What is a DSCR Loan?
A DSCR (Debt Service Coverage Ratio) loan qualifies you based on the rental property's income — not your personal W2 or tax returns. If the property generates enough income to cover its mortgage payment at the lender's required ratio, you qualify. This makes DSCR loans ideal for self-employed investors, those with complex tax returns, or investors scaling beyond the conventional 10-property limit.
DSCR Loan Requirements (2026)
Most DSCR lenders require: minimum DSCR of 1.0-1.25, 20-25% down payment, credit score of 660+, and the property must be non-owner-occupied investment property. Rates are typically 1-2% above conventional rates. Some lenders allow interest-only payments, and there is no limit on the number of properties you can finance.