DSCR Loan Programs Explained (30-Year, Interest-Only, No-DSCR)
Not all DSCR loans are the same — the right program depends on your property, your credit, and your investment strategy. Here’s how DSCR programs break down.
Standard DSCR (1.0+ Ratio)
The workhorse program. Qualifies when monthly rent covers or exceeds the full PITIA payment. Available up to ~80% LTV on strong profiles with credit scores starting around 620–660. Works for single-family, 2–4 unit, condos, and most long-term rentals.
No-Ratio DSCR
No income or rent documentation required — the property qualifies on its value and the borrower’s credit alone. Ideal when rent doesn’t cover the payment or a lease isn’t in place yet. Typically requires stronger credit (700+) and a larger down payment as the trade-off for removing the income test.
Short-Term Rental (STR) DSCR
Allows Airbnb or VRBO projected income in the DSCR calculation rather than long-term market rent. STR-eligible programs are available on select properties where the STR income projection is supportable. Confirm eligibility before choosing a property — not all DSCR programs allow STR income. More on STR DSCR loans.
Interest-Only DSCR
An interest-only payment structure reduces the monthly payment used in the DSCR calculation, which can lift the ratio and improve qualifying leverage. Useful on properties where cash flow is tight or you want to maximize monthly returns during the IO period.
DSCR for LLCs
Most DSCR programs support closing in an LLC or other business entity — important for investors who hold properties in corporate structures for liability and tax purposes. Confirm entity vesting support at the start of your application. More on DSCR loans for LLCs.
Which Program Is Right for You?
The best program depends on your DSCR ratio, credit, property type, and whether the property is long-term or short-term rental. Get a scenario review and we’ll match you to the right structure.
