What are the requirements for a DSCR loan?

A DSCR lender is underwriting the property, not your job. That changes the list, but it does not shorten it. Here is what is typically asked for, and what you can do about each one.

1. The ratio itself

Monthly rent divided by the full monthly payment — principal, interest, taxes, insurance and HOA.

Rent $3,000, payment $2,500. $3,000 ÷ $2,500 = 1.20.

Most lenders want 1.20 to 1.25. Some will write at 1.00, and a few will write below it — usually with a larger deposit, a higher rate, or both.

What you can do: the ratio has two sides. You cannot invent rent, but you can change the payment by putting more down or choosing a longer amortisation. A property that fails at 20% down sometimes passes at 25%.

2. Credit

Typically a minimum around 660, with meaningfully better pricing above 720. It is a pricing input more than a yes-or-no gate, until it is low enough to be a gate.

What you can do: pull your own report before you apply. A wrong collection or a maxed card corrected a month early is worth more than any negotiation later.

3. The deposit

Usually 20–25% down on a purchase, and more on a cash-out refinance. This is the lender's cushion and it moves with the ratio, the credit and the property.

4. Reserves

Most lenders want to see several months of the full payment sitting in an account after closing. Six months is a common ask; some want more on a multi-unit.

What you can do: move money into place early. Funds that appeared last week get questioned; funds that have been there three months do not.

5. The property

• Type: single-family, 2–4 units, condo, sometimes 5+. Each has its own rules.
• Condition: it has to be rentable now. A property needing work belongs on a bridge or rehab loan first.
• Rent evidence: a signed lease, or an appraiser's market rent schedule where it is vacant.

6. The entity

Most DSCR lenders prefer to lend to an LLC, and many require it. Articles, operating agreement, EIN letter — and check the entity is in good standing with the state before anyone orders anything.

What you will not be asked for

No tax returns, no W-2s, no employment verification, no personal debt-to-income calculation. That is the whole point of the product, and it is why it suits the self-employed and investors who already carry several mortgages.

What makes a file strong

What would change the answer

Every figure above is typical and varies by lender, by borrower and by deal. A programme for short-term rentals reads differently from one for long-term. A portfolio of ten reads differently from a first purchase. The requirements above are the shape of the thing, not a quote from anyone.

If you want the list for your specific deal rather than the general one, tell us about the property.