DSCR Loan Requirements in 2026, as a Checklist

To qualify for the DSCR program we offer, you need a 660 credit score, a rental whose rent covers its full payment at least 1.05 times, an LLC or corporation to borrow in, and a down payment of at least 20% on a purchase. Loans run from $75,000 to $2,000,000 on 1-4 unit rentals. No tax returns.

Here’s every requirement, grouped the way an underwriter reads a file.

You

• Credit score of 660 or higher
• Borrowing through an LLC or corporation
• Willing to sign a full-recourse personal guarantee
• No income documents needed: no W-2s, pay stubs or tax returns
• No experience needed
• Foreign nationals eligible, at up to 65% LTV

The guarantee matters more than people expect. Full recourse means that if the property is lost and doesn’t cover the loan, the lender can pursue you personally for the shortfall. The LLC holds title; it doesn’t wall you off from this debt. More on that in our LLC guide.

The property

• Single family, 2-4 units, townhome, PUD or warrantable condo
• Non-owner-occupied (not your home, not a relative’s)
• Not rural
• Not in North Dakota, South Dakota or Vermont (we lend in the other 47 states and DC)

Short-term rentals sit in a gray zone. Ask before you sign a contract.

The rent test

The ratio is gross monthly rent divided by PITIA (principal, interest, taxes, insurance, HOA dues). It has to be at least 1.05.

So the minimum rent is the payment times 1.05. A $1,900 PITIA needs $1,900 × 1.05 = $1,995 of rent the lender will count.

That phrase, “will count,” does the work:

• Leased unit: the lower of the lease and the appraiser’s market rent. A lease at $2,200 on a unit the appraiser puts at $2,000 counts as $2,000.
• Vacant unit: 90% of market rent. Market rent of $2,000 counts as $1,800.
• Vacancy allowed: a purchase can be fully vacant. On a 2-4 unit refinance, one unit can be vacant.

Put those together. A vacant single family purchase with $2,000 market rent and a $1,900 PITIA gets counted at $1,800, and $1,800 ÷ $1,900 = 0.95. It fails, even though the market rent alone would have passed at 1.05. The fix is usually a bigger down payment or interest-only. How the math works in full is in how lenders calculate DSCR.

How much you can borrow

Situation	Max loan
Purchase	80% LTV
Rate-and-term refinance	80% LTV
Cash-out refinance	75% LTV
Owned under 3 months	80% of total cost basis
Foreign national	65% LTV
Loan amount	$75,000 minimum, $2,000,000 maximum

The rent test applies on top of these. Whichever limit produces the smaller loan is the one you get.

A $250,000 purchase at 80% is a $200,000 loan and a $50,000 down payment, before closing costs.

Seasoning: when the new value counts

If you’ve owned the property less than 3 months, the lender sizes the loan on what you put in, not what it’s now worth. Value is used after 90 days of seasoning.

Say you bought a house for $180,000 and put $40,000 of documented work into it. At two months, the loan is capped at 80% of $220,000, or $176,000. Wait past 90 days, get a $300,000 appraisal, and a cash-out refinance at 75% could reach $225,000, provided the rent supports it. That gap, $49,000, is often worth a month of waiting.

Documents to have ready

• LLC or corporation formation documents, operating agreement and EIN letter
• Signed leases for any rented units
• Bank statements covering the down payment, closing costs and reserves
• An insurance quote naming the lender, plus flood insurance if the flood map requires it
• Purchase contract (purchase) or current mortgage statement (refinance)
• For a property owned under 3 months: the settlement statement and receipts for the work

The appraisal, with its rent schedule, is ordered by the lender.

What isn’t published

Points, prepayment terms and reserve requirements are quoted per loan rather than published, and zero-point options exist. Ask for all three in writing when you get a quote. The prepayment term in particular decides how expensive it is to sell or refinance in the first few years.

Full terms are on the DSCR loans page, and the DSCR calculator runs the rent test and the LTV limit on your own deal.