DSCR loans in Colorado and 35 more states.
Qualify on the property's rental income — not your tax returns. Close in an LLC. 20–25% down. Long-term and short-term rental friendly.
Rental income qualifies
No W-2s, no tax returns, no DTI.
Close in an LLC
Hold title in your business entity.
STR-eligible
Airbnb / VRBO income counts on most shelves.
No portfolio cap
Stack unlimited DSCR loans across properties.
How DSCR is calculated
DSCR is the simplest qualifying math in mortgage lending — the property's rent divided by its full monthly payment.
- 1.25+Strong. Best pricing on most shelves.
- 1.00–1.24Qualifies. Standard rate.
- 0.75–0.99Marginal. Rate add-on ~0.25–0.75%.
- < 0.75Below threshold. Needs more down or a different program.
DSCR calculator
Monthly rent ÷ monthly PITIA (principal + interest + taxes + insurance + association dues).
Program guidelines at a glance
Rough guidelines only — actual qualification depends on the full loan file (credit depth, reserves, property type, occupancy, and investor overlays). We'll confirm your exact numbers in writing.
| Guideline | Long-Term Rental DSCR 12+ month leases | Short-Term Rental DSCR Airbnb / VRBO income |
|---|---|---|
| Min FICO | 660 typical · 620 with larger down | 680 typical |
| Min down payment | 20% (DSCR ≥ 1.0) · 25% if DSCR < 1.0 · 15% with 740+ FICO on select shelves | 20%–25% · 30% in some resort markets |
| Max LTV (purchase) | 80% standard | 75%–80% |
| Max LTV (cash-out refi) | 75%–80% | 70%–75% |
| Reserves | 3–6 months PITIA | 6 months PITIA |
| Min DSCR | 1.0 typical · 0.75 with rate add-on | 1.0 using AirDNA projection · 12-mo statements on existing STRs |
| Rate range (vs conventional) | +0.75% to +1.25% above conv. investment pricing | +1.0% to +1.75% above conv. investment pricing |
| Doc type | No income docs, no tax returns, no DTI calc | AirDNA projection OR 12 months of platform statements |
| Entity | LLC / partnership / corp · personal guaranty usually required | LLC closings welcome |
| Property types | SFR, condo, townhome, 2–4 unit | SFR, condo, townhome (STR-zoned only) |
| Prepay penalty | 3, 5, or 7-year · can be bought down | Standard 3–5 year structures |
Long-Term Rental DSCR
12+ month leases
- Min FICO
- 660 typical · 620 with larger down
- Min down payment
- 20% (DSCR ≥ 1.0) · 25% if DSCR < 1.0 · 15% with 740+ FICO on select shelves
- Max LTV (purchase)
- 80% standard
- Max LTV (cash-out refi)
- 75%–80%
- Reserves
- 3–6 months PITIA
- Min DSCR
- 1.0 typical · 0.75 with rate add-on
- Rate range (vs conventional)
- +0.75% to +1.25% above conv. investment pricing
- Doc type
- No income docs, no tax returns, no DTI calc
- Entity
- LLC / partnership / corp · personal guaranty usually required
- Property types
- SFR, condo, townhome, 2–4 unit
- Prepay penalty
- 3, 5, or 7-year · can be bought down
Short-Term Rental DSCR
Airbnb / VRBO income
- Min FICO
- 680 typical
- Min down payment
- 20%–25% · 30% in some resort markets
- Max LTV (purchase)
- 75%–80%
- Max LTV (cash-out refi)
- 70%–75%
- Reserves
- 6 months PITIA
- Min DSCR
- 1.0 using AirDNA projection · 12-mo statements on existing STRs
- Rate range (vs conventional)
- +1.0% to +1.75% above conv. investment pricing
- Doc type
- AirDNA projection OR 12 months of platform statements
- Entity
- LLC closings welcome
- Property types
- SFR, condo, townhome (STR-zoned only)
- Prepay penalty
- Standard 3–5 year structures
Short-term vs long-term rental DSCR
Both qualify on the property's income — but the underwriting, documentation, and pricing differ.
Long-Term Rental (LTR)
Qualifies on the lower of the in-place lease or the market rent from a 1007 appraisal addendum.
- Lower rates than STR shelves
- 3–6 months reserves
- Works in any market — no STR-zoning required
- Simpler underwrite — most files close in 21 days
Short-Term Rental (STR)
Qualifies on AirDNA projection (new acquisitions) or 12 months of Airbnb/VRBO statements (existing STRs).
- Higher gross income unlocks better DSCR
- 6 months reserves required
- Address must be STR-zoned / licensed
- Slightly higher rate and down payment
DSCR loans by state
We originate DSCR investor loans in 36 states. Tap any state for local markets, STR rules, and quick-quote.
Tennessee available with restrictions on some shelves. Don't see your state? Our lender network is constantly expanding — reach out.
DSCR loan FAQs
What is a DSCR loan?+
A DSCR (Debt Service Coverage Ratio) loan is an investor-focused mortgage that qualifies you based on the property's rental income — not your personal W-2s, tax returns, or DTI. If the rent covers the mortgage payment, you can typically qualify.
How is the DSCR ratio calculated?+
DSCR = monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance, and any HOA / association dues). A DSCR of 1.0 means rent exactly covers the loan payment; 1.25 means rent is 25% above the payment.
What DSCR ratio do I need to qualify?+
Most lender shelves require 1.0 or higher for standard pricing. Several investor programs allow ratios down to 0.75 with a rate add-on (~0.25%–0.75%). Below 0.75 typically requires more down payment or a different program.
How much down payment is required?+
20–25% down is the standard range. Stronger borrowers (740+ FICO, 1.25+ DSCR, 6+ months reserves) can sometimes unlock 15% down on select shelves. Short-term rental loans usually require 25% down minimum.
What are DSCR loan rates?+
DSCR rates typically sit 0.75%–1.75% above conventional investment-property rates, depending on FICO, LTV, DSCR ratio, and STR vs LTR. Prepayment penalty buy-downs and stronger ratios reduce the spread. We shop your file across 15+ DSCR lenders to find the best margin.
Can I close in an LLC?+
Yes — DSCR loans are designed for investors and routinely close in the name of an LLC, partnership, or corporation. A personal guaranty is usually still required, but title and reporting stay clean.
Do DSCR loans work for short-term rentals (Airbnb / VRBO)?+
Yes. Many DSCR shelves allow STR income to qualify — usually documented with an AirDNA market projection for new acquisitions, or 12 months of platform statements on existing STRs. STR shelves have slightly higher rates and stricter reserves.
What credit score do I need?+
Most shelves start at 660–680 FICO. 620 may be possible with larger down payments and stronger reserves. Best pricing kicks in at 740+.
How many DSCR loans can I have?+
There is generally no limit on the number of DSCR loans an investor can hold — unlike conventional financing, which caps you at 10 financed properties total.
Is there a prepayment penalty?+
Yes, most DSCR loans carry a prepayment penalty — typically 3-, 5-, or 7-year structures. You can buy it down or eliminate it in exchange for a higher rate. We model both options for you upfront.
How fast can a DSCR loan close?+
We routinely close DSCR purchases in 21–30 days. Refinances often go faster (15–25 days) because there's no appraisal coordination with a seller.
Get a DSCR loan quote
Tell us about the property — we'll send back a rate, terms, and max loan amount within one business day.