DSCR Purchase Loans
Explore financing for qualifying rental-property purchases based primarily on property cash flow.
Explore this DSCR loan programDSCR Program
DSCR Loans for Investment Properties
Finance your first or next rental property based primarily on the property's rental income and cash flow—not traditional personal income qualification. Explore DSCR loan programs for purchases, refinances, and cash-out refinances on eligible investment properties.
Program availability, eligibility, rates, terms and underwriting requirements vary by lender and loan program.
DSCR Loan Highlights
- No Personal Income Required
- Qualification Based on Rental Income
- 20% — Down Payment as Low as
- 75% — Cash-Out LTV Up To
- 620–640 — Starting FICO Range for Available Programs
- $75K–$5M+ — Approximate Loan Amount Range
Program availability, eligibility, rates, terms and underwriting requirements vary by lender and loan program. Review requirements
DSCR loan calculator
Estimate DSCR and LTV for your investment property
Use this DSCR loan calculator to organize property income, recurring expenses, estimated value, and requested loan amount for preliminary DSCR and LTV estimates.
THE WORKING FORMULA
Monthly qualifying rental income ÷ monthly qualifying property expense
$
$
Your Estimated DSCR
1.43
Estimated LTV
75%
Your property's estimated qualifying rental income is approximately 1.43× its estimated qualifying monthly property expense. Some DSCR programs may be available with minimum DSCR requirements as low as 0.75, subject to lender, property, borrower and program requirements. Maximum LTV varies by transaction type, property, borrower profile, lender and program.
See My DSCR Loan OptionsWhat Does My DSCR Mean?
Below 1.00Rental income is below estimated qualifying property expense.
1.00–1.19Property income exceeds estimated property expense; program eligibility varies.
1.20–1.24Stronger estimated property cash-flow coverage.
1.25+Higher estimated property cash-flow coverage.
Minimum DSCR requirements, eligible income, expense treatment and calculation methods vary by lender and program.
Lenders and programs use different DSCR calculations, expense treatment, LTV limits, and eligibility requirements.
DSCR Loan Programs
Explore DSCR loan programs by investment scenario
Compare DSCR programs for purchases, refinances, cash-out refinances, short-term rentals, LLC-owned properties, multifamily properties, first-time investors, and foreign national investors.
DSCR Refinance
Explore refinancing options for existing investment-property mortgages.
Explore this DSCR loan programDSCR Cash-Out Refinance
Explore options for accessing equity from qualifying investment properties.
Explore this DSCR loan programShort-Term Rental / Airbnb DSCR
Explore financing options for eligible short-term rental properties.
Explore this DSCR loan programDSCR Loans for LLCs
Learn about eligible DSCR financing and entity vesting options.
Explore this DSCR loan programDSCR Multifamily Loans
Explore DSCR financing options for eligible multifamily investment properties.
Explore this DSCR loan programDSCR Loans for First-Time Home Buyers
First-time home buyers and first-time investors may be eligible for select DSCR programs to purchase an investment property.
Explore this DSCR loan programDSCR loan program fundamentals
How DSCR loan programs evaluate property cash flow
DSCR loan programs generally compare qualifying rental income with qualifying property-related debt obligations or expenses. Exact calculations, eligible rental income, expense treatment, and minimum DSCR requirements vary by lender and program.
Use the DSCR loan calculator →The working formula
Monthly qualifying rental income ÷ monthly qualifying property expense
Illustrative example: $3,000 in qualifying monthly rental income divided by $2,400 in qualifying monthly property expense equals an estimated DSCR of 1.25. Actual lender calculations may differ.
DSCR loan guides
Understand DSCR Loan Requirements and Financing Options
Explore DSCR loan guides covering requirements, rates, credit scores, down payments, calculations, and investment-property financing scenarios.
DSCR Loan Requirements
Understand the property, income, expense, and documentation questions lenders may review.
Read this DSCR loan guideDSCR Loan Rates
Learn which property and program factors can shape pricing and terms.
Read this DSCR loan guideDSCR Loan Credit Score Requirements
Review how credit-score ranges can be part of a broader lender evaluation.
Read this DSCR loan guideDSCR Loan Down Payment
Explore purchase financing questions around value, loan amount, and equity contribution.
Read this DSCR loan guideHow DSCR Works
See the property-level income and expense inputs behind an estimated DSCR.
Read this DSCR loan guideDSCR Loan vs Conventional Loan
Compare the financing approaches investors consider across purchase, refinance, and cash-out scenarios.
Read this DSCR loan guideDSCR questions
Common questions from real estate investors
What is a DSCR loan?
A DSCR loan is investment-property financing that may focus primarily on the property’s rental income and cash flow. Requirements vary by lender and loan program.
Learn how DSCR worksHow is DSCR calculated?
Estimated DSCR compares qualifying monthly rental income with qualifying monthly property expense. Lenders may use different income and expense treatment.
Use the calculatorDoes an estimated DSCR above 1.0 mean I qualify?
No. An estimate above 1.0 does not establish eligibility or approval. A lender reviews the full request and applicable program requirements.
Review DSCR requirementsCan DSCR financing be used for a refinance?
DSCR financing may be available for qualifying purchase, rate-and-term refinance, or cash-out refinance scenarios, depending on the lender and program.
Explore refinance optionsHow does LTV relate to a DSCR loan?
LTV compares the requested loan amount with estimated property value. It is separate from DSCR, and both are factors lenders evaluate when reviewing a financing scenario.
Estimate DSCR and LTVCan short-term rental income be considered?
Some programs may consider eligible short-term rental properties. Documentation and income treatment vary by lender and loan program.
Explore short-term rental DSCRStart with the property
See Which DSCR Loan Options Fit Your Property
Calculate your property's estimated DSCR and see financing options for purchase, refinance, and cash-out investment properties.
INVESTOR WORKSHEET
Income
Expenses
Estimated DSCR1.43