A DSCR (Debt Service Coverage Ratio) loan is an investment property loan where qualification is based on the property's rental income rather than your personal income. The DSCR compares the property's rental income to its total debt payments, making it ideal for investors who may not show high W-2 income.

DSCR is calculated by dividing the property's monthly rental income by its total monthly mortgage payment, including principal, interest, taxes, insurance, and association dues (PITIA). For example, a property earning $2,000/month in rent with a $1,600/month PITIA payment has a DSCR of 1.25.

Most lenders require a minimum DSCR of 1.10 to 1.25, meaning the property's rent covers 110-125% of the mortgage payment. Some lenders accept ratios as low as 0.75, though lower ratios typically come with higher interest rates and lower maximum LTV. Use the calculator above to see which lenders match your deal.

Most DSCR lenders require a minimum credit score of 660 to 680. A few lenders go as low as 600, though you'll likely face higher rates and stricter terms. Higher scores (720+) unlock the best rates and maximum leverage.

Yes — that is the primary advantage of DSCR loans. Lenders qualify you based on the property's cash flow, not your personal income, tax returns, or employment history. This makes DSCR loans popular with self-employed investors and those with multiple properties.

Most DSCR lenders finance single-family residences, 2-4 unit properties, condos, and townhomes. Some lenders also finance 5+ unit multifamily and short-term rental properties, though eligibility varies. Enter your property type in the calculator to see which lenders support it.

DSCR loans typically close in 14 to 30 days, significantly faster than conventional mortgages. The fastest lenders can close in as few as 14 days since there is no income documentation to verify. Speed varies by lender — compare closing timelines with the calculator above.

DSCR Pulse compares top DSCR lenders instantly based on your specific deal parameters. Enter your property price, rental income, credit score, and down payment to see real-time rate estimates, fees, and eligibility across all lenders in seconds — no phone calls or credit checks required.