Key facts
- DSCR = monthly rent ÷ monthly payment (principal, interest, taxes, insurance and HOA).
- 1.0 or higher gets the strongest terms; select programs go below 1.0.
- From 660 credit on most programs (620 on select programs); up to 75% LTV on purchases and cash-out.
- $100,000 to $3,000,000, with LLC vesting available on many programs.
Larz Martin, NMLS #2026245, arranges these loans through Lumin Lending, Inc. with access to 100+ wholesale lenders. Last updated October 2026.
How DSCR is calculated
Example: a rental that brings in $3,200 a month with a total payment (PITIA) of $2,900 has a DSCR of 3,200 ÷ 2,900 = 1.10. Above 1.0 means the rent covers the payment with room to spare. Try your own numbers in the DSCR calculator.
DSCR parameters
| What to expect | |
|---|---|
| DSCR ratio | 1.0+ for best terms; 0.75–0.99 on select programs; no-ratio on select programs |
| Credit score | From 660 on most programs; 620 on select programs |
| Max LTV | Up to 75% purchase and cash-out |
| Loan size | $100,000 to $3,000,000; larger on select programs |
| Occupancy | Investment property only (business purpose) |
| Property types | Single-family, condos, 2–4 units; non-warrantable condos on select programs |
| Short-term rentals | Airbnb/VRBO income on select programs |
| Reserves | Commonly 3 to 12 months of payments |
| Terms | Fully amortizing and interest-only options on select programs |
| Prepayment | Varies; shorter and no-prepay options on select programs |
Varies by lender; some local restrictions apply. Subject to approval.
DSCR vs. a conventional investment loan
- DSCR qualifies on the rent; conventional qualifies on your personal income and tax returns.
- DSCR may allow LLC vesting; conventional generally doesn't.
- Conventional usually has lower rates and fewer prepayment penalties, but caps how many financed properties you can have.
Frequently asked questions
Can a first-time investor get a DSCR loan?
Yes on many programs. First-time homebuyers are eligible only on select programs.
Can I close in an LLC?
LLC vesting is available on many DSCR programs.
Related loan programs
Learn more
Rates and program availability vary by state, property and lender. This is not a rate quote, a credit decision, an offer or a commitment to lend. Program restrictions apply. Larz Martin NMLS #2026245 · CA DRE #02241936 · Lumin Lending, Inc. NMLS #2716106 · CA DRE #02291443. Equal Housing Opportunity.
