A DSCR loan (Debt Service Coverage Ratio loan) is a type of investment property mortgage that qualifies you based on the rental income the property generates — not your personal income, W-2s, or tax returns. If the property earns enough rent to cover its mortgage payment, you qualify. DSCR loans are ideal for real estate investors, self-employed borrowers, and anyone who owns multiple properties.

How is DSCR calculated?

DSCR is calculated by dividing the property's gross monthly rental income by its total monthly PITIA (Principal, Interest, Taxes, Insurance, and Association dues). For example: $3,000 monthly rent ÷ $2,400 PITIA = 1.25 DSCR. A DSCR above 1.0 means the property generates more income than its debt obligation.

What credit score do I need for a DSCR loan?

Most DSCR lenders require a minimum 620 FICO score, though better rates are available at 680+ and 720+. Unlike conventional loans, DSCR loans do not use your debt-to-income ratio — only the property's cash flow and your credit profile matter.

How much down payment is required for a DSCR loan?

DSCR loans typically require 20-25% down payment. Some lenders allow 15% down for strong borrowers with high DSCR ratios and excellent credit. Investment properties financed through LLCs or corporations are also eligible.

Can I get a DSCR loan through my LLC?

Yes. DSCR loans are specifically designed for investment properties and can be originated in the name of an LLC, corporation, or trust. This is one of the key advantages over conventional loans, which typically require personal borrowing. Viador Partners specializes in DSCR loans for LLC-held investment properties in Florida and Ohio.

How fast can a DSCR loan close?

DSCR loans typically close in 21-30 days. Because there is no income verification or employment documentation required, the process is faster than conventional loans. Some lenders offer pre-approval within 24 hours. Viador Partners targets 21-day closings for qualified DSCR borrowers.

What is the difference between a DSCR loan and a conventional rental property loan?

A conventional rental property loan requires full income documentation — W-2s, tax returns, and a debt-to-income ratio under 45%. It also limits most borrowers to 6-10 financed properties. A DSCR loan qualifies based only on the property's rental income, requires no personal income docs, has no limit on financed properties, and can be held in an LLC. DSCR loans typically have slightly higher rates (0.5-1.5% more) but offer far more flexibility for scaling investors.

Free Tool

DSCR Loan Calculator

Enter your rental income and loan details to instantly calculate your Debt Service Coverage Ratio and see whether you qualify — no W-2s or tax returns required.

Property details

Monthly gross rental income ($)

Property value ($)

Loan amount ($)

Interest rate (%)

Loan term

Monthly property tax ($)

Monthly insurance ($)

Monthly HOA ($) — enter 0 if none

DSCR ratio

—

Monthly PITIA

—

Monthly cash flow

—

Loan-to-value

—

Full breakdown

Get a free quote for this deal →

DSCR approval tiers

1.25+ DSCR	Best rates available
1.20 DSCR	Strong — competitive rates
1.10 DSCR	Approved, slight rate adj.
1.00 DSCR	Break-even — some lenders
Below 1.00	No-ratio DSCR program

What is a DSCR loan?

The investor loan that qualifies on property income — not yours

A DSCR loan (Debt Service Coverage Ratio loan) is a non-QM mortgage designed specifically for real estate investors. Instead of verifying your personal income through W-2s or tax returns, the lender evaluates whether the property generates enough rental income to cover its own mortgage payment. If the property cash flows, you qualify.

No income documentation required

DSCR loans do not require W-2s, pay stubs, or tax returns. Qualification is based entirely on the property's rental income relative to its debt obligations. This is ideal for self-employed investors, those with complex tax situations, or anyone scaling a portfolio beyond conventional loan limits.

LLC and entity borrowing allowed

Unlike conventional loans, DSCR loans can be originated in the name of an LLC, corporation, or trust. This protects your personal assets, keeps the loan off your personal credit report, and makes it easier to structure deals with partners or for tax purposes.

No limit on financed properties

Conventional loans limit most borrowers to 6–10 financed properties. DSCR loans have no such limit — you can finance your 5th, 10th, or 20th property the same way you financed your first, as long as each property qualifies on its own cash flow.

Fast closings — typically 21 days

Without income documentation, the DSCR process is significantly faster than conventional loans. Viador Partners targets 21-day closings for qualified DSCR borrowers. For investors competing for deals, speed is a genuine competitive advantage.

Frequently asked questions

Everything investors ask about DSCR loans

What is a DSCR loan and how does it work?

A DSCR loan qualifies you based on the investment property's rental income, not your personal W-2 or tax returns. The lender calculates your Debt Service Coverage Ratio (DSCR = Monthly Rent ÷ Monthly PITIA). If that ratio is 1.0 or higher, the property generates enough income to cover its debt — and you qualify. No employment verification, no personal DTI calculation.

What DSCR ratio do I need to qualify for a loan?

Most lenders require a minimum DSCR of 1.0. For the best available rates, you want 1.25 or higher. At 1.0–1.10, you can still be approved but may see a slight rate adjustment. Below 1.0, some lenders offer no-ratio DSCR programs that rely on your credit profile and down payment rather than cash flow.

Can I get a DSCR loan for a short-term rental (Airbnb / VRBO)?

Yes. Many DSCR lenders accept short-term rental income documentation, typically using AirDNA market rent data or 12 months of platform income history. Short-term rentals may carry a small rate premium compared to long-term rentals, but they are fully eligible for DSCR financing.

What is the minimum credit score for a DSCR loan?

Most DSCR lenders set a minimum of 620 FICO. Better rates are available at 680+ and 720+. Unlike conventional loans, DSCR lenders do not calculate your debt-to-income ratio — only your credit score and the property's cash flow determine approval and pricing.

How much do I need to put down on a DSCR loan?

Standard DSCR loans require 20–25% down. Some lenders allow 15% for strong borrowers. No-ratio DSCR programs (for properties with DSCR below 1.0) typically require 30–35% down. The down payment also affects your LTV, which influences your rate.

Are DSCR loan rates higher than conventional rates?

Yes, typically 0.5–1.5% higher than conventional investment property rates. As of early 2026, competitive DSCR rates range from approximately 6.12% to 8.5% depending on DSCR ratio, LTV, credit score, property type, and lender. The flexibility and speed of DSCR loans — no income docs, LLC eligible, no property limit — justify the rate premium for most investors.

What states does Viador Partners offer DSCR loans in?

Viador Partners is actively originating DSCR loans in Florida and Ohio, with additional states available through our lender network. We specialize in Tampa Bay area investment properties and the Columbus and Cleveland Ohio markets. Contact us for availability in other states.

Ready to move forward on a deal?

Chad Evers has 15 years of institutional lending experience. Submit your deal for a free review — you'll hear back within 24 hours with qualification guidance and rate options.

Review My Deal — Free →