What credit score do I need for a DSCR loan?

The minimum credit score for DSCR loans is 620, though higher scores qualify for better rates. Scores of 720+ receive the most competitive pricing.

How much down payment is required for DSCR loans?

DSCR loans require a minimum 15% down payment (85% max LTV). Higher down payments result in better rates and terms.

What documents do I need for a DSCR loan application?

Required documents include: 2 months bank statements, LLC formation documents, rent roll or lease agreements, property tax records, insurance quote. No tax returns or income verification required.

DSCR Loan Requirements | Credit Score, Down Payment & Documents

Basic Qualification Requirements

Credit Score

Minimum 620 FICO score required. Higher scores receive better pricing:

780+: Best rates available
740-779: Excellent pricing
700-739: Good pricing
660-699: Standard pricing
620-659: Higher rates

Down Payment

Minimum 15% down payment required (85% max LTV).

Lower LTV = Better Rates

75% LTV: Best pricing tier
80% LTV: Standard pricing
85% LTV: Higher rates

DSCR Ratio

Minimum 0.75 DSCR (rental income ÷ total payment).

Higher DSCR = Better Rates

1.25+ DSCR: Tier 1 pricing
1.00-1.24: Tier 2 pricing
0.75-0.99: Tier 3 pricing

Property Type

Non-owner occupied investment properties only:

Single-family homes (1-4 units)
Condos and townhomes
Small multifamily properties
Short-term rentals (Airbnb/VRBO)

Entity Ownership

Property must be owned in business entity:

LLC or Corporation Required

Single-member LLC acceptable
Multi-member LLC acceptable
Corporation acceptable
Personal ownership not allowed

Geographic Coverage

Available in 46 states.

Not Available: CA, AZ, NV, ID

Properties must be in eligible states
No rural or remote locations
Standard metropolitan areas preferred

DSCR Loan Requirements — Real Market Data

Aggregated across 13+ DSCR lenders and 1,263 program configurations

FICO × LTV Qualification Matrix

This table shows the maximum LTV available at each FICO level across our lender network. The down payment column shows the minimum cash required.

FICO Score	Max LTV Available	Min Down Payment	Programs Available
760+	85%	15%	12 programs
740-759	85%	15%	21 programs
720-739	85%	15%	129 programs
700-719	80%	20%	220 programs
680-699	80%	20%	369 programs
660-679	75%	25%	160 programs
640-659	75%	25%	93 programs
620-639	70%	30%	38 programs
600-619	60%	40%	9 programs

Data source: DSCRFlow lender matrix (June 2026), 13 lenders, 1,263 program rows. View full market intelligence →

DSCR Ratio Requirements

Not all DSCR loans require a 1.0+ ratio. 376 programs (30% of all programs) accept sub-1.0 DSCR or don't evaluate DSCR at all.

DSCR Minimum	Programs	% of Total	What It Means
No ratio	184	14.6%	DSCR not evaluated
0.75	292	23.1%	Allows 25% negative cash flow
1.00	711	56.3%	Break-even — rent covers debt service
1.10-1.25	68	5.4%	Requires 10-25% positive cash flow

Want to see how your LLPA pricing adjustments work?

Try the LLPA Estimator →

Required Documentation

No tax returns or income verification required

Bank Statements (2 Months)

Personal or business bank statements showing sufficient reserves (typically 2-6 months PITIA)

LLC Formation Documents

Articles of incorporation, operating agreement, and good standing certificate

Rent Roll or Lease Agreements

Current lease agreements for existing rentals or market rent analysis for new purchases

Property Tax Records

Most recent property tax bill or assessment for existing properties

Insurance Quote

Property insurance quote including hazard, wind (if applicable), and liability coverage

Purchase Contract (if applicable)

Executed purchase agreement for new acquisitions or refinance property details

Tax Returns (NOT Required)

Personal or business tax returns are NOT required for DSCR loans

Income Verification (NOT Required)

W-2s, pay stubs, or employment verification are NOT required

DSCR vs Conventional Investment Loans

Requirement	DSCR Loans	Conventional Investment
Income Verification	Not Required	Required (Tax Returns, W-2s)
Minimum Credit Score	620 FICO	640-680 FICO
Down Payment	15% minimum (85% LTV)	20-25% minimum (75-80% LTV)
Qualification Method	Property cash flow (DSCR)	Personal DTI + rental income
Entity Ownership	Required (LLC/Corp)	Personal ownership typical
Self-Employed Friendly	Ideal for self-employed	Difficult documentation
Processing Time	14-21 days to close	30-45 days to close
Short-Term Rentals	Airbnb/VRBO eligible	Generally not allowed
Rate Competitiveness	Competitive (6.5-8.5%)	Slightly lower (6.0-8.0%)
Loan Limits	Up to $5 million	Conforming limits ($766,550)

Tips to Improve Your DSCR Loan Approval

Maximize Your DSCR

Get market rent analysis to justify higher rents
Consider lower loan amounts to improve ratio
Shop for lower property taxes and insurance
Factor in all rental income (parking, storage, etc.)

Strengthen Your Financial Profile

Build up cash reserves (6+ months PITIA ideal)
Pay down existing debts to improve credit score
Avoid new credit inquiries before applying
Maintain seasoned bank account balances

Choose the Right Property

Focus on properties with strong rental demand
Avoid properties needing major repairs
Consider areas with rent growth potential
Ensure property meets conventional standards

Prepare Documentation Early

Form LLC before applying (if needed)
Gather 2+ months of bank statements
Get insurance quotes from multiple carriers
Organize all property documents in advance

DSCR Loan Requirements