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DSCR loans for investment property.

The investor mortgage that qualifies on rent, not tax returns. DSCR loans (Debt Service Coverage Ratio) are sourced from 21 pre-vetted direct DSCR lenders on Ask Speedy. Median rate 7.4%, 21-day close, $25k–$5M+ loan range. No personal income required.

Defined

What is a DSCR loan?

A DSCR loan (Debt Service Coverage Ratio loan) qualifies the property's rental cash flow instead of the borrower's personal income. The formula:

DSCR = Net Operating Income / Annual Debt Service

A DSCR of 1.0 means rent exactly covers the loan payment. 1.25 means 25% cushion. Most direct DSCR lenders require minimum 1.0 to 1.25 — higher ratio gets better rate and higher LTV.

For ISOs and brokers, DSCR is the workhorse residential investment product. No tax returns required. No W-2 verification. Bank statements + rent roll + entity docs are the typical doc package. LLCs welcome.

Why source DSCR on Ask Speedy

21 direct DSCR lenders, ranked publicly.

21 direct DSCR lenders

All vetted before access. Funding history, capital source, licensure confirmed. No broker middlemen.

Performance leaderboard

Time-to-close, approval rate, average rate visible per lender. Easy to spot who actually funds a 620 FICO or non-warrantable condo.

Multi-lender 1-click submit

Speedy pre-underwrites to each lender's box. ISO submits to 5+ matching lenders in one click. No re-keying.

Renewal radar

Speedy tracks the DSCR loan maturity and surfaces the refi 90 days before it matters. Don't lose the renewal to a competitor.

DSCR at a glance

Direct lender terms across the platform.

Metric Range / typical
Loan range $25,000 – $5,000,000+ (resi); up to $10M+ on commercial DSCR
Rate range 6.5–8.0% (median 7.4%)
FICO floor 620 typical, 600 specialty programs
Max LTV 80% purchase, 75-80% cash-out refi
Min DSCR coverage 1.0 to 1.25 depending on lender
Term 30-year fixed or ARM (5/1, 7/1, 10/1)
Amortization 30-year typical; interest-only available
Prepayment 5/4/3/2/1 step-down typical; no-prepay programs +0.5-1% rate
Seasoning (cash-out) 0, 30, 60, or 90 days depending on lender
Time to close 21-30 days typical; 15-day expedited available
Entities accepted LLC (most common), individual, trust, partnership

Common scenarios

Where DSCR shines.

BRRRR cash-out refi

After acquisition + rehab + rent, refi out of hard money into DSCR. Pull equity for the next deal. Sequenced in Speedy.

Self-employed investors

Tax returns don't reflect true income. DSCR ignores them entirely. Property pays the loan; property qualifies.

Foreign nationals

No US tax returns. DSCR programs available with passport, ITIN, and asset verification.

Short-term rental (STR)

AirDNA-based or 12-month booking history underwriting. STR-specialized direct lenders on the platform.

Portfolio (multiple SFR)

One DSCR loan covering 5-20 rental properties. Better terms than individual loans.

Non-warrantable condos

Properties Fannie/Freddie won't buy. Specialty DSCR direct lenders handle these.

FAQ

DSCR loans, answered.

What is a DSCR loan?
A DSCR (Debt Service Coverage Ratio) loan is an investment property loan that qualifies on the property's rental cash flow rather than the borrower's personal income. DSCR = NOI / Annual Debt Service. Most direct lenders require 1.0-1.25 minimum DSCR. No tax returns, no W-2s — bank statements + rent roll are typical.
What FICO is required for DSCR?
Direct DSCR lenders on Ask Speedy have FICO floors from 620 to 680. Some specialty programs go to 600 at higher rates (8-10%) with larger down payments. Most volume is in 680-720 range at 6.5-7.5% rate.
What is the typical DSCR loan rate?
DSCR rates currently range from 6.5% to 8.0% on 30-year amortization. Median on the platform is 7.4%. Rate depends on FICO, DSCR coverage ratio, LTV, prepayment terms, and lender risk appetite.
What is the maximum LTV on DSCR loans?
Direct DSCR lenders offer up to 80% LTV on purchase and 75-80% on cash-out refinance. Lower DSCR coverage (1.0 vs 1.25) typically caps LTV lower. Stronger borrowers get higher LTV at lower rate.
Are prepayment penalties standard on DSCR?
Yes. Typical DSCR prepay is a 5/4/3/2/1 step-down or 3-year flat. No-prepay DSCR programs exist on the platform but at higher rates (often 0.5-1% premium). Important to model before refi.
Can DSCR loans be used for short-term rentals (STR)?
Yes — direct lenders specialized in STR DSCR use AirDNA or actual booking history to underwrite rent. Some lenders accept 12-month projected revenue; others require 12 months of historical bookings. STR-friendly DSCR programs are a growing niche.

DSCR deals, sourced direct.

Updated 2026-05-10