DSCR loan requirements
DSCR loan requirements have two parts: the figures a lender posts and the documents it requests after the numbers work.
The published DSCR loan requirements
| Requirement | What lenders publish | Lender and source |
|---|---|---|
| Minimum DSCR | No minimum to 1.10 | Easy Street Capital has no minimum; New Silver has 0.75; Lima One Capital has 1.00; Kiavi requires 1.10 to prequalify |
| Credit score | 640 to 660 | Easy Street Capital: 640; New Silver: 660 |
| Down payment | 20% on a purchase | 20% is listed by Easy Street Capital, while up to 80% LTV is listed by Lima One Capital. |
| Cash-out LTV | Up to 75% | Lima One Capital |
| Loan size | From $100,000 | Easy Street Capital |
| Property value | From $125,000 per property | Lima One Capital |
These figures are minimums rather than guarantees. A lender that posts 1.00 may still ask for 1.20 when the property is a condo or a first rental. A 640 score often means a larger down payment or a higher rate. Each figure appears on a source page linked through our DSCR lenders listing.
DSCR loan down payment
For a purchase at the strongest terms, expect a down payment of 20%. A condo, a small multifamily property, a lower score or a ratio near 1.00 each mean 25% or more. A larger down payment lowers both the loan and PITIA and raises the ratio, so each of the two requirements affects the other. Use our DSCR loan calculator to enter any payment and see the ratio.
Documents that a DSCR lender asks for
One option is a signed lease. For an empty unit, the other option is an appraisal with a rent schedule. The tax bill, or the county's tax estimate. A quote for landlord insurance; on the same house, that premium usually comes in above a homeowner policy.
Bank statements support reserves, closing costs and the down payment requirements. Many lenders ask you to keep back 3 to 6 months of PITIA. You also need a credit report. For a loan closing in a limited liability company (LLC), provide its articles, operating agreement and tax number, together with the owner's personal guarantee.
Things a DSCR lender does not ask for
Pay slips and W-2 forms are not requested, and personal tax returns usually are not either. The reason is that rent replaces your income in the decision. That is the main reason owners with several rental properties and self-employed buyers select this financing. The trade-off means a higher rate and stricter property terms. Both appear in our DSCR loan pros and cons guide.