DSCR Loan FAQs: Every Question Investors Ask Answered

If you are a real estate investor exploring DSCR financing, here are the answers to the most common questions we receive at East Coast Mortgage.

What is the minimum DSCR ratio most lenders require?

Most lenders require a minimum DSCR of 1.0 to 1.25. Some offer no-ratio programs where DSCR can be below 1.0 with a larger down payment — typically 30 to 35%. Higher ratios generally produce better pricing.

Do I need to verify personal income for a DSCR loan?

No. DSCR loans do not require W-2s, tax returns, or pay stubs. The only income that matters is the property's rental income relative to its debt obligations.

What credit score do I need?

Most DSCR lenders require 620 to 680 minimum. Some programs allow lower scores with larger down payments. Best pricing is typically available at 720 and above.

Can I get a DSCR loan in an LLC?

Yes. Many DSCR lenders allow — and some prefer — loans held in LLCs, LPs, or corporations. This is one of the most significant advantages of DSCR over conventional investor financing.

Can I use Airbnb or vacation rental income to qualify?

Yes. STR income qualifies. For new acquisitions with no rental history, most lenders accept projected income from AirDNA or comparable market analysis reports.

What down payment is required?

Most DSCR loans require 20 to 25% down. Some lenders offer 80% LTV for best-qualified borrowers. No-ratio programs typically require 30 to 35% down.

What property types qualify?

Single-family, 2-4 unit properties, condominiums, short-term rentals, townhouses, and multi-family properties depending on the lender. Many programs also accommodate mixed-use and LLC-held assets.

Can I do a cash-out refinance with a DSCR loan?

Yes. DSCR cash-out refinances are available typically up to 75% LTV on investment properties.

How fast do DSCR loans close?

Well-structured scenarios typically close in 20 to 30 business days. Some lenders offer expedited programs for clean files.

What are typical DSCR loan rates?

DSCR rates run approximately 1 to 2% above conventional primary residence rates. The exact rate depends on DSCR ratio, LTV, credit score, property type, and current market conditions.

At East Coast Mortgage, we structure DSCR loans across 200+ lenders. Submit your scenario and we will find the right program for your investment.