DSCRDSCR 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 a rate near 6.8%. Few of the 18 metros we track clear 1.2 today, so pick markets where the rent-to-price math actually works. The Index ranks them.
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