DSCR threshold
Many programs target 1.20-1.25+, but exceptions vary.
Underwriting guide
DSCR Loan Requirements
A DSCR loan is not approved by the ratio alone. Lenders also review loan-to-value, property type, reserves, credit, income documentation method, and market risk.
Common requirement areas
LTV
Higher leverage usually needs stronger coverage or pricing.
Reserves
Cash reserves can matter when coverage is thin or the property is riskier.
Credit
Credit score may affect rate, leverage, and eligibility.
Property type
Short-term rentals, condos, mixed-use, and commercial assets may have separate rules.
Prepayment
DSCR loans can include prepayment structures that change exit economics.
Choose the next calculation
What are you trying to solve?
Quick answers
Frequently asked
What DSCR threshold do lenders typically require?
Many DSCR loan programs target 1.20-1.25 or higher, but exceptions vary by lender, leverage and property type.
Do reserves and credit score affect DSCR loan approval?
Cash reserves can matter when coverage is thin or the property is riskier, and credit score may affect rate, leverage and eligibility even though DSCR programs qualify the property on rental income rather than personal income.