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Complete Guide

How to Qualify for a DSCR Loan

DSCR loans qualify based on your property's rental income — not your personal income. No W-2s, no tax returns, no pay stubs. Here's everything you need to know.

DSCR Loan Requirements at a Glance

Minimum DSCR Ratio

1.0 (1.25+ for best rates)

Minimum Credit Score

620 (700+ for best rates)

Maximum LTV

80% purchase / 75% cash-out

Loan Amounts

$100K – $3M

Property Types

SFR, 2-8 unit, condos

Close Time

21–28 days

Income Docs Required

None — qualify on rent

Licensed States

AZ, CA, NV, WA, CO

Step-by-Step: How to Get a DSCR Loan

1

Calculate Your DSCR Ratio

Divide your property's monthly gross rent by the total monthly PITIA (Principal + Interest + Taxes + Insurance + HOA). A ratio of 1.0 or higher qualifies.

2

Check Your Credit Score

Most DSCR programs require a minimum credit score of 620. Check your score and address any errors before applying.

3

Prepare Your Property Documentation

Gather a current lease agreement (or market rent appraisal for vacant properties), property tax records, and insurance quotes.

4

Complete the Pre-Qualification

Submit a 2-minute pre-qualification at allapprovedhere.com/qualify. No credit pull required at this stage.

5

Receive Your Loan Estimate

A licensed loan officer will review your scenario and provide a Loan Estimate within 1 business day.

6

Close Your Loan

Complete the full application, order the appraisal, and close in 21–28 days.

Frequently Asked Questions

What is a DSCR loan?

A DSCR (Debt Service Coverage Ratio) loan is a type of investment property mortgage that qualifies borrowers based on the rental income of the property — not the borrower's personal income. No W-2s, tax returns, or pay stubs are required. The lender divides the property's monthly gross rent by the total monthly housing payment (PITIA) to calculate the DSCR ratio.

What DSCR ratio do I need to qualify?

Most DSCR lenders require a minimum ratio of 1.0, meaning the property's rental income covers 100% of the monthly payment. A DSCR of 1.25 or higher is considered strong and qualifies for the best rates and terms. Some programs allow a DSCR as low as 0.75 with a rate adjustment. A DSCR below 0.75 typically does not qualify for DSCR financing.

How do I calculate my DSCR ratio?

DSCR = Monthly Gross Rent ÷ Monthly PITIA (Principal + Interest + Taxes + Insurance + HOA). Example: If your property rents for $2,800/month and your total monthly payment is $2,200, your DSCR is 2,800 ÷ 2,200 = 1.27. A DSCR above 1.0 means the property cash flows positively.

What credit score do I need for a DSCR loan?

Most DSCR programs require a minimum credit score of 620. The best rates are available at 700 or higher. Some lenders offer programs down to 580 with higher down payment requirements. AllApprovedHere.com works with borrowers from 620 and above.

What property types qualify for DSCR loans?

DSCR loans are available for: 1-4 unit single-family residences (SFR), 2-8 unit multi-family properties, condominiums, and townhomes. The property must be non-owner-occupied (investment property). Short-term rental (Airbnb/VRBO) income may be used with documentation.

What is the maximum LTV for a DSCR loan?

Most DSCR programs allow up to 80% LTV for purchase loans and 75% LTV for cash-out refinances. Some programs allow up to 85% LTV with mortgage insurance. The maximum LTV depends on the property type, DSCR ratio, and credit score.

How fast can a DSCR loan close?

DSCR loans typically close in 21–28 days. Because no personal income verification is required, the process is faster than conventional loans. AllApprovedHere.com has closed DSCR loans in as few as 14 days for well-prepared borrowers.

What states are DSCR loans available in?

AllApprovedHere.com offers DSCR loans in Arizona (AZ), California (CA), Nevada (NV), Washington (WA), and Colorado (CO). NMLS #1502253, licensed through Barrett Financial Group (NMLS #181106).

Ready to See If You Qualify?

Takes 2 minutes. No credit pull. No income docs required.

NMLS #1502253 · Licensed in AZ, CA, NV, WA, CO · Not a commitment to lend