DSCR loans for rental property: how the rent qualifies you
A DSCR loan is a long-term rental property loan that qualifies on the property’s rent instead of your personal income. The lender divides the monthly rent by the monthly payment, including taxes, insurance and HOA dues, and wants that ratio, the debt service coverage ratio, at or above its minimum. Published minimums on long-term rentals run from 0.75 to about 1.1 among the lenders we compare, and Easy Street says it has none.
The math
Say a house rents for $2,400 a month. The loan is $260,000 at 7.25% for 30 years, which is $1,774 a month of principal and interest. Add $300 of property tax, $150 of insurance and no HOA, and the full payment (PITIA) is $2,224.
DSCR = $2,400 / $2,224 = 1.08.
That clears a 1.0 minimum. If the rent were $2,000, the ratio would be 0.90: below 1.0, but still inside the published minimums of lenders that go to 0.75 or 0.8.
What lenders publish
| Lender | Rate from | Purchase LTV | Cash-out LTV | Min DSCR |
|---|---|---|---|---|
| Roc Capital | 5.39% | Up to 80% | Up to 75% | 1.05x |
| Easy Street Capital | 5.75% | Up to 80% | Up to 75% | No minimum |
| Park Place Finance | 5.75% | Up to 85% | Up to 75% | As low as 0.75 |
| Groundfloor Lending | 5.875% | Up to 80% | Not published | 1.1 (also says 1.2) |
| Upright | 5.99% | Up to 80% | Up to 75% | 0.90x long-term |
| New Silver | 6% | Up to 80% | Not published | 0.75 |
| RCN Capital | 6.00% | Up to 80% (by FICO) | Up to 75% (by FICO) | 1.00 |
| Express Capital Financing | 6.25%+ | Up to 85% | 75% | 1.0x |
| Kiavi | 6.375% | Up to 80% | Not published | As low as 0.8x |
| Lima One Capital | 6.5% | Up to 80% | Up to 75% | 1.0 |
| CIVIC Financial Services | 6.56% | Up to 80% | Up to 75% | 1.05x |
| Asset Based Lending | 6.75% | 80% | Not published | 1.0 |
Starting rates are each lender’s advertised best case, read October 24, 2026. LendingOne, Temple View, Visio, CoreVest and Rehab Financial Group (whose rental loan comes from a partner) publish loan limits but no starting rate. Kiavi’s rental loans have been made by Figure Lending since September 1, 2026. See the full comparison by state.
What else changes the terms
Credit moves the loan more than people expect. Published minimum scores run from 640 to 680, and RCN cuts its purchase loan limit from 80% to 65% as the score drops from 700 or better to 660-679.
Most DSCR loans carry a prepayment penalty, often stepping down over three to five years, and a shorter penalty usually costs you rate. Visio notes that New Mexico, Ohio, Maryland, Pennsylvania and Rhode Island require a zero-prepayment option. Short-term rentals qualify with some lenders at a higher bar: Lima One publishes 1.3 for them, Upright 1.15. And expect to borrow through an LLC; Visio lists the states where it insists on one.
From flip to rental
The “BRRRR” path (buy, rehab, rent, refinance, repeat) uses a fix-and-flip loan for the purchase and rehab, then a DSCR loan to pay it off once the house is rented. The refinance is sized on the new value and the rent, so the calculator’s ARV and a realistic rent decide whether you get your cash back out.
Send a rental deal for terms, or run the flip side first in the calculator.
Questions people ask
How is DSCR calculated for a rental loan?
Monthly rent divided by the full monthly payment, including principal, interest, property taxes, insurance and any HOA dues (PITIA). Rent of $2,400 against a $2,000 payment is a DSCR of 1.20. CIVIC and Roc Capital describe their minimum as "Gross Rent/PITIA."
What is the minimum DSCR for a rental loan?
It depends on the lender. Among published minimums, LendingOne, New Silver, Park Place Finance and Temple View go as low as 0.75 on long-term rentals, Kiavi as low as 0.8, ABL and RCN publish 1.0, and Easy Street says it has no minimum. Lower ratios usually mean a smaller loan or a higher rate.
Do DSCR loans check my income?
Generally not the way a mortgage does; the property's rent qualifies the loan. Lenders still check credit, cash reserves and the property, and most lend only to an LLC or other entity on property you won't live in.