DSCR Loan Requirements – What You Need to Qualify

What Is a DSCR Loan?

A DSCR (Debt-Service Coverage Ratio) loan is a real estate investment loan underwritten primarily based on a property's income rather than the borrower’s personal finances. It’s a powerful financing tool for investors focused on long-term cash flow and rental property acquisition.

Why DSCR Loans Appeal to Real Estate Investors

Focus on Property Cash Flow Over Personal Income

Unlike traditional loans, DSCR loans evaluate the ability of the property itself to generate income sufficient to cover the debt service. This makes them ideal for self-employed borrowers and LLCs.

Ideal for Buy-and-Hold and Portfolio Growth

DSCR loans are especially useful for investors building rental portfolios, as they eliminate the need for complex income verification and streamline the qualification process.

Minimum DSCR Requirements

Common Thresholds (1.0 to 1.25 DSCR)

Most lenders require a minimum DSCR of 1.0–1.25. This means the rental income must cover at least 100–125% of the mortgage payment (including taxes and insurance). A higher DSCR often improves loan terms.

Property Eligibility Criteria

Types of Properties That Qualify

DSCR loans apply to a variety of real estate assets:

Borrower Requirements for DSCR Loans

Credit Score Guidelines

Most DSCR lenders require a credit score of 640 or above, though borrowers with higher scores typically receive better rates and lower down payment requirements.

Entity vs. Personal Borrowing

DSCR loans can be issued to individuals or business entities (LLCs, trusts). Using an LLC can offer legal and tax advantages for investors managing multiple properties.

Work with Kirill Ayzenberg to Qualify Easily

Kirill Ayzenberg offers flexible DSCR loan solutions with simplified underwriting and expert guidance. Whether you're scaling your rental portfolio or refinancing a current asset, Kirill can help you navigate the process and secure the best terms.