DSCR Loans

About this program

How it works — step by step

1. 1

   Take the 60-second check-in

   Answer five questions about the property, expected rent, and your investing goals. No credit pull. The matcher surfaces the DSCR program tier most likely to fund your file.

2. 2

   Document the property income

   Gather a signed lease for long-term rentals, or 12 months of platform earnings plus a market rent appraisal for short-term rentals. The lender uses the lower of in-place rent or market rent survey.

3. 3

   Licensed MLO reviews the DSCR math

   A Sunrise loan officer confirms the rent-to-PITIA ratio, evaluates reserves, and verifies the program fit. This is the first formal conversation — nothing locks until you choose to move forward.

4. 4

   Underwriting on property cash flow

   The lender calculates DSCR independently of your personal DTI. Credit score, LTV, and reserve depth drive terms; your personal income does not. Files with strong DSCR ratios can close at lower LTVs without reserve-heavy overlays.

5. 5

   Close and fund

   Well-organized DSCR files typically close in 30–45 days. Your licensed officer coordinates appraisal, title, and closing timeline. Post-close, the property continues to operate normally.

What it usually looks like

• Investment property only — primary residences do not qualify for DSCR
• DSCR ≥ 1.00 required at most programs; premium pricing at ≥ 1.25
• Credit score typically 620+ (better pricing at 700+)
• Down payment 20–25% for purchase; LTV caps vary by program and DSCR tier
• Reserves: 6–12 months PITIA, higher for lower DSCR or higher LTV
• Signed lease or documented rental history (12 months STR data for vacation rentals)
• No limit on number of financed properties at most portfolio DSCR lenders
• Entity vesting (LLC, partnership) accepted by most programs

How it compares

Program terms, LTV limits, and documentation requirements vary by lender. As of June 2026. Not a commitment to lend.

Real scenarios

Who this fits

• Mortgage for a Business Owner Building a Rental Portfolio

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• Mortgage for a Home Services Business Owner

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• Mortgage for a Dual-Income Household

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Common questions

What is DSCR?

Debt-Service Coverage Ratio. It compares the property's monthly rental income to its PITIA (principal + interest + taxes + insurance + association dues). DSCR = rent ÷ PITIA. Most programs require ≥ 1.00–1.25. A ratio above 1.00 means the rent covers the payment; below 1.00 means it falls short.

Does my personal income matter for a DSCR loan?

Not for income qualification. The defining feature of DSCR is that the property qualifies on its own cash flow. Your personal tax returns and DTI do not affect the income calculation. Credit score, LTV, and reserves still matter.

What property types qualify for DSCR?

Single-family rentals, 2–4 unit small multifamily, condos, and townhomes. Many programs include short-term rentals (Airbnb/VRBO) with 12 months of documented rental income or a market rent appraisal. Commercial and 5+ unit multifamily typically fall outside DSCR programs.

Can I use DSCR for a cash-out refinance?

Yes. DSCR programs support purchase, rate-and-term refi, and cash-out refi. LTV limits are typically lower on cash-out — expect 65–70% max on cash-out versus 75–80% on purchase. The licensed officer confirms the exact cap for your file.

Does DSCR work for vacation rentals?

Many programs accept STR income. You'll typically need 12 months of platform earnings history or a market rent appraisal. Lenders use the lower of actual income or appraised market rent. STR properties sometimes carry tighter LTV and reserve requirements than long-term rentals.

How many properties can I own with DSCR?

Portfolio DSCR lenders typically allow 10+ financed properties — far beyond the conventional 10-property cap. Some programs have no stated limit. Each property is evaluated on its own DSCR math rather than stacking into your personal DTI.

What credit score do I need for a DSCR loan?

Most DSCR programs start at 620–660 and improve materially at 700+. Lower scores mean tighter LTVs and higher reserve requirements. The matcher asks for a score band and narrows you to programs your profile qualifies for.

Can I hold the property in an LLC?

Yes. Most DSCR programs allow — and many investors prefer — LLC vesting. The LLC is the borrower of record. Some lenders require a personal guarantee from a member. The matcher confirms entity-vesting options for your file.

What reserves are required?

Typically 6–12 months of PITIA in liquid reserves after closing. Higher LTVs and lower DSCR ratios usually require more. Reserves can be in checking, savings, brokerage, or retirement accounts (with a haircut). The officer confirms per program.