down | Typical |
|---|
| Single-Family | 15-20% | 20-25% |
| Duplex | 20-25% | 25% |
| Triplex/Fourplex | 25% | 25-30% |
| Condo | 20-25% | 25% |
| Short-Term Rental | 25-30% | 25-30% |
Documentation Required
NOT Required (The DSCR Advantage):
- ❌ Tax returns
- ❌ W-2s
- ❌ Pay stubs
- ❌ Employment verification
Required:
- ✅ Government-issued photo ID
- ✅ Social Security Number
- ✅ 2 months bank statements
- ✅ Purchase contract
- ✅ Lease (if rented)
- ✅ Property insurance quote
For LLC Purchases:
- ✅ Articles of Organization
- ✅ Operating Agreement
- ✅ EIN Letter
Reserve Requirements
| Scenario | Reserves Required |
|---|
| 1-4 properties | 3-6 months PITIA |
| 5-10 properties | 6-9 months PITIA |
| 11+ properties | 9-12 months PITIA |
| First-time investor | 6-12 months PITIA |
What Counts as Reserves:
- ✅ Checking/savings accounts
- ✅ Money market accounts
- ✅ Stocks/bonds (70% of value)
- ✅ Retirement accounts (60% of value)
Property Type Eligibility
Eligible:
- ✅ Single-family homes
- ✅ 2-4 unit residential
- ✅ Townhomes
- ✅ Warrantable condos
Usually Eligible:
- ⚠️ Non-warrantable condos
- ⚠️ Short-term rentals
- ⚠️ Rural properties
NOT Eligible:
- ❌ 5+ unit buildings
- ❌ Mobile homes
- ❌ Raw land
First-Time Investor Requirements
| Requirement | Experienced | First-Time |
|---|
| Down Payment | 20-25% | 25-30% |
| Reserves | 3-6 months | 6-12 months |
| Minimum DSCR | 1.00 | 1.10-1.25 |
| Credit Score | 660+ | 680+ |
Foreign National Requirements
- Valid passport
- U.S. bank account
- 25-30% down payment
- 6-12 months reserves
- DSCR 1.0+ (some require 1.25+)
What If DSCR is Below 1.0?
Options:
- No-Ratio DSCR programs (higher rates)
- Increase down payment
- Interest-only option
- Buy down rate
- Increase rent (if below market)
- Find different property
Requirement Summary
| Requirement | Minimum | Optimal |
|---|
| DSCR Ratio | 0.75 | 1.25+ |
| Credit Score | 620 | 720+ |
| Down Payment | 20% | 25%+ |
| Reserves | 3 months | 6+ months |
Start Your Application →