Frequently Asked Questions About DSCR Loans
What credit score do I need for a DSCR loan?
Most lenders require a minimum credit score of 620–680, though some programs accept scores as low as 600. Higher credit scores typically unlock better rates and terms.
Can I use a DSCR loan for a property I don’t live in?
Yes. DSCR loans are designed specifically for investment properties. You don’t need to occupy the property or provide personal income documentation.
How is the Debt Service Coverage Ratio calculated?
DSCR = Monthly Rental Income ÷ Monthly Debt Obligations. A ratio of 1.0+ means the property generates enough income to cover its debt. Most lenders prefer 1.25 or higher.
What types of properties qualify?
Single-family rentals, 2–4 unit multifamily, condos, townhomes, and some short-term rentals. Mixed-use and commercial structures may qualify under certain programs.
Do I need to show tax returns or W-2s?
No. DSCR loans are income-based on the property itself, not your personal employment or tax history. This makes them ideal for self-employed investors or those with complex income structures.
How long does approval take?
Most DSCR loans close in 21–30 days. Pre-qualification can happen in 24–48 hours with a property address and basic financial overview.