DSCR Loan Requirements, What You Actually Need to Qualify
Published June 19, 2026 · DSCRRadar
A DSCR loan skips income verification, but that doesn’t mean it’s easy to qualify for. The property has to pass the test instead of you. Here’s what lenders actually require.
The core requirement is DSCR ≥ 1.2
The deal must produce a debt service coverage ratio of at least 1.20 (some lenders go to 1.0). That means net operating income must cover annual debt service by 20%. Check yours.
Typical DSCR loan requirements
| Requirement | Typical range |
|---|---|
| Minimum DSCR | 1.20 (1.0 with some lenders) |
| Down payment | 20–25% |
| Minimum credit score | 660–680+ |
| Reserves | 3–6 months of PITIA per property |
| Property type | Non-owner-occupied 1–4 units |
| Title | Often must be in an LLC |
What you don’t need
- W-2s or tax returns
- Debt-to-income ratio underwriting
- A primary residence
What raises your chances
- A DSCR above 1.25 (better pricing)
- Lower LTV (more down payment)
- Stronger credit
- A property in a stable, lower-risk market (see the Index)
- A signed lease or credible market-rent analysis
The binding constraint for most investors in 2026 isn’t paperwork. It’s that the property’s rents don’t cover the debt at today’s rates. On a mid-tier median purchase, none of the 18 metros we track clears 1.2 right now, so the practical move is to pick markets where the rent-to-price math comes closest and then buy below the median. The Index ranks them and shows the entry-tier band alongside the median on every market page.
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