Long-term rental
DSCR loans for rental property
A 30-year loan on a single rental, qualified on what the property rents for. No tax returns, W-2s or pay stubs.
- Qualify on the rent, not your income
- Up to 80% LTV on purchases
- 30 years, fixed, ARM or interest-only
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DSCR rental loan terms
- Loan amount
- $75K – $2M
- Purchase or rate-and-term
- Up to 80% LTV
- Cash-out refinance
- Up to 75% LTV
- DSCR minimum
- 1.05 rent divided by the monthly payment
- Term
- 30 years fixed, 5/6, 7/6 or 10/6 ARM, interest-only options
- Income documents
- None no tax returns, W-2s or pay stubs
- Prepayment
- Your choice 5, 4, 3 or 1 year, or none, where state law allows
- Credit score
- From 660 700+ for 80% LTV
Program maximums for non-owner-occupied 1–4 unit rentals held in an LLC or corporation. Not a commitment to lend. Program guidelines current as of November 2026.
What is a DSCR loan?
A DSCR loan is a long-term investment property loan that qualifies on the debt-service coverage ratio: the property’s monthly rent divided by its monthly payment of principal, interest, taxes, insurance and HOA (PITIA). If the rent covers the payment at a ratio of 1.05 or better, the property qualifies. Your personal income isn’t part of the decision.
Rent is the lower of the lease and the appraiser’s market rent. Buying a vacant property? The appraiser’s market rent is used.
How to calculate DSCR
One example rental:
| Example rental | Monthly |
|---|---|
| Rent (lower of lease and market rent) | $3,200 |
| Principal and interest | $2,250 |
| Property taxes | $420 |
| Insurance | $130 |
| HOA | $0 |
| PITIA | $2,800 |
| DSCR = $3,200 ÷ $2,800 | 1.14, above the 1.05 minimum |
Illustration only.
Maximum loan-to-value by credit score
Leverage depends on credit, not experience. First-time landlords qualify.
| Credit score | Purchase | Rate-and-term refinance | Cash-out refinance |
|---|---|---|---|
| 700 and above | 80% | 80% | 75% |
| 680–699 | 75% | 75% | 70% |
| 660–679 | 65% | 65% | 60% |
| Foreign nationals | 65% | 65% | 60% |
DSCR loan requirements
- A DSCR of 1.05 or higher: monthly rent divided by PITIA
- Credit score 660+ (700+ for the full 80% LTV)
- Your LLC or corporation borrows; every owner with 20% or more signs a guarantee
- A 1–4 unit rental in good condition; a 12-month lease on a single-family refinance (vacant purchases use market rent)
- Two consecutive statements showing closing costs plus 3 months of payments (6 on a refinance)
- Entity documents: articles, EIN letter, operating agreement, certificate of good standing
DSCR loan pros and cons
Pros: no tax returns, W-2s or pay stubs; the loan closes in your LLC; first-time landlords qualify; 30-year terms with fixed, ARM and interest-only options; you choose the prepayment option, including none.
Cons: the property has to carry its own payment, rates are usually higher than on a conventional loan for a home you live in, leverage tops out at 80%, and you need cash reserves at closing.
Send me the rent first
Send me the address, the price or value, the rent and the taxes and insurance. I’ll run the DSCR and tell you how much the property supports before you pay for an appraisal.
Questions about DSCR loans
Do I need tax returns for a DSCR loan?
No. The loan qualifies on the property’s rent, not your personal income.
What DSCR do I need?
1.05 or higher: rent at least 5% above the monthly payment.
Can I buy a vacant rental?
Yes. The appraiser’s market rent is used to qualify.
How soon can I do a cash-out refinance?
After 90 days of ownership. Between 91 and 180 days, the new value counts when you show the completed renovation.
Can foreign nationals get a DSCR loan?
Yes, up to 65% LTV with 12 months of payments in reserve. More on DSCR loans for foreign nationals.
What credit score do I need for a DSCR loan?
660 minimum; 700 or higher gets the full 80% LTV.
Is a DSCR loan a hard money loan?
No. A DSCR loan is a long-term, 30-year loan. Many investors use a short-term hard money loan to buy and renovate, then refinance into a DSCR loan once the property is rented.
DSCR loan or conventional loan?
A conventional loan qualifies on your personal income and tax returns. A DSCR loan qualifies on the rent and closes in your LLC, which suits self-employed investors and anyone with several properties.
Is there a prepayment penalty?
Your choice: a five, four, three or one-year penalty, or none.
What properties qualify?
Single-family homes, 2–4 unit properties, townhomes and warrantable condos rented on 12-month or longer leases. For a short-term rental or a property this program doesn’t cover, see DSCR loans at West Coast Capital Mortgage.
I have several rentals. Is there one loan for all of them?
Yes, a rental portfolio loan covers 2 to 10 properties.
Do I need an LLC or corporation?
Yes. Your LLC or corporation is the borrower, and you can form the entity before closing.
Which states do you lend in?
Many states. California, Florida and Texas are our main markets; for a property anywhere else, check availability: tell us the state and the loan you need, and we’ll confirm what’s available.
Other loan programs
Buying or refinancing a rental?
Send the address, the price or value, and the rent. You’ll hear the DSCR and how much the property supports.