DSCR loans · Investment property in all 50 states · NMLS #1630225
DSCR Loans — Qualify on the Property’s Rent, Not Your Tax Returns
A DSCR loan is underwritten on the rent the property brings in, not on your income, tax returns or W-2s. We place them on 1–4 unit investment property in all 50 states — from a 1.0 ratio down to no ratio at all.
Last updated July 2026 · reviewed by a licensed mortgage broker
It Is Offered
Standard DSCR
Amount
or W-2s
DSCR Mortgage Loans — the investor’s no-income, alt-doc loan for rental property — let real estate investors qualify on a property’s rental income instead of tax returns or W-2s, with no minimum credit score at 55% LTV or below. Below is exactly how this no-income investment property loan works, the terms, and who qualifies.
Your Answer Right Here
What Is a DSCR Mortgage Loan and How Does It Work?
A DSCR mortgage loan is an investment property loan that uses the Debt Service Coverage Ratio to determine whether you qualify — not your personal income, employment history, or tax returns. The lender divides the gross monthly rental income the property generates by the total monthly mortgage payment (principal, interest, taxes, insurance, and HOA if applicable). That calculation gives you the DSCR. A ratio at or above 1.0 means the property pays for itself. A ratio above 1.25 gives you access to the most competitive programs and highest loan amounts.
This matters most to the investors conventional lending turns away. Self-employed borrowers who write off income, landlords carrying several properties, anyone scaling a rental portfolio — they all hit the same wall, because the write-offs that lower a tax bill also lower the income a conventional lender sees, and the return no longer supports the loan. A DSCR loan gets around that. The property qualifies on its own rent, and you can close in an LLC or a corporation to keep it off your personal books.
Mortgage-World.com (NMLS #1630225) places DSCR loans on investment property in all 50 states. Because we shop the market rather than work from one rulebook, we can weigh the Standard, Sub1, No Ratio and DSCR Fusion programs against each other to find the fit for your property, your credit and the amount you need. Use the DSCR calculator below to run your numbers right now, then call 888.958.5382 or apply online to get started.
Where You Can Use One
DSCR Loans Are Available in All 50 States
DSCR is the one program on this site that is not limited to the states where we write consumer mortgages. The loan is underwritten on a non-owner-occupied 1–4 unit investment property and qualifies on that property’s rent, and we place DSCR loans on investment property in all 50 states.
Our consumer mortgage programs — bank statement loans, no-income-verification loans, FHA, VA, conventional and HELOCs — are offered in New Jersey, Connecticut and Florida only. The DSCR program is the exception, and it works in both directions: if you live in one of those three states and are buying a rental somewhere else, or you live somewhere else and are buying a rental in New Jersey, Connecticut or Florida, the file follows the property rather than your home address.
A few limits travel with the property rather than with the borrower. Baltimore City, Maryland is temporarily ineligible, rural properties are capped at 65% LTV, condominiums carry their own maximum, and every property has to be a 1–4 unit non-owner-occupied rental. Those limits are listed in the requirements section below, together with the minimum square footage by property type.
Program Comparison
DSCR Loan Programs — 2026 Non-QM DSCR Matrix
Which DSCR Program Fits Your Property?
Not every rental property will hit a 1.0 DSCR, and not every deal needs to. Mortgage-World.com works with multiple programs designed for different property cash flow situations. The Standard DSCR program requires a minimum 1.0 ratio and offers the most aggressive LTV up to 85% on purchase with 720+ FICO. The Sub1 DSCR program accommodates properties with a DSCR between .75 and 1.0 — meaning the rent does not fully cover the payment — at reduced LTV. The No Ratio DSCR program has no minimum DSCR requirement and works for vacant properties, new acquisitions, or properties with very low rents relative to their value. The DSCR Fusion program blends property rental income with asset utilization to improve the qualifying ratio for borrowers who hold significant liquid assets.
For investors working with properties that carry short-term rental income through platforms like Airbnb or VRBO, a Short-Term Rental DSCR mortgage loan is also available. Rents are documented using a Form 1007/1025 supported by 12 months of payment history, or through AirDNA or an overview report when no rental history exists. A 20% management fee reduction is applied to the gross income, and experienced investors are required. The Consumer Financial Protection Bureau offers useful resources for investors evaluating real estate financing options, and the Fannie Mae loan limit tool helps confirm conventional limits for comparison when evaluating whether a DSCR loan is the right structure.
Mortgage-World.com (NMLS #1630225) offers multiple DSCR mortgage loan programs for investment property buyers and owners in all 50 states. Below is the current LTV matrix for purchase, rate/term refinance, and cash-out refinance.
Standard DSCR — 1.0 Minimum Ratio
| Loan Amount | Min FICO | Purchase LTV | Rate/Term LTV | Cash-Out LTV |
|---|---|---|---|---|
| Up to $1,000,000 | 720+ | 85% | 85% | 80% |
| 700+ | 80% | 80% | 75% | |
| 680+ | 80% | 80% | 75% | |
| 640+ | 75% | 75% | 70% | |
| 620+ | 70% | 70% | 65% | |
| 600+ | 65% | 65% | 65% | |
| $1,000,001 – $1,500,000 | 720+ | 85% | 85% | 75% |
| 700+ | 80% | 80% | 75% | |
| 680+ | 80% | 80% | 75% | |
| 640+ | 70% | 70% | 65% | |
| 620+ | 65% | 65% | 60% | |
| 600+ | 65% | 65% | 65% | |
| $1,500,001 – $2,000,000 | 740+ | 80% | 80% | 75% |
| 720+ | 80% | 80% | 75% | |
| 700+ | 75% | 75% | 70% | |
| 680+ | 75% | 75% | 70% | |
| 640+ | 70% | 70% | 65% | |
| 620+ | 60% | 60% | 55% | |
| $2,000,001 – $2,500,000 | 740+ | 80% | 80% | 75% |
| 720+ | 80% | 80% | 75% | |
| 700+ | 75% | 75% | 70% | |
| 680+ | 75% | 75% | 70% | |
| 640+ | 70% | 70% | 65% | |
| 620+ | 60% | 60% | 55% | |
| $2,500,001 – $3,000,000 | 740+ | 75% | 75% | 70% |
| 720+ | 75% | 75% | 70% | |
| 700+ | 70% | 70% | 65% | |
| 680+ | 70% | 70% | 65% | |
| 640+ | 65% | 65% | 60% | |
| 620+ | 55% | 55% | 50% | |
| $3,000,001 – $3,500,000 | 740+ | 65% | 65% | 60% |
| 720+ | 65% | 65% | 60% |
Loan amounts above $3,000,000 require a minimum 720 FICO. Standard DSCR mortgage loans require a minimum 1.0 DSCR ratio. Interest Only (IO) available on DSCR investment property loans: 640+ FICO, 80% max LTV. Condo: 80% max LTV (FL Condo: 70%). 2-4 Unit: 80% max LTV. Rural: 65% max LTV. Matrix effective 06.08.2026.
Sub1 DSCR — Ratio Between .75 and 1.0 (Up to $1M Shown)
| Min FICO | Purchase LTV | Rate/Term LTV | Cash-Out LTV | Notes |
|---|---|---|---|---|
| 720+ | 75% | 70% | 65% | Sub1 DSCR mortgage loans: min DSCR .75–.99. Condo: 70% max (FL 50%). 2-4 Unit: 60% max. Rural: N/A. IO not available. Short-term rentals not available. |
| 700+ | 70% | 70% | 65% | |
| 680+ | 70% | 70% | 65% | |
| 640+ | 70% | 70% | 65% | |
| 620+ | 65% | 65% | 60% | |
| 600+ | 60% | 60% | 55% |
No Ratio DSCR — DSCR Below .75 or Vacant Property
| Min FICO | Purchase LTV | Rate/Term LTV | Cash-Out LTV | Notes |
|---|---|---|---|---|
| 720+ | 70% | 65% | 60% | No minimum ratio. Condo: 70% max (FL 50%). 2-4 Unit: 60% max. Rural: N/A. IO not available. STR not available. Vacant OK for purchase; refinance requires LOE for vacancy. |
| 700+ | 65% | 60% | 55% | |
| 680+/No FICO | 65% | 60% | 55% | |
| 660+ | — | — | — | |
| 640+ | — | — | — |
Understanding DSCR
How DSCR Mortgage Loans Work: The Formula Explained
The Debt Service Coverage Ratio is a single number that tells a lender whether a rental property generates enough income to cover its own mortgage. The formula is straightforward: divide the gross monthly rent by the total monthly PITIA (principal, interest, taxes, insurance, and association dues if applicable). A result of 1.0 means rent exactly covers the payment. A result of 1.25 means rent covers 125% of the payment, which is the threshold for the most favorable DSCR loan terms.
The rent used in the calculation depends on the program. Some use the higher of the Form 1007 market rent or the actual rent from an executed lease — the more favorable of the two — while others use the lower, capping the qualifying rent at 125% of the appraised market rent when the lease runs higher. An executed lease should carry two months of documented payment history. This is an important distinction: a long-term tenant paying above-market rent may not generate as much qualifying income as you expect if the appraisal comes in lower.
Who Qualifies
DSCR Mortgage Loan Requirements: Credit, Property & Structure
- DSCR mortgage loans: 600 FICO minimum on Standard DSCR up to $1M; no minimum credit score at 55% LTV or lower
- US Citizens and Permanent Resident Aliens eligible
- ITIN borrowers: 700+ FICO, $1.5M max, 75% LTV, cash-out not allowed
- Foreign National DSCR available — 1.0 ratio minimum, 70% max LTV
- No personal income documentation required
- No employment history or W-2 required
- No limit on number of financed properties (unlimited)
- DACA borrowers: 80% max LTV, cash-out not allowed
- 1-4 unit non-owner occupied investment properties only
- Single family detached, PUD, townhomes
- Condos: 80% max LTV standard (75% non-warrantable); Florida condos 70% (65% non-warrantable)
- 2-4 unit properties: 80% max LTV
- Rural properties: 65% max LTV
- Short-term rentals: experienced investors only
- Minimum square footage: SFR 700 sq ft | Condo 500 sq ft | 2-4 Unit 400 sq ft per unit
- Baltimore City, MD properties temporarily ineligible
- 15, 30, and 40-year fixed rate terms available
- 5/6 SOFR ARM (2/1/5 cap) — 30 and 40-year terms
- 7/6 SOFR ARM (5/1/5 cap) — 30 and 40-year terms
- Interest Only (IO): 640+ FICO, 80% max LTV; qualify on IO payment
- 30-year and 40-year fixed IO also available (120 months IO)
- Closing in LLC or Corporation allowed
- Minimum loan amount: $100,000
- Maximum loan amount: $3,500,000
- Reserves: not required at or below $1.5M; roughly 2 months PITIA over $1.5M and 6 months over $2.5M, and on many programs cash-out can satisfy them
- Loans over $2M: 6 months reserves; loans over $3M: 12 months
- Cash-out seasoning: not required on every program — some allow a cash-out with no waiting period, others require 6 months since you bought the property or since your last cash-out
- Interested party contributions: 6% maximum
- Gift funds: 100% allowed, with no LTV reduction
- Pre-payment penalty: not allowed in NJ or NM (may close in corporate name in NJ)
- First-time home buyers and first-time investors accepted through our lender network
- Temporary buydowns not permitted
DSCR Mortgage Loans After a Credit Event or Bankruptcy
Investors who have experienced a bankruptcy, short sale, foreclosure, deed-in-lieu, or charge-off can still qualify for a DSCR mortgage loan if enough time has passed. For the Standard DSCR program, a foreclosure or charge-off requires a minimum 36-month seasoning period. A short sale or deed-in-lieu requires at least 24 months. A Chapter 7 bankruptcy also requires 24 months from discharge. A Chapter 13 bankruptcy with a documented pay history can be eligible as early as 12 months. These waiting periods make DSCR investment property loans one of the more accessible programs for borrowers who have recovered from a past credit event and are building a rental portfolio.
Taking Money Out
How Much Cash You Can Take Out of a Property
On a cash-out refinance there are two separate ceilings, and the one that stops most files is not the one investors expect. The first is the LTV in the matrix above — how much of the property’s value the loan can be. The second is a cap on the cash itself: the money that actually reaches you at closing, after the existing mortgage and costs are paid off. That cap moves with your loan-to-value, your credit score and which program the ratio puts you in.
| Where the file lands | Most cash in hand |
|---|---|
| At or below 60% LTV | Unlimited — with no ratio, credit score or experience condition through one lender in our network. |
| Above 60% up to 65% LTV | $1,500,000 — and unlimited if the ratio is 1.20 or better, the score is 720 or better, and the borrower is an experienced investor. Vacant properties are not eligible for that tier. |
| Above 65% up to 75% LTV, 700 credit score or better | $1,500,000 |
| Above 65% up to 75% LTV, under a 700 credit score | $1,000,000 |
| Above 75% LTV | $500,000 |
| Ratio below 1.00 (Sub1 DSCR) | $500,000 |
| No Ratio DSCR | $500,000 |
| Foreign National DSCR | $500,000 at 50% LTV or below, $300,000 above 50% LTV |
Read that alongside the seasoning rule, which is not the same everywhere. Some programs want six months of ownership behind you — measured from the day you bought the property, or from your last cash-out — and others carry no seasoning requirement at all, so a property you have only just bought can still be refinanced for cash. If you have owned it a short time, ask before you assume you have to wait. Separately, pulling the LTV down a few points is often what raises the cash cap, which is the opposite of how borrowers usually think about it — a smaller loan can put more money in your hand than a larger one.
Who Is Behind the Loan
Experienced and Inexperienced Investors Are Underwritten Differently
The program draws a line between investors who have run rental property before and investors who have not, and it changes real terms rather than just the paperwork. An experienced investor has owned and managed non-owner-occupied income-producing property for at least one year within the last three years. Only one borrower on the loan has to meet that definition. A mortgage tradeline on your credit report for a property you have since paid off or sold within the last twelve months still counts, the properties must be in the United States, and living rent free yourself is allowed.
If nobody on the loan meets that definition, the file is an inexperienced investor file. Not every program draws that line, and some accept first-time investors and first-time home buyers outright — which is worth asking about before you assume you are shut out. Where the overlay does apply, the terms tighten:
- 80% maximum LTV and a $1,500,000 maximum loan amount
- A clean twelve-month housing history — no payment 30 days late in the last year, verified with your landlord or your mortgage servicer
- At least three months of reserves, and cash-out proceeds cannot be used to meet them
- Sub1 DSCR is capped at 60% LTV with no cash-out
- No Ratio DSCR, DSCR Fusion and short-term rental income are not available
- First-time home buyers are not eligible, and living rent free is not allowed
Two other places this shows up: short-term rental income can only be used by experienced investors, and the unlimited cash-in-hand tier above requires one. If you are buying your first rental, the practical read is that the ceiling is 80% LTV and the file wants a clean year of housing payments behind it.
Limits Worth Knowing First
Where the Program Draws Lines — Markets, States and Portfolio Size
Declining markets. Above 70% LTV, if the appraiser designates the area as declining in value, the maximum LTV drops by five points from the program maximum. It is worth planning for on any file that needs the top of the range, because you do not find out until the appraisal comes back.
Portfolio size. There is no limit on how many financed properties you own. There is a limit on how much exposure a single lender will carry to one investor — $5,000,000 or six properties — which is a reason to expect your portfolio to be spread across more than one lender as it grows.
Where the property is. Properties in Baltimore City, Maryland and its neighborhoods are temporarily ineligible. In Georgia the loan amount is capped at $2,000,000. Pre-payment penalties are not permitted in New Jersey or New Mexico unless the loan closes in the name of a corporation.
Raising a Borderline Ratio
How an Interest-Only Payment Changes Your DSCR
The ratio is the property’s gross monthly rent divided by its full monthly payment — principal, interest, taxes, insurance and any association dues. Every tier above turns on that one number: 1.0 and higher is Standard DSCR, .75 to .99 is Sub1 DSCR, below .75 is No Ratio DSCR. A property that lands just under 1.0 is not a worse property than one that lands just over it. It is the same property carrying a slightly larger number in the denominator.
That is why the interest-only option matters as a structure and not only as a payment feature. On an interest-only DSCR loan the qualifying payment is the interest-only payment, and the reserve requirement is measured against it too, so the principal portion sits outside both calculations for as long as the interest-only period runs. A file that comes in below 1.0 on a fully amortizing payment can clear 1.0 on the interest-only payment, and that moves it from Sub1 DSCR to Standard DSCR — which, at the same credit score and loan amount, is the higher maximum LTV in the matrix above. Interest-only is available from 640 FICO to a maximum 80% LTV, on 30-year and 40-year fixed loans and on the 5/6 and 7/6 SOFR ARMs, with a 120-month interest-only period.
The trade-off is worth stating plainly: an interest-only payment builds no equity. Nothing comes off the balance while the interest-only period runs, and the payment steps up when it ends and the loan begins amortizing over the years that remain — twenty on a 30-year, thirty on a 40-year. It is a way to qualify a property whose rent nearly covers it, or to protect cash flow while a unit is renovated or re-leased — not a way to carry a property the rent cannot support. A licensed loan officer on our team will price both versions of the payment, and show you the ratio each one produces, before you decide which to use.
Run Your Numbers
Estimate Your DSCR
DSCR is the property’s monthly rent divided by its full monthly payment — principal, interest, taxes, insurance and any HOA (PITIA).
Find out in a few minutes
Before You Start
What Happens After You Apply
- You send the application
A few minutes online. No documents at this stage.
- A licensed loan officer calls you
Someone on our team covering your state.
- We ask for documents and pull credit
Only once you have decided to move forward.
- You get an approval to shop with
Typically back within the hour.
What Our Clients Say
What Our Clients Say About DSCR Mortgage Loans & Mortgage-World.com
“Chris was the best mortgage person I’ve ever experienced in my life. My refi was very complicated. We must have called him 75 times. He never missed one of my calls. Unbelievable, and we got it done.”
“Chris Luis is the BEST mortgage broker on this planet! If you’re looking to buy a home, definitely give him a call. Chris will go above and beyond to try to help you!”
“Julia Luis has been very professional and has been very helpful during the process! Anyone looking for someone to assist them in their future adventures needs to have her on your side! Thank you for being there for me!!”
Frequently Asked Questions
Frequently Asked Questions: DSCR Mortgage Loans
Related DSCR programs: DSCR Loans New Jersey · DSCR Loans Connecticut · DSCR Loans Florida.
Related Resources
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Written and reviewed by Chris Luis, Broker/Owner of Mortgage-World.com, NMLS #1630225. About the author