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DSCR Loans
Qualify on the Property's Rent. Not Your W2. Not Your Tax Return
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INTRODUCTION
What is a DSCR loan and how does the ratio work?
DSCR stands for Debt Service Coverage Ratio. It measures a rental property’s monthly income against its monthly debt obligations. The formula: monthly gross rent divided by monthly PITIA payment (principal, interest, taxes, insurance, and association fees). A DSCR of 1.0 means rent exactly covers the payment. Most DSCR lenders require a minimum ratio of 1.0 to 1.25. No personal income, W2, or tax return is required.
The deal cash flows. The rent covers the mortgage. Your income statement should not be the barrier between you and this investment — and with a DSCR loan, it is not.
DSCR loans qualify on one number: does the property’s monthly rental income cover its monthly mortgage payment? No W2. No personal tax return. No personal income verification of any kind. The property qualifies the loan.
In 2023, DSCR loan originations grew 47% year over year as investors hit Fannie Mae’s 10-property financing limit and needed an alternative. Access Financial closes DSCR loans in 14 to 21 business days — because in investment real estate, the deal does not wait for a slow lender.
DSCR Formula: Four Real Scenarios
What Is a DSCR Loan? The Definition Real Estate Investors Need.
| Monthly Rent | Monthly PITIA | DSCR Ratio | Qualification Status |
|---|---|---|---|
| $2,500 | $2,000 | 1.25 | Strong approval |
| $2,200 | $2,000 | 1.10 | Standard approval |
| $2,000 | $2,000 | 1.00 | Minimum threshold — most programs |
| $1,800 | $2,000 | 0.90 | Below threshold — larger down payment may help |
THE DSCR MARKET IN 2026
Why DSCR Loans Are the Fastest Growing Investor Mortgage in the US
DSCR loan originations grew 47% year over year in 2023 according to CoreLogic. The primary driver was investors hitting Fannie Mae’s 10-property conventional financing cap — after which standard lenders stop approving applications regardless of how strong the deal is. CoreLogic also reported that DSCR loans had a lower default rate than expected at the same DSCR thresholds, confirming that property cash flow is a reliable qualification metric. As of 2024, DSCR programs are available in all 50 states through non-QM lenders with Access Financial’s portfolio lender panel including 30+ dedicated DSCR programs.
| DSCR Loan Statistic | Value |
|---|---|
| 47% | Year-over-year growth in DSCR loan originations in 2023 — CoreLogic |
| 30+ | Dedicated DSCR loan programs available through Access Financial’s lender network |
| 10 | Property limit for conventional financing, after which DSCR financing often becomes necessary for investors |
DSCR LOAN PROGRAMS
DSCR Programs Available: Single-Family, Multi-Family, STR, and LLC
Every DSCR loan is evaluated independently on the property’s own income. There is no personal income verification, no property count limit, and no Fannie Mae 10-property cap. This is why DSCR has become the standard financing method for serious residential real estate investors.
| Property Type | DSCR Calculation | LLC Eligible? | Notes |
|---|---|---|---|
| Single-Family Rental | Market rent divided by PITIA | Yes | Most common DSCR loan program |
| 2 to 4 Unit Multi-Family | Combined unit rents divided by PITIA | Yes | Higher rental income can support a stronger DSCR |
| Airbnb / Short-Term Rental | AirDNA projected income divided by PITIA | Yes | Typically requires a DSCR between 1.10 and 1.25 |
| Property #11 or Beyond | Each property evaluated independently | Yes | No Fannie Mae property count limitation applies |
THE 3 QUESTIONS CONVENTIONAL BUYERS ASK MOST
Yes. DSCR loans are fully compatible with LLC, LP, and S-Corp entity lending. The loan is made to the entity. The LLC takes title. Investment debt stays off your personal credit profile. A personal guarantee from the managing member is typically required. Access Financial has specialty lender relationships that originate LLC DSCR mortgages regularly — not as an exception, but as a standard product.
Yes. Short-term rental DSCR programs accept AirDNA income projections in place of a signed lease agreement. AirDNA provides projected annual revenue based on comparable short-term rental properties in your specific market. Most STR DSCR programs require a 1.10 to 1.25 ratio due to occupancy variability. Access Financial runs the AirDNA projection for your property before you apply — confirming qualification before you spend a dollar on an appraisal.
DSCR loans continue without limit. Each property is evaluated on its own rental income independent of your total property count. Access Financial has closed property 11, 15, and 20+ for investors who hit the Fannie Mae conventional financing wall. The DSCR program was built specifically for this moment in a portfolio’s growth.
Finance the Deal. Not the Borrower. Start With a Free DSCR Calculation.
If the rent covers the payment, the deal qualifies. Access Financial runs your DSCR calculation free, shops your file across 30+ dedicated DSCR programs, and closes in 14 to 21 business days.
Frequently Asked Questions
Most DSCR programs require a minimum 620 credit score. Best rates go to borrowers above 700. DSCR programs are non-QM products originated by portfolio lenders. Credit minimums vary by lender — most set overlays at 620 to 660. At 700 and above, the full range of DSCR programs and best rate tiers are available. Access Financial identifies the DSCR lender with the lowest credit overlay for your specific profile.
DSCR loans typically require 20 to 25% down. Some programs go to 15% down with a higher DSCR ratio. Portfolio lenders hold 100% of DSCR loan risk on their balance sheets — which is why down payment requirements are higher than conventional. Standard DSCR programs require 20 to 25% down for single-family rentals. Multi-family DSCR programs may require 25 to 30% down. Short-term rental programs typically require 25% due to income variability. Some lenders offer 15% down for DSCR ratios above 1.25.
Yes. A market rent appraisal (Form 1007) establishes the projected market rent for DSCR calculation on a vacant property. When a property has no lease history — a new purchase or a recently vacant rental — DSCR lenders use the appraiser's market rent analysis (Form 1007) to establish the qualifying rent. The appraiser determines what the property would rent for on the current market. DSCR is then calculated using that projected rent rather than actual lease income. Access Financial orders Form 1007 rent analyses alongside the standard appraisal on every new DSCR purchase.