DSCR Loans
Rental Property Loans Based on Income, Not Yours
DSCR stands for Debt Service Coverage Ratio. It is the only loan product designed specifically for rental property investors. If your property's rent covers the mortgage, you qualify. No tax returns. No income verification. No property count limits.
The Basics
What Is a DSCR Loan?
A DSCR loan measures one thing: does the rental income from the property cover the mortgage payment? If yes, you qualify. It is that simple.
The DSCR ratio is calculated by dividing the monthly rent (adjusted for a vacancy factor) by the total monthly mortgage payment including principal, interest, taxes, and insurance. A ratio of 1.0 means the rent exactly covers the payment. Above 1.0 means positive cash flow. The higher the ratio, the stronger the deal.
Because DSCR loans qualify on property income rather than personal income, they eliminate the biggest obstacles investors face with conventional financing: tax return documentation, debt-to-income ratio limits, and property count caps. See how the process works.
DSCR Formula
DSCR = Monthly Rent / Monthly PITIA
PITIA = Principal + Interest + Taxes + Insurance
1.25+ = Strong (up to 85% LTV)
1.00+ = Qualified (up to 75% LTV)
0.75+ = Specialty program available
Programs
Three Ways to Use a DSCR Loan
Purchase
Buy a new investment property using projected rental income to qualify. No income documentation required. Available for single-family, 2-4 unit, 5-10 unit, condos, and short-term rentals.
Up to 85% LTV · Min loan $75K · Close in as few as 21 days
Cash-Out Refinance
Access your property equity without proving personal income. Full cash-out available after 6 months of ownership. Limited cash-out options available as early as 3 months. Ideal for BRRRR investors recycling capital into the next deal.
Up to 75% LTV · 6+ months for full cash-out · No seasoning headaches
Rate and Term Refinance
Lower your rate or adjust your loan terms on an existing rental property. Available from day one of ownership. Minimal documentation and fast processing.
Up to 85% LTV · Available immediately · 21-day average close
Requirements
Who Qualifies for a DSCR Loan?
Credit Score
Minimum 660. Best rates at 740+. If borrowing through an LLC, the majority owner (51%+) must meet the credit minimum.
Down Payment
Minimum 15% down for purchases (85% LTV). Cash-out refinances require 25%+ equity. More equity means better rates.
Cash Reserves
6 months of PITI reserves in an accessible account. Checking, savings, IRA, or 401k all count.
Experience
Must have owned an investment property for 12 months in the last 3 years. Or 12 months of on-time mortgage payments on a primary residence.
Property Type
1-4 unit single-family (primary program). 5-10 unit residential (separate program). Condos and short-term rentals eligible. No commercial, mixed-use, or rural.
Entity
Close in your personal name, LLC, trust, or corporation. Entity structure affects your rate through loan-level pricing adjustments.
Not sure if you qualify? Run your numbers in the DSCR calculator or learn more about us.
Comparison
DSCR vs. Conventional Loans
| Feature | DSCR Loan | Conventional |
|---|---|---|
| Income Verification | None. Property income qualifies. | Full W-2s, tax returns, pay stubs |
| DTI Requirement | None | Must be under 43-50% |
| Property Limit | No limit | Limited property count |
| Close in LLC | Yes | No. Personal name only. |
| Closing Speed | 10-21 days | 30-45 days |
| Max LTV | Up to 85% | 75-80% for investment |
| Loan Term | 30-year fixed available | 15-20 year max for rentals |
| Best For | Investors scaling a portfolio | Primary residence or first rental |
| Reserve Requirement | 6 months PITI | 2-6 months varies |
| Credit Score Minimum | 660 | 620-680 varies |
Markets
Where We Lend
RentRefi serves investors in Missouri, Illinois, and Kansas as our primary markets. We also work with investors in most US states except Nevada, South Dakota, and North Dakota.
Kansas City
Missouri
St. Louis
Missouri
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