Simply Approved Mortgages
DSCR · Business-Purpose

DSCR Rental Property Loans

Debt Service Coverage Ratio loans for 1–8 unit investment properties. No personal income docs — the property's cash flow qualifies you.
Updated
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Quick answer

What is a dscr loan and who qualifies?

DSCR loan: qualify with rent, not tax returns. A DSCR loan is a business-purpose rental-property loan that qualifies you based on the property's rental income divided by its mortgage payment (PITIA). If the ratio is at or above the program minimum, the deal works — regardless of your W-2 or tax return picture.

Reviewed and updated August 31, 2026

Key takeaways
  • DSCR = gross monthly rent ÷ PITIA (principal + interest + taxes + insurance + HOA).
  • Most programs need DSCR ≥ 1.00; best pricing at 1.20–1.25+. No-Ratio DSCR available down to 0.75.
  • Typical: 15–25% down, 660+ FICO, 1–6 months reserves, LLC vesting.
  • No W-2s, tax returns, or pay stubs. Business-purpose loan under Reg Z's business-purpose exemption.
Live pricing · DSCR

Current DSCR Loan Rates for Rental Property

Every figure below comes from a live pricing response under our production loan officer pricing context, priced with lender fees in and on a 30-day lock. The rate, the APR shown for that quote, any points or lender credit and the monthly principal-and-interest payment on a given row all belong to the same quote — we never assemble a row from separate sources or publish a sample rate.

DSCR pricing moves with coverage ratio, leverage, credit tier, property type, purpose and prepayment structure. Two investors buying identical duplexes on the same street can be quoted very differently, which is why the rate center lets you price your own scenario rather than read a static table.

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Live pricing unavailable — no current pricing response.

Scheduled rate refresh: 11:30 AM and 5:00 PM ET each business dayPricing is refreshed on a schedule (11:30 AM and 5:00 PM ET each business day) and can change between refreshes.View 30/90-day rate history
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Get My Live DSCR Rates

The three cards above are featured examples from the current snapshot. Enter your own property, credit tier, leverage and rent to see every eligible option for your deal.

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Rate & Pricing Disclosure: This quote is an indication for the scenario entered and the pricing available at the time shown. Rates and terms are subject to change without notice and may change or may not be available at commitment or closing. This is not a rate lock, loan approval, commitment to lend or offer of credit. APR reflects applicable borrower-paid finance charges and pricing credits for this quote and may be the APR returned with the quote or our own audited calculation where verified borrower-paid finance charges outside the quoted price apply. Additional lender and third-party costs may apply and may not be included in the APR. Payment shown is principal and interest only and excludes taxes, insurance, HOA dues and other applicable costs, so your actual payment will be higher. Simply Approved Mortgages LLC is a mortgage broker, not the funding lender. Business-purpose, non-owner-occupied investment property only. Equal Housing Opportunity.

APR reflects applicable borrower-paid finance charges and pricing credits for this quote. Depending on the option, the APR shown is either the APR returned with that quote or our own audited calculation, used where verified borrower-paid finance charges outside the quoted price apply. Other lender and third-party costs may apply and may not be included in the APR.

Estimated payment is principal and interest only and does not include property taxes, insurance, HOA dues, flood insurance, escrows or other applicable costs.

Rate questions for this page

Are the DSCR rates shown here a quote?

No. They are live indications for the scenario that was priced, at the time stamped above. A quote requires a submitted application, credit review and property documentation.

How often does DSCR pricing change?

Investor pricing can change intraday. The timestamp above shows exactly when the displayed pricing was returned and downgrades once it is no longer current.

Price your own DSCR scenarioDSCR pricing tiers by DSCR, LTV and FICOCalculate your DSCR ratio
DSCR loan overview

DSCR loan: qualify with rent, not tax returns.

A DSCR loan is a business-purpose rental-property loan that qualifies you based on the property's rental income divided by its mortgage payment (PITIA). If the ratio is at or above the program minimum, the deal works — regardless of your W-2 or tax return picture.

Loan amount
$100,000 – $3,500,000
Max LTV
Up to 80% (85% by exception)
DSCR
0.75 floor · 1.00+ for full leverage
Reserves
0–12 months PITIA (tier-based)
Terms
30-yr fixed, 40-yr fixed, 5/6 & 7/6 ARM, interest-only options
Vesting
Individual, LLC, LP, S-Corp, C-Corp, Series LLC
Free with your application

Get your DSCR Scenario Summary.

Complete the short pre-qualification form and we send back a full DSCR analysis: HUD Fair Market Rent, AVM value, calculated DSCR, PITIA breakdown, and the max qualifying loan amount up to 80% LTV.

  • HUD FMR rent estimate for the subject property
  • AVM property value + max qualifying loan
  • Calculated DSCR with PITIA breakdown
  • Cash-on-cash and year-one cash flow
Get Your Personalized Rate QuoteTakes ~3 minutes • PDF delivered on the thank-you page and emailed

Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.

What a DSCR loan is

A DSCR loan (Debt-Service Coverage Ratio) is a business-purpose investment property mortgage that qualifies based on the property's rental cash flow rather than the borrower's personal income. It is the standard financing vehicle for buy-and-hold rental investors, short-term-rental operators, and BRRRR investors. Because it finances a non-owner-occupied property for a business purpose, it is originated under Regulation Z's business-purpose exemption and does not carry consumer Ability-to-Repay obligations.

How a DSCR loan is calculated — the actual math

DSCR = Gross Monthly Rent ÷ PITIA, where PITIA = Principal + Interest + Taxes + Insurance + HOA (plus flood insurance where applicable).

  • Rent source: the appraiser's Form 1007 Single-Family Comparable Rent Schedule, the actual lease if higher, or AirDNA / booking history for short-term rentals.
  • DSCR = 1.00: rent exactly covers the payment — zero cushion.
  • DSCR = 1.25: 25% cash-flow cushion — best pricing tier.
  • DSCR < 1.00 ("No Ratio"): available on select programs down to ~0.75 with lower LTV and higher rate.

Why investors use DSCR loans

Self-employed and full-time investors often can't qualify for a conventional Fannie Mae investment loan — either their tax returns show too much depreciation, or they've already hit the 10-financed-property cap. DSCR sidesteps both: no personal income docs, and no cap on the number of properties financed. Vest in an LLC to keep personal and portfolio credit separate.

DSCR loan rates & terms

DSCR rates typically run 1.00%–2.00% higher than an owner-occupied conforming loan. Best pricing goes to borrowers with 720+ FICO, 1.20+ DSCR, and 65–70% LTV. Standard options: 30-year fixed, 5/6 and 7/6 ARM, and 10-year interest-only followed by 20-year amortization. Prepayment penalties are typically a 3–5 year step-down; a no-prepay option is available for a rate premium.

Who a DSCR loan fits

Buy-and-hold investors scaling from 1 to 20+ doors, short-term rental (STR) operators, BRRRR investors refinancing after stabilization, LLC-vested portfolios, and self-employed borrowers whose tax returns understate real cash flow. Foreign nationals qualify on a parallel DSCR program with 25%+ down (up to 75% LTV on purchase; 70% on cash-out).

How to apply for a DSCR loan

Send the property address, purchase price (or current value), and estimated monthly rent. A Simply Approved Mortgages Loan Officer runs the DSCR before you make an offer so you know exact maximum leverage. Full doc checklist appears below.

Rates and fees shown anywhere on this site are illustrative and not a quote, lock, offer, or commitment to lend. Binding figures appear on your Loan Estimate or Term Sheet.

Free with your application

Get your DSCR Scenario Summary

Complete the short pre-qualification form and we send back a full DSCR analysis: HUD Fair Market Rent, AVM value, calculated DSCR, PITIA breakdown, and the max qualifying loan amount up to 80% LTV.

  • HUD FMR rent estimate for the subject property
  • AVM property value + max qualifying loan
  • Calculated DSCR with PITIA breakdown
  • Cash-on-cash and year-one cash flow
Get Your Personalized Rate QuoteTakes ~3 minutes • PDF delivered on the thank-you page and emailed

Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.

Program highlights

Why investors choose this DSCR loan program

No tax returns

Qualification uses market rent or lease, not personal income.

LLC / entity vesting

Close in your LLC, LP, or Corp — standard, no premium.

Unlimited financed properties

No cap on number of properties owned or financed.

Interest-only available

10-year IO period to boost cash flow on select programs.

Free with your application

Get your DSCR Scenario Summary

Complete the short pre-qualification form and we send back a full DSCR analysis: HUD Fair Market Rent, AVM value, calculated DSCR, PITIA breakdown, and the max qualifying loan amount up to 80% LTV.

  • HUD FMR rent estimate for the subject property
  • AVM property value + max qualifying loan
  • Calculated DSCR with PITIA breakdown
  • Cash-on-cash and year-one cash flow
Get Your Personalized Rate QuoteTakes ~3 minutes • PDF delivered on the thank-you page and emailed

Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.

Requirements

DSCR qualifications at a glance

Program guidelines vary by investor. These are typical ranges — a Loan Officer confirms exact numbers on your scenario.

RequirementTypicalNotes
Minimum credit score620 minimum (740+ for max leverage)620–660 files price at reduced LTV; 680+ required when DSCR is between 0.75 and 0.99.
Down payment / LTV20–25% down (up to 80% LTV)85% LTV is an exception at 740+ FICO on an SFR with a 30-year fixed and a 3-year prepay. Cash-out is capped at 70–75% LTV depending on tier.
Minimum DSCR0.75 program floor1.00+ unlocks full leverage; 0.75–0.99 caps LTV at 75% with a 680 FICO and a $175K minimum loan. No exceptions below 0.75.
Personal incomeNot verifiedNo W-2, tax returns, or pay stubs. Notarized business-purpose and non-owner-occupancy certification required.
Reserves0–12 months PITIA0 months at or below $1.5M and 70% LTV; 6 months above 70% LTV, on cash-out, or when DSCR is under 1.00; 9–12 months on larger balances.
OccupancyInvestment only (non-owner)Primary residence not eligible.
Property types1–4 unit, condo, PUD, townhomeNon-warrantable condos allowed at reduced LTV. 5–8 unit properties go through our separate 5–8 unit program.
VestingIndividual, LLC, LP, Corp, revocable trustMax 4 members; personal guaranty from every 25%+ owner. Series LLCs not eligible.
Loan amount$100K – $3.5MBalances over $2.5M are 30-year fixed only.
Prepayment penalty5-yr, 3-yr, tiered step-down, or nonePrepay is not permitted in AK, KS, KY, MI, MN, NM, OH or RI (and is restricted in IL, NJ, PA, LA, MS).
STR eligibilityAllowed at up to 75% LTVRequires 700 FICO, DSCR 1.00+, and a 20% haircut on documented short-term revenue.

Ranges are typical program guidelines and vary by investor, credit tier, and market. Not a commitment to lend.

Use cases

DSCR loan use cases

  • Long-term single-family rentals
  • 2–4 unit small multifamily
  • 5–8 unit residential portfolios
  • Portfolio refinance / cash-out
Rental strategies

Which rental type fits your DSCR loan?

DSCR works across long-term single-family, short-term / Airbnb, and Section 8 rentals. Each strategy underwrites differently — here's how the cash flow, pricing, and trade-offs compare.

Long-Term / Single-Family Rentals

12-month leases to families and working tenants — the bread and butter of DSCR.

The standard DSCR use case: a 1–4 unit home leased on a 12-month agreement. Underwriting uses the lower of the in-place lease or the appraiser's market rent (Form 1007). Stable occupancy, predictable PITIA, easiest program tier and best pricing.

DSCR treatment: Qualified on lease or 1007 market rent — whichever is lower. Best DSCR pricing tiers apply at ≥ 1.20.
Pros
  • Typically the strongest pricing and highest LTVs among DSCR use cases, subject to lender guidelines
  • Longer tenancies = lower vacancy and turnover cost
  • Simpler insurance (standard landlord DP-3 policy)
  • Accepted in every DSCR market we lend in
Trade-offs
  • Lower gross rent than STR — thinner cash flow in high-cost markets
  • Rent increases limited by lease term and local rent-control rules
  • Eviction timelines can be long in tenant-friendly states

Short-Term Rentals (Airbnb / VRBO / STR)

Nightly and weekly rentals underwritten on 12-month STR revenue.

For properties operated as vacation or short-term rentals, DSCR is calculated on trailing 12-month host revenue (AirDNA / Rabbu / operator statements) rather than a long-term lease. Higher gross income, but seasonality, cleaning, management, and platform fees affect real cash flow. Requires the property to be legally permitted for STR use.

DSCR treatment: DSCR = trailing 12-mo STR revenue (or AirDNA projection) ÷ PITIA. Some investors need a 0.05–0.10 higher DSCR floor vs. long-term.
Pros
  • Materially higher gross rents in tourist and event markets
  • No long-term tenant — flexible personal / seasonal use
  • Multiple income streams (nightly, weekly, corporate)
Trade-offs
  • Local STR bans, permit caps, and HOA restrictions can kill the deal
  • Revenue is seasonal — reserves must cover slow months
  • Higher operating costs (cleaning, management, furnishings, utilities)
  • STR-specific insurance (e.g. Proper, Steadily) required — costs more than a DP-3

Section 8 / Housing Voucher Rentals

Government-backed rent via a HUD Housing Assistance Payments (HAP) contract.

The tenant qualifies through the local Public Housing Authority (PHA) and the PHA pays most or all of the rent directly to you under a HAP contract. DSCR is underwritten off the executed HAP contract rent — often above local market — with the government portion treated as reliable income. Property must pass an annual HUD HQS / NSPIRE inspection.

DSCR treatment: DSCR = contract rent ÷ PITIA. Landlord collects 100% of contract rent, but only the HAP portion (~70%) is government-guaranteed — we price files on both bases (HAP-only conservative, full-contract aggressive).
Pros
  • Rent paid on time, directly from the PHA — very low delinquency
  • Contract rents frequently exceed local market rent
  • Multi-year demand — long waitlists in most metros
  • Recession-resistant income stream
Trade-offs
  • Annual HQS / NSPIRE inspection — repairs required to stay compliant
  • PHA lease-up and re-certification can take 30–60 days
  • Tenant portion of rent (if any) still carries normal collection risk
  • Some HOAs and municipalities have voucher-source-of-income rules
Rates & pricing

DSCR Loan Rates & Pricing Tiers

DSCR rates are set by the property's cash-flow strength, your credit profile, and leverage. The best-pricing combinations land at high DSCR, low LTV, and strong FICO. Below is a representative band and tier breakdown for a typical 1–4 unit rental DSCR loan.

Current rate band
Updated
7.55% – 9.75%

Illustrative starting range for a 30-year fixed DSCR loan on a 1–4 unit investment property, priced roughly 1.00–2.00 pts over the current 30-year conforming benchmark. Actual rates vary daily by investor, market, and loan scenario — see the live market update section above for today's implied band.

What moves your rate
DSCR ratio
1.25+ is best pricing

Every 0.05 below 1.25 usually adds pricing. Below 1.00 is a No-Ratio premium tier.

Loan-to-value (LTV)
65–70% = strongest pricing tier

80% LTV is available on strong DSCR + credit but carries a higher rate and stricter reserves; 85% is exception-only.

Credit score
720+ is preferred

660 floor; 700–719 is a mid-tier; 620–659 with 30% down.

Property type & use
Long-term single-family < STR / Section 8

Short-term rentals and 5–8 unit assets often price slightly higher.

Pricing tiers
TierDSCRLTVFICONotes
Best pricing1.25+65–70%720+Strongest pricing tier and lowest points; 30% down preferred.
Standard pricing1.00–1.2475%700–719Most common DSCR loan scenario; 25% down.
Higher leverage1.15+80%720+Maximum standard LTV; higher rate, stricter reserves, and stronger DSCR. 85% is exception-only at 740+ FICO on an SFR.
No-Ratio DSCR0.75–0.9970–75%680+Property doesn't fully cover payment; larger down and rate premium.
Low-FICO story1.00+70%620–65930%+ down, strong reserves, and compensating factors.
30-Year Fixed DSCR

Predictable payment; most popular for long-term rentals and portfolio building.

Fixed rate · No balloon · Amortized over 30 years
5/6 & 7/6 ARM DSCR

Lower start rate than fixed; good for investors refinancing or selling within 5–7 years.

Fixed 5 or 7 years · then adjusts with SOFR
Interest-Only DSCR

Lowest monthly payment for cash flow; principal due as balloon or via refinance.

10-year IO · then 20-year amortization

Rates and fees shown are illustrative and not a quote, lock, offer, or commitment to lend. Binding figures appear on your Loan Estimate or Term Sheet. Call or submit a scenario to get your exact pricing.

Free with your application

Get your DSCR Scenario Summary

Complete the short pre-qualification form and we send back a full DSCR analysis: HUD Fair Market Rent, AVM value, calculated DSCR, PITIA breakdown, and the max qualifying loan amount up to 80% LTV.

  • HUD FMR rent estimate for the subject property
  • AVM property value + max qualifying loan
  • Calculated DSCR with PITIA breakdown
  • Cash-on-cash and year-one cash flow
Get Your Personalized Rate QuoteTakes ~3 minutes • PDF delivered on the thank-you page and emailed

Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.

Monthly market update

DSCR rate & market update

Compiled from Freddie Mac PMMS, U.S. Treasury, and BLS releases. Figures are published with the period they cover and the date they were retrieved.

Free tool

DSCR loan calculator

Run your ratio before you make an offer. Uses the standard PITIA-based DSCR formula.

Your result
1.21
Standard pricing (DSCR 1.00–1.24)
Principal + Interest
$1,767 / mo
Taxes
$310 / mo
Insurance
$120 / mo
HOA
$0 / mo
PITIA
$2,197 / mo
Monthly cash flow (pre-vacancy)
$453 / mo

Estimate only. Not a rate quote, lock, or commitment to lend. Talk to a Loan Officer for exact pricing.

Free investor tools

DSCR fit tools

Estimate your DSCR, model an illustrative loan size under your own LTV and target-ratio assumptions, and generate a scenario summary you can send to a loan officer.

Load an illustrative example

Pick a deal shape to load illustrative starting numbers, then edit every field to your own deal. These examples are not program terms, published pricing, leverage limits, or ratio requirements, and no figure is represented as typical or available.

Current: Long-term SFR rental

DSCR Ratio Calculator

Estimate the ratio using the standard formula: DSCR = Gross Monthly Rent ÷ PITIA. DSCR underwriting generally focuses on the property's cash flow rather than a conventional personal debt-to-income calculation; documentation requirements vary by lender, program, borrower and scenario.

Section 8 rent check — HUD Fair Market Rent

Pull the current HUD FMR by ZIP or county and compare it to your market rent.

Open-market rent check — Census ACS median rent

Pull the published median market rent for a state or investor city and compare it to the HUD Section 8 payment standard.

Your DSCR
1.21
Rent covers estimated PITIA (ratio 1.00–1.24)
Principal + Interest
$1,767 / mo
PITIA
$2,197 / mo
Cash flow (pre-vacancy)
$453 / mo

Estimate only. Not a rate lock or commitment to lend.

Start My ApprovalSee Today's Rates

Loan Size & LTV Scenario

An illustrative loan size constrained by the loan-to-value and target DSCR you enter: min(your LTV assumption × value, loan that solves your target ratio). These are your assumptions, not program limits, and this is not an eligibility determination.

Estimated loan amount under these assumptions
$288,000
Limited by: your LTV assumption
Implied LTV
80.0%
Cash to close (down)
$72,000
Estimated PITIA
$2,524 / mo
DSCR at this loan
1.05

Illustrative math based on the assumptions you entered. Actual eligibility, leverage, ratios and pricing vary by lender, program, credit profile, property type and state, and are determined in underwriting. Not an approval, eligibility determination, or commitment to lend.

Start My ApprovalSee Today's Rates
How we work

A broker comparing options — not a single lender's product shelf

Simply Approved Mortgages is a licensed mortgage broker (NMLS #2620881), not a direct lender. We do not fund loans on our own balance sheet. That means a DSCR scenario can be shopped across the wholesale investor programs we have access to, instead of being fit to one company's guidelines. A direct lender is not able to offer anything beyond what it originates, so a file outside that box usually stops there.

Working with a broker

  • One scenario can be measured against multiple wholesale investor programs.
  • If one program declines the property or the structure, others can still be reviewed.
  • Pricing, fees, leverage, and prepay options are compared side by side before you decide.
  • Broker compensation is disclosed, and we are paid the same regardless of which investor is chosen.

Going straight to one lender

  • You get that company's own guidelines, pricing, and property rules — nothing else.
  • A scenario outside those guidelines generally ends there rather than moving to another program.
  • Comparing alternatives means starting over with another company yourself.
  • Going direct can be an excellent fit when your scenario sits squarely inside that company’s box.

How we compare investor options

The comparison is about total execution, not one number. These are the factors weighed on every DSCR scenario we review:

Rate and price together
A rate only means something next to the points or lender credit attached to it. We compare the whole price of a scenario, not the headline number.
Lender and third-party fees
Underwriting, processing, and other lender-side charges vary by investor and change the real cost of the same rate.
Leverage
Maximum LTV or CLTV available for the coverage ratio, credit tier, property type, and purpose in front of us.
Prepayment structure
Term and shape of any prepay, and what buying it down or out does to price — often the difference between two otherwise similar options.
Documentation
What the file actually has to prove: lease or market rent treatment, entity documents, reserves, and experience requirements.
Property fit
Unit count, condition, short-term-rental use, rural designation, and other property characteristics that some programs allow and others do not.
Closing certainty
Whether the scenario sits comfortably inside a program's box or depends on an exception, and what that means for the odds of closing as quoted.
State availability
Not every investor program is offered in every state we work in, so availability is checked before an option is put in front of you.
Lender landscape update · Sept. 4, 2026

Figure and Kiavi: what changed for investors

Figure has completed its acquisition of Kiavi, and Kiavi now operates as a Figure subsidiary. For real estate investors, the practical effect is a routing change: enquiries that previously started on Figure's investor-loan pages are now directed into Kiavi's application flow. Program guidelines, pricing, and eligibility for any lender are set by that lender and can change at any time — confirm current terms with the company directly.

Simply Approved Mortgages has no affiliation with either company, and nothing here is a statement about their products or service. We note ownership and routing changes across the investor-lending market because they affect where an application lands and who ultimately underwrites it.

Want to see how your scenario measures up? Price your DSCR scenario or request a scenario review. Any figures shown before underwriting are estimates, not an offer of credit or a commitment to lend.

Choose your structure

DSCR loan programs

Purchase, cash-out, rate-and-term, equity lines, and No-Ratio — each structure with its own leverage, credit floor, and pricing.

DSCR Cash-Out Refinance →

Pull equity out of a rental you already own to fund the next purchase. Up to 75% LTV on the strongest tier.

DSCR Rate & Term Refinance →

Replace hard money, a maturing bridge, or a higher-rate note with 30-year fixed rental financing.

Investment Property HELOC →

A revolving line against rental equity — draw only what you need. 700 min FICO, up to 75% CLTV.

DSCR Second-Lien HELOC →

A second-position line behind your existing first mortgage on a rental — priced on combined loan-to-value.

No-Ratio DSCR →

For properties that don't fully cover PITIA. Larger down payment and a rate premium instead of a ratio test.

How DSCR Works →

The formula, the rent figure lenders use, and every step from scenario review to closing.

DSCR Loan Requirements →

Credit, DSCR floor, down payment, reserves, property type, and entity rules laid out in one place.

Interest-Only DSCR →

A 10-year interest-only period lowers PITIA, lifts your ratio, and frees monthly cash flow.

DSCR Pros & Cons →

The honest ledger — what you gain over conventional financing and exactly what it costs.

DSCR Loan Rates →

Current rate bands by DSCR, LTV, and FICO tier — plus what actually moves your pricing.

DSCR Calculator →

Run rent ÷ PITIA in seconds and see which pricing tier your deal lands in.

Compare

DSCR loan vs. other investor financing

How a DSCR loan stacks up against the other financing paths real-estate investors use. DSCR wins on speed and documentation; conventional wins on rate; hard money wins on speed alone.

FeatureDSCR LoanConventional InvestorBank StatementHard Money
Income docsNone — rent covers it2 yrs tax returns + W-2s12–24 mo bank statementsNone
Min down payment20–25%20–25%10–20%20–35%
Typical rate range7.5% – 9.75%6.5% – 8.0%8.0% – 10.5%10% – 13%+
Time to close21–30 days30–45 days30–45 days5–14 days
Loan term30-yr fixed / ARM / IO30-yr fixed30-yr fixed / ARM6–24 months
Max financed propertiesUnlimited10 (Fannie cap)10Unlimited
LLC / entity vestingYes — no premiumPersonal onlyPersonal onlyYes
Best forBuy-and-hold at scale1st–2nd rental, low rateSelf-employed W-2 altRehab / bridge only
Property types

Eligible & ineligible properties for a DSCR loan

If your asset is on the eligible list, we can quote it. If it's on the ineligible list, we'll usually still route you to a program that fits.

Eligible
  • Single-family residence (SFR), attached or detached
  • 2–4 unit small multifamily (duplex, triplex, fourplex)
  • 5–8 unit residential multifamily (select programs)
  • Warrantable and non-warrantable condominiums
  • Planned Unit Developments (PUDs) and townhomes
  • Short-term rental (Airbnb / VRBO) properties in permitted markets
  • Section 8 / HAP-contract rentals
  • Condotels (case-by-case, higher DSCR and lower LTV)
  • Mixed-use ≤ 40% commercial (case-by-case)
Ineligible
  • Owner-occupied primary residences
  • Rural properties on >20 acres or with agricultural use
  • Manufactured / mobile homes (singlewide)
  • Log homes, geodesic domes, earth-sheltered homes
  • Working farms, ranches, or income-producing agricultural land
  • Assisted-living or licensed care facilities
  • Properties with unpermitted additions materially affecting value
  • Fractional interests, co-ops, and timeshares
Free with your application

Get your DSCR Scenario Summary

Complete the short pre-qualification form and we send back a full DSCR analysis: HUD Fair Market Rent, AVM value, calculated DSCR, PITIA breakdown, and the max qualifying loan amount up to 80% LTV.

  • HUD FMR rent estimate for the subject property
  • AVM property value + max qualifying loan
  • Calculated DSCR with PITIA breakdown
  • Cash-on-cash and year-one cash flow
Get Your Personalized Rate QuoteTakes ~3 minutes • PDF delivered on the thank-you page and emailed

Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.

Pros & cons

Benefits and trade-offs of a DSCR loan

Pros
  • No personal income documentation — no tax returns, W-2s, or pay stubs.
  • LLC-friendly with clean liability separation.
  • Fast closings (21–30 days) and standardized underwriting.
  • Interest-only options to maximize monthly cash flow.
  • Short-term rental income accepted on many programs.
  • No cap on number of financed properties — scales past the Fannie 10-property limit.
Trade-offs
  • Rates run 1.00–2.00% above owner-occupied conforming loans.
  • Prepayment penalties (3–5 year step-down) on most competitive rates.
  • 20–25% minimum down; 30%+ for best pricing.
  • Investment-only — cannot be owner-occupied.
  • STR income calculation varies by lender — pre-underwrite before offering.
Free with your application

Get your DSCR Scenario Summary

Complete the short pre-qualification form and we send back a full DSCR analysis: HUD Fair Market Rent, AVM value, calculated DSCR, PITIA breakdown, and the max qualifying loan amount up to 80% LTV.

  • HUD FMR rent estimate for the subject property
  • AVM property value + max qualifying loan
  • Calculated DSCR with PITIA breakdown
  • Cash-on-cash and year-one cash flow
Get Your Personalized Rate QuoteTakes ~3 minutes • PDF delivered on the thank-you page and emailed

Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.

Worked example

DSCR loan worked example

An investor buying a $325,000 single-family rental. Market rent (Form 1007) is $2,650/month. She puts 25% down and vests in an LLC.

Inputs
Purchase price
$325,000
Down payment (25%)
$81,250
Loan amount
$243,750
Market rent (Form 1007)
$2,650 / mo
Property taxes
$310 / mo
Insurance
$120 / mo
HOA
$0
FICO
735
Calculation
P&I @ 7.875% (30-yr fixed, illustrative)
≈ $1,768 / mo
PITIA = P&I + tax + ins + HOA
$2,198 / mo
DSCR = Rent ÷ PITIA
$2,650 ÷ $2,198 = 1.21
Best-pricing tier (DSCR ≥ 1.20)
✓ Qualifies
Monthly cash flow (pre-vacancy)
+ $452 / mo

Outcome: Property qualifies on its own cash flow at a 1.21 DSCR — best pricing tier. No W-2s or tax returns needed.

Illustrative only. Not a rate quote, lock, offer, or commitment to lend. Binding terms appear on your Loan Estimate.

Recent closings

Real DSCR borrowers, real deals

"Closed our 11th door in 23 days on a DSCR — no tax returns, closed in the LLC, and priced at the 1.25 tier. This is how we scale."
Marcus T.
Buy-and-hold investor · Tampa, FL
$412,000 · SFR purchase
"Refied two Airbnbs onto 30-yr fixed DSCR at 75% LTV using AirDNA revenue. Cash-out funded our next STR purchase two weeks later."
Priya S.
STR operator · Gatlinburg, TN
$680,000 · Cash-out refi
"First DSCR loan for our LLC. Rate sheet Tuesday, initial scenario review same day on complete applications, funded 19 business days later. No W-2 games."
Devon R.
New investor · Columbus, OH
$218,500 · Duplex purchase
Process

DSCR loan process: from scenario to close

  1. STEP 1
    Scenario review

    Send address, purchase price, and estimated rent. Same-day scenario review on complete applications and initial pricing.

  2. STEP 2
    Application & docs

    Entity docs, ID, insurance quote, lease or rent schedule.

  3. STEP 3
    Appraisal & rent schedule

    1007/1025 or 216 form ordered — usually 7–10 days.

  4. STEP 4
    Underwrite & clear

    Business-purpose underwriting, typically 10–15 business days.

  5. STEP 5
    Close in your entity

    Wire funds, record deed. Servicing set up automatically.

Free with your application

Get your DSCR Scenario Summary

Complete the short pre-qualification form and we send back a full DSCR analysis: HUD Fair Market Rent, AVM value, calculated DSCR, PITIA breakdown, and the max qualifying loan amount up to 80% LTV.

  • HUD FMR rent estimate for the subject property
  • AVM property value + max qualifying loan
  • Calculated DSCR with PITIA breakdown
  • Cash-on-cash and year-one cash flow
Get Your Personalized Rate QuoteTakes ~3 minutes • PDF delivered on the thank-you page and emailed

Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.

How to apply

DSCR loan document checklist

Here's what to have ready when you apply. Missing items can be added during processing — but a complete file closes faster.

  • Government-issued photo ID (driver's license or passport) for every guarantor
  • Entity documents (LLC / LP / Corp): Articles of Organization, Operating Agreement, EIN letter, Certificate of Good Standing
  • Voided check or bank letter for the funding account
  • Two most recent months of asset statements showing down payment + reserves
  • Homeowners / landlord insurance quote naming the lender as mortgagee
  • Purchase contract (purchase) or existing note & mortgage (refinance)
  • Preliminary title commitment ordered through an approved title company
  • Current lease(s) or Section 8 HAP contract if the property is tenant-occupied
  • Property tax bill and HOA statement (if applicable)
  • Payoff statement from current lender (refinance only)
States we serve

DSCR loans in Florida, Colorado, and LLC-eligible states

Simply Approved Mortgages LLC (NMLS #2620881) is a mortgage broker, not a direct lender, and arranges residential mortgage loans in Florida and Colorado. DSCR business-purpose loans may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.

DSCR in AlabamaDSCR in AlaskaDSCR in ArkansasDSCR in ColoradoDSCR in ConnecticutDSCR in District of ColumbiaDSCR in DelawareDSCR in FloridaDSCR in GeorgiaDSCR in HawaiiDSCR in IllinoisDSCR in IndianaDSCR in KansasDSCR in KentuckyDSCR in LouisianaDSCR in MaineDSCR in MarylandDSCR in MassachusettsDSCR in MichiganDSCR in MississippiDSCR in MissouriDSCR in New JerseyDSCR in New HampshireDSCR in New MexicoDSCR in New YorkDSCR in OhioDSCR in OklahomaDSCR in PennsylvaniaDSCR in Rhode IslandDSCR in South CarolinaDSCR in TennesseeDSCR in TexasDSCR in VirginiaDSCR in WashingtonDSCR in West VirginiaDSCR in WisconsinDSCR in Wyoming
FAQ

DSCR loan questions, answered

The questions investors ask us most — plus the exact answers we give on the phone.

What is a DSCR loan?

A business-purpose investment property mortgage that qualifies you based on the property's rental cash flow (Rent ÷ PITIA) instead of your personal income. No tax returns required.

What DSCR ratio do I need?

Most programs need DSCR ≥ 1.00; best pricing at 1.20–1.25+. Some lenders (us included) offer No-Ratio DSCR down to 0.75 with a larger down payment and rate premium.

How is DSCR calculated?

DSCR = Gross Monthly Rent ÷ PITIA. PITIA is Principal + Interest + Taxes + Insurance + HOA. If rent is $2,650 and PITIA is $2,198, your DSCR is 1.21.

Do I need to show tax returns?

No. DSCR loans are business-purpose loans; personal income docs are not required. This is exactly why full-time and self-employed investors use them.

What credit score do I need?

660 is the floor on most programs; 720+ gets best pricing. Story-based approvals are possible down to 620 with 30%+ down.

How much do I need to put down?

20% down on purchase (up to 80% LTV) on strong DSCR + credit files; most files land at 20–25% down. 85% LTV is an exception reserved for 740+ FICO borrowers on an SFR with a 30-year fixed and a 3-year prepay. Cash-out refinance caps at 70–75% LTV.

Can I close in an LLC?

Yes — LLC, LP, S-Corp, C-Corp, and Series LLC are all standard vesting options with no rate premium. A personal guaranty is typically required.

Can I use short-term rental (Airbnb) income?

Yes on many programs. We use 12 months of PMS actuals when available, otherwise AirDNA or Rabbu projections with a 20–25% vacancy discount.

Does personal DTI matter?

On most DSCR programs, no. Personal debts are not counted against you. A light reasonableness check applies on a few programs but no formal DTI is calculated.

How fast can a DSCR loan close?

21–30 calendar days is standard. Clean files with cooperative appraisers close in 15 business days.

Are there prepayment penalties?

Standard is a 3–5 year step-down (5% year 1, 4% year 2, etc.). Shorter or zero-prepay options are available at a rate premium.

Does DSCR count against Fannie's 10-property limit?

No. DSCR loans are non-conforming and don't report the same way, so you can scale to 20, 50, or 100+ doors without hitting the conforming cap.

Can I do a cash-out refinance?

Yes — typically to 75% LTV on 1–4 unit and 70% on 5–10 unit. Great for BRRRR investors pulling capital out after stabilization.

How much higher are DSCR rates?

Typically 1.00%–2.00% above a comparable owner-occupied conforming loan, depending on FICO, LTV, DSCR, and prepayment structure.

Can foreign nationals get DSCR loans?

Yes. See our Foreign National program — 25%+ down (up to 75% LTV on purchase; 70% on cash-out), passport ID, no US credit required.

Which calculators should I run before financing a rental?

Start with the DSCR calculator to test rent against the payment, then the cap rate calculator for the unlevered yield, the cash-on-cash return calculator for the levered year-one return, and the ARV calculator when the plan involves a rehab. All outputs are illustrative estimates, not an approval, an offer of credit, or a commitment to lend.

Do the calculators work for every state?

No. Results are shown only for the states where we arrange financing, where Simply Approved Mortgages LLC arranges business-purpose investment property financing. Selecting any other state withholds results — the check runs on our servers and fails closed.

Can I share or save my calculator results?

Yes. Every calculator produces a share link that encodes the scenario inputs only — names, emails, phone numbers, and addresses are never included — plus a copy-to-clipboard summary of the key numbers you can paste into an email or a deal memo.

What is Simply AI and can it approve my loan?

Simply AI explains the figures already shown on the page in plain English. It provides educational explanations only, does not quote rates, does not confirm eligibility, and cannot approve financing. Rates, eligibility, fees, and terms are subject to verification and change — speak with a licensed loan originator before making a financing decision.

Simply Approved Mortgages Expert Insight
Last reviewed

How We Evaluate This Scenario

A DSCR file is judged on the property, not your tax returns: qualifying rent divided by PITIA — principal, interest, taxes, insurance, plus HOA and flood where they apply. Most programs use the lesser of the in-place lease rent and the appraiser's market rent, so a lease signed below market usually caps the ratio no matter how strong the comps look.

Three inputs move the outcome more than anything else: rent support on the appraiser's rent schedule (Form 1007 or 1025), the LTV tier, and the credit tier. Dropping leverage by five points or moving up a FICO band frequently changes pricing more than shopping a different lender does.

Before you write an offer, price taxes and insurance at post-sale levels rather than the seller's current bill. In reassess-on-transfer states and in coastal insurance markets, that single adjustment is the most common reason a deal that penciled at contract fails the ratio at underwriting.

Reviewed by Simply Approved Mortgages · NMLS #2620881. Business-purpose investor lending only.

Authoritative sources

Government & regulatory references

Independently verify program rules and consumer protections.

Keep exploring

Related programs & tools

DSCR Calculator →

Run your ratio before you make an offer.

Foreign National Loans →

DSCR for non-US investors — passport ID, no US credit needed.

Airbnb / STR Loans →

Qualify with nightly-rental revenue, not long-term rent.

Fix & Flip Loans →

Short-term rehab capital that rolls into a DSCR takeout.

Portfolio Rental Loans →

Wrap 5+ rentals into one blanket DSCR.

Current investor rate bands →

Indicative pricing by program & tier.

Important disclosures

Not a commitment to lend. All loan terms, interest rates, APRs, points, fees, LTV limits, DSCR thresholds, reserve requirements, program guidelines, and eligibility criteria shown on this page are for informational and illustrative purposes only. They are indicative, not guaranteed, and are subject to change at any time without notice based on market conditions, investor overlays, and individual borrower and property qualification. Final terms are only established in a written loan estimate, pricing feedback, or commitment letter issued after underwriting review.

Rates & pricing. Any rates, spreads, or benchmark data displayed — including live-feed data from public sources such as FRED — reflect general market conditions at the time of retrieval, not a rate offered to you. Your actual rate depends on credit score, DSCR, LTV, loan amount, property type, occupancy, state, prepayment structure, lock period, and market movement at time of lock.

Tools & calculators. Calculators (including the DSCR calculator, cash-to-close estimator, rent estimates, HUD FMR lookups, AVM values, and eligibility checkers) produce estimates from the data you enter and third-party sources. They do not constitute an appraisal, valuation, market rent determination, underwriting decision, tax advice, or legal advice.

Program-specific. DSCR is a business-purpose product and is not subject to consumer mortgage disclosures (TRID/RESPA). DSCR calculations shown on this page are illustrative only and use the inputs you enter. Actual qualifying DSCR, LTV, reserve, and rate outcomes depend on the appraisal, market rent (1007), lease, credit, entity structure, property type, state, and investor overlays in effect at lock.

Business-purpose only. DSCR loans are made exclusively for business, commercial, or investment purposes. They are not for personal, family, or household use, and the subject property may not be occupied by the borrower or their family. Business-purpose loans are exempt from most consumer mortgage protections including TILA, RESPA, and the ATR/QM rule.

Licensing & geography. Simply Approved Mortgages LLC | NMLS #2620881 · Florida Mortgage Broker License #MBR7685 | Colorado Mortgage Company Registration. Simply Approved Mortgages LLC is a mortgage broker and is not a direct lender. We arrange residential mortgage loans in Florida and Colorado. Business-purpose loan products may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions. Eligibility, terms, conditions, and availability vary by borrower, property, lender, loan program, and state. Not all products or programs are available in all states. All loans are subject to lender underwriting and approval. Equal Housing Opportunity. See our licensing page.

Third-party content. Testimonials shown are illustrative scenarios unless otherwise noted and do not guarantee future results. Links to third-party sites (FRED, HUD, FinCEN, IRS, state regulators) are provided for reference and are not endorsements.

This page is maintained by Simply Approved Mortgages and is intended as general information about our loan programs. It is not legal, tax, or financial advice. Consult a qualified professional for advice specific to your situation.

Investor tools & comparisons

Run the numbers on your DSCR deal

Free calculators for the metrics underwriting actually looks at, plus side-by-side deal comparisons. All outputs are illustrative estimates and are not an approval, offer of credit, or commitment to lend.

Rental property deal analyzer

Whole-deal underwriting: PITIA, DSCR, NOI, cap rate, cash-on-cash and refinance proceeds.

DSCR calculator

Test rent against PITIA and see the ratio a lender underwrites to.

Cash-on-cash return calculator

Year-one levered return on the cash you actually put into the deal.

Cap rate calculator

NOI, unlevered yield, and implied value at your target cap rate.

ARV calculator

Comp-based after-repair value with the 70% rule and profit projection.

BRRRR calculator

Model the rehab loan and the DSCR refinance in one place.

Rent needed for DSCR

The monthly rent required to reach a 1.00, 1.10 or 1.25 ratio.

DSCR payment calculator

Full monthly PITIA — principal, interest, taxes, insurance and dues.

LTV & equity calculator

LTV, CLTV, equity, and proceeds available at your target leverage.

Cash-out refinance calculator

Proceeds, new payment, DSCR impact and break-even in months.

Closing cost calculator

Cash to close: fees, prepaids, escrow reserves and credits.

Interest-only vs amortizing

Cash flow, DSCR and principal paydown side by side.

Prepayment penalty calculator

Cost of a step-down prepay at your planned exit year.

Best rental markets

Investor metrics for the markets where we arrange financing.

Deal comparisons

Program availability, leverage, and terms vary by state and program. Business-purpose, non-owner-occupied investment property only; owner-occupied use is not supported. Simply Approved Mortgages LLC is a mortgage broker and arranges — but does not make — loans. Equal Housing Opportunity.

Free with your application

Get your DSCR Scenario Summary.

Complete the short pre-qualification form and we send back a full DSCR analysis: HUD Fair Market Rent, AVM value, calculated DSCR, PITIA breakdown, and the max qualifying loan amount up to 80% LTV.

  • HUD FMR rent estimate for the subject property
  • AVM property value + max qualifying loan
  • Calculated DSCR with PITIA breakdown
  • Cash-on-cash and year-one cash flow
Get Your Personalized Rate QuoteTakes ~3 minutes • PDF delivered on the thank-you page and emailed

Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.

Investor pre-approval

Get your personalized investor loan quote

Pick the loan type that fits your deal and complete a short, tailored pre-qualification. A licensed loan officer follows up with an initial scenario review once we have your credit authorization and supporting documents — usually the same business day. Formal pricing and terms follow underwriting.

Pick a loan type

You can change this any time.

Tell us about your scenario

The form below is tailored to DSCR rental loan — only the questions your program needs.

1
Your info
2
Your deal
Your deal — the basics

Purchase or refinance a rental. The property's rent qualifies the loan.

What's your goal?
Purchase price ($)$450,000
$
Down payment (%)20%
%
Monthly rent ($)$2,800
$
HUD Fair Market Rent for your ZIP — ballpark only. Get a precise market rent after you submit.
Estimated credit rating

A soft self-estimate — no credit pull happens here.

This is a pre-qualification request — not a loan application under TILA/RESPA and not a loan approval, rate lock, offer, or commitment to lend. It does not trigger a Loan Estimate. If your loan requires one, the Loan Estimate is issued inside our loan origination system after you submit a complete application and your loan officer has reviewed your scenario.

Encrypted and never sold. Takes about 60 seconds.

Your answers save as you go. A licensed loan officer typically follows up the same business day · Simply Approved Mortgages LLC, NMLS #2620881.

Credit & pre-approval

Why we pull credit for your investor loan pre-approval

Every DSCR / business-purpose loan file needs a tri-merge credit report so we can verify identity, price your rate tier accurately, and confirm reserves and payment history for the underwriter. Cleaner credit typically unlocks a better rate and higher leverage.

Pay for your credit report — SmartPay

Simply Approved Mortgages uses MeridianLink SmartPay to securely collect the credit report fee for your investor pre-approval. Payment goes directly to the credit vendor — not to us — and unlocks your tri-merge report (Equifax, Experian, TransUnion) so your loan officer can price your file.

  • Secure, PCI-compliant checkout hosted by MeridianLink
  • Required for a formal investor pre-approval decision
  • Soft-touch process — your loan officer will guide you through it
Pay for credit report securely

You'll be redirected to cic.cra.xedalink.net (SmartPay).

Check your credit first — $1 trial at MyITINCredit

Before you apply, it's smart to know exactly where your credit stands. MyITINCredit offers a $1 trial for 15 days that includes all three credit reports and scores (Equifax, Experian, TransUnion), plus ongoing credit monitoring so you can catch errors, dispute inaccuracies, and watch for identity theft.

  • See all 3 bureau reports & scores before your lender does
  • Ongoing monitoring alerts you to new accounts or score changes
  • Fix errors early — cleaner credit can widen your investor loan options
Start $1 / 15-day trial

You'll be redirected to myitincredit.com. Third-party service — terms apply.

Credit report fees are paid directly to the credit vendor. Simply Approved Mortgages does not profit from the credit pull. MyITINCredit is an independent third-party service; pricing, terms, and features are set by that provider.

Investor newsletter

DSCR rates, market shifts, and program changes — in your inbox.

Periodic investor updates: rate movement, guideline and program changes, and market data refreshes. No spam, unsubscribe anytime.

  • DSCR rate snapshots
  • Program & guideline updates
  • Illustrative investor scenarios
  • Market data notes
Get the investor update
Investor newsletter

Periodic DSCR rate updates, market data refreshes, and program changes. No spam, and we never sell your address.

I agree to receive periodic investor market and program update emails from Simply Approved Mortgages LLC. I can unsubscribe at any time. Submitting this form records your consent and the page you signed up from. It is not a loan inquiry and does not start an application.

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