DSCR loans qualify a rental on its own income, but lenders still set rules for credit, leverage, the ratio itself, reserves, and the property. Those rules differ from lender to lender, so below are the ranges you'll see across today's Non-QM lenders, and where the best terms usually sit.
Credit Score
Most DSCR lenders start somewhere between 620 and 680, and a few allow borrowers with no credit score at lower leverage. Your score mostly drives two things: the maximum loan-to-value and the price. A typical lender's grid for loans up to about $1.5 million looks like this:
| Middle score | Purchase | Rate & term | Cash-out |
|---|---|---|---|
| 720+ | Up to 80–85% | Up to 80% | Up to 75–80% |
| 700–719 | Up to 80% | Up to 75–80% | Up to 75% |
| 680–699 | Up to 80% | Up to 75% | Up to 75% |
| 660–679 | Up to 75–80% | Up to 75% | Up to 70–75% |
| 640–659 | Up to 75% | Up to 70% | Up to 70% |
| 620–639 | Up to 65% | Up to 65% | Up to 65%, where offered |
Larger loans step down. Above roughly $1.5 to $2 million, many lenders cap purchases around 70–75%. The score used is the middle of your three bureau scores.
The DSCR Itself
DSCR is the monthly rent divided by the full payment: principal, interest, taxes, insurance, and HOA. Across lenders:
- 1.20x–1.25x and up: the best pricing, and at some lenders the only way to reach the highest LTVs (for example, 85% may require 1.20x).
- 1.00x–1.19x: the standard range. Full program options at most lenders.
- 0.75x–0.99x: allowed by many lenders, usually with a lower maximum LTV and sometimes a higher score.
- No ratio: some lenders have no minimum at all, commonly up to about 70–75% on a purchase and 65–70% on a refinance. See no-ratio DSCR loans.
Which rent counts: on a purchase, lenders typically use the appraiser's market rent (Form 1007 or 1025). On a rented property, it depends on the lender: some use the lower of the lease and market rent, and some allow a higher lease if you can show it's being paid.
Down Payment
Most DSCR purchases need 20–25% down. With a strong score and a strong ratio, some lenders go to 15% down (85% LTV). Programs below 1.0x, no-ratio loans, short-term rentals, condotels, and first-time homebuyers usually need 25–30% or more.
Reserves
Reserves are months of the full payment you still have after closing. Requirements vary more than almost anything else:
- Common baseline: about 2–6 months for loans up to roughly $1–1.5 million
- More for larger loans: often 6–12 months as loan size rises
- More for special cases: first-time homebuyers, interest-only, vacant properties, and higher LTVs often need 6 months or more
Checking, savings, and investment accounts usually count, and retirement accounts usually count at a discount. Some lenders also let cash-out proceeds count toward reserves.
Loan Size
Minimums usually fall between $75,000 and $150,000. Maximums for single properties commonly run to $2–3 million or more. Very small loans can carry lower maximum LTVs or higher pricing.
Property Types
- Single-family homes, townhomes, and PUDs: the best terms
- 2–4 units: widely allowed, sometimes with a slightly lower maximum LTV (see DSCR loans for 2–4 units)
- Warrantable and non-warrantable condos: many lenders allow both; non-warrantable often caps around 75–80%
- Condotels: allowed by some lenders at lower LTVs
- Short-term rentals: often up to 75% on a purchase (see short-term rental loans)
- Rural properties and manufactured homes: allowed by some lenders, with lower LTVs and higher score minimums
- 5–10 units: usually a separate small-multifamily program
Some lenders reduce the maximum LTV in declining markets or in specific states, such as for condos in Florida.
Experience and First-Time Buyers
Most DSCR lenders don't require you to have owned rentals before. The bigger restriction is for first-time homebuyers, meaning borrowers who don't currently own a home. Those files often need a higher score (around 700), a lower LTV (around 70%), a higher DSCR (around 1.15x), and more reserves. Some lenders don't allow them at all. See DSCR loans for first-time investors.
Credit History
Lenders look at recent late mortgage payments and major credit events. A rough picture: a bankruptcy, foreclosure, or short sale more than 24–36 months ago often has little effect, one 12–24 months ago usually caps leverage around 65–75%, and one in the last 12 months is usually ineligible.
Borrowing in an LLC
Most DSCR lenders allow an LLC, and many also allow corporations, partnerships, or trusts. Pricing for entity loans is often the same as for personal loans. Expect to provide:
- Articles of organization and operating agreement
- EIN letter and a certificate of good standing
- A personal guarantee from the members
For more on guarantees, multi-member LLCs, and moving title into an entity, see DSCR loans for LLCs.
Pre-Application Checklist
- Know your middle credit score
- Estimate rent and run the DSCR calculator
- Get a homeowners insurance quote
- Document your down payment and reserves
- Prepare LLC documents if you're buying in an entity
- Decide on a prepayment penalty structure (see how DSCR rates are priced)
Ranges, not promises: these figures reflect published guidelines from several Non-QM lenders as of October 2026. Each lender sets its own rules, so send me your scenario and I'll match it to the lender that fits.
DSCR Requirements FAQ
What is the minimum credit score for a DSCR loan?
Many lenders start at 620 at a lower LTV, most at 640–680. A few accept borrowers with no credit score at around 65% LTV.
What is the minimum DSCR ratio?
1.0x at most lenders for the best terms. Many accept 0.75x, and some offer no-ratio loans with lower LTVs.
Can a first-time investor get a DSCR loan?
Usually yes. Borrowers who don't currently own a home face tighter rules at many lenders, such as a 700 score, about 70% LTV, and a 1.15x DSCR.
How many reserves do I need for a DSCR loan?
Often 2–6 months of the full payment, and more for larger loans, interest-only, or vacant properties.
In the financial industry since 2015. Licensed loan officer in Los Angeles, California. NMLS #1493724, with UTM Financial, LLC (NMLS #2591548). More about Ivan
This article is general education, not financial, tax, or legal advice. Loan guidelines vary by lender and change often. Not a commitment to lend.