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DSCR Loan Guidelines

DSCR financing guidelines for real estate investors, rental property qualification, and cash flow underwriting

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Flexible Guidelines • LLC Eligible
DSCR loan guidelines for rental property investors analyzing cash flow and qualification requirements

DSCR Guidelines

Compare DSCR Loan Requirements, Guidelines & Program Options

The DSCR marketplace is made up of dozens of lenders, each with slightly different guidelines. At Crestmark Lending, we compare the top national DSCR programs and match you to the best option based on your:

  • Property type
  • DSCR ratio
  • Credit score
  • Loan amount
  • Long-term or short-term rental income
  • LLC or personal title
  • Cash-out or purchase scenario

The information below outlines general DSCR loan requirements and eligibility, providing a snapshot of typical program ranges and underwriting guidelines.

DSCR Loan Eligibility Guidelines

Exact DSCR lender guidelines vary — we shop them for you and select the best match.

Credit Score Requirements

Program Type
Minimum FICO
Best Pricing FICO
Standard DSCR
620–660+
700+
STR/Airbnb DSCR
640–660+
700+
Low DSCR (<1.0)
660+
700+
Multi-Family (2–8 Units)
660+
700+

DSCR Ratio Requirements

Scenario
Typical Minimum DSCR
Notes
Strong Cash Flow
1.20+
Best pricing & smoothest approval
Standard Approval
1.00–1.19
Most common qualifying range
Limited Cash Flow
0.75–0.99
Higher rates & lower leverage
Break-Even / Below 1.00
Case-by-case
Limited lender options & stronger reserves required
Calculate your property DSCR ratio with our free DSCR Loan Calculator

Maximum LTV Limits

Transaction Type
Max LTV
Purchase
Up to 80%
Rate & Term Refinance
Up to 75–80%
Cash-Out Refinance
Up to 75–80%
DSCR Below 1.00
Typically 65–70%
Condos / Non-Warrantable
65–75%

Loan Amount Limits

Program Type
Loan Size
Standard DSCR
$75,000 – $3,000,000
High-Balance DSCR
Up to $5,000,000
Portfolio Loans
No hard limit with cross-collateralization
Small Multi-Family
Up to $3M–$8M depending on units

Property Types Eligible

Property Type
Eligible?
Single-Family (1 Unit)
✔ Eligible
Condo / Townhome
✔ Eligible
Non-Warrantable Condo
✔ Case-by-Case
Duplex, Triplex & Fourplex
✔ Eligible
Multi-Family (5–8 Units)
✔ Select Programs
Condotel
Possible Depending on Lender
Short-Term Rental / Airbnb
✔ Eligible with Select Lenders
Manufactured / Mobile Home
Limited Availability

Reserve Requirements

Loan Profile
Typical Reserves
Strong DSCR & High FICO
3–6 Months
Standard DSCR
6 Months
DSCR Below 1.00 / STR
9–12 Months
Portfolio Loans
12+ Months

Prepayment Penalty Options

Prepay Structure
Available?
Notes
5-Year Standard
✔ Yes
Lowest available rates
3-Year Stepdown
✔ Yes
Most common option
1-Year Prepay
✔ Yes
Higher interest rate
No Prepayment Penalty
✔ Limited
Typically highest pricing

Eligible Borrower Structures

Borrower Type
Eligible?
Individual / Personal Name
✔ Eligible
LLC
✔ Eligible
Corporation (S-Corp / C-Corp)
✔ Eligible
Partnership
✔ Eligible
Trust
Case-by-Case Approval
Foreign National
✔ Special Programs Available

Income Documentation Accepted

Income Type
Accepted
Notes
Long-Term Lease Income
✔ Yes
Most common DSCR income source
Market Rent (Form 1007)
✔ Yes
Commonly used for long-term rentals
Actual Airbnb / VRBO Income
✔ Yes
Uses verified short-term rental history
Projected STR Income
✔ Yes
Based on appraisal or AirDNA projections
Personal Income Documents
✕ Not Required
DSCR loans qualify based on property cash flow

This DSCR Loan Guideline shows the current underwriting guidelines from major DSCR lenders across the market. Requirements vary by lender, property type, and borrower profile. Use this guide to compare LTVs, credit score minimums, reserve requirements, DSCR ratios, STR eligibility, and more.