Standard DSCR Loans
The most popular DSCR loan program. Qualify with rental income alone. No tax returns, no W-2s, no bank statements. If your property cash-flows at 1.0x or better, you're in.
HOW IT WORKS
How Standard DSCR Loans Work
The Standard DSCR loan is the workhorse of investor lending. The lender orders an appraisal that includes a rental income analysis (Form 1007 for single-family, Form 1025 for multi-unit). If the property is already rented, the lender uses the actual lease amount. If it is vacant, the appraiser provides a market rent estimate based on comparable rentals in the area.
The lender divides that monthly rental income by the total PITIA payment. If the result is 1.0x or higher, the property qualifies. No income docs. No tax returns. No employment verification. At the application stage your matched specialist will run a credit check with your consent, and you provide proof of down payment or equity and entity documentation if closing in an LLC.
Closings typically take 21-30 days from application to funding. Prepayment penalties are standard (3-2-1 step-down or 5-4-3-2-1 depending on the lender). Properties can be vested in an LLC, trust, or individual name.
Most lenders allow up to 20 financed DSCR properties simultaneously, with some having no cap at all. This is the primary advantage over conventional loans, which cap out at 10 financed properties per borrower.
REQUIREMENTS
Do You Qualify for a Standard DSCR Loan?
You Qualify If
- Your property has a DSCR of 1.0x or higher (rent covers the mortgage payment)
- You have a 660+ FICO score (mid-score of three bureaus)
- You can put 20% or more down on a purchase (or have 20%+ equity for a refinance)
- You are buying a 1-8 unit non-owner-occupied residential property
- You are a US citizen, permanent resident, or eligible visa holder
- You have 6 months of PITIA in liquid reserves
- You want to close in an LLC, trust, or your personal name
- You need no limit on how many DSCR loans you can hold simultaneously
This May Not Be Right If
- Your property has negative cash flow (DSCR below 1.0x). See No-Ratio DSCR instead.
- You are a first-time homebuyer looking for an owner-occupied primary residence
- Your FICO score is below 660
- You are buying a fix-and-flip that is not yet stabilized. See Bridge-to-DSCR instead.
- You are purchasing vacant land or commercial property (non-residential)
Not sure? A specialist can review your specific scenario.
DEAL EXAMPLE
Real Standard DSCR Deal
David R., Georgia
Single-family rental in Atlanta suburbs (Kennesaw)
Standard DSCR"I was tired of explaining my tax returns to underwriters. With DSCR, the property spoke for itself. Twenty-four days from application to keys."
David R., Georgia
Results may vary. This is a representative example, not a guarantee of future performance.
SPECIALIST STRUCTURING
How a Specialist Structures a Standard DSCR Deal
Standard DSCR programs vary widely between lenders. Overlays, exception tolerance, and program guidelines shift constantly. Your matched specialist's job is not to send you a rate sheet. It's to structure your file for the lender most likely to approve it. Here's what that looks like in practice.
Lender Overlay Mapping
Every Standard DSCR lender has different overlays: credit minimums, reserves, property condition rules, and exception tolerance. Your specialist knows which lenders' overlays match your scenario.
File Presentation
How a file is presented to an underwriter often determines approval. Your specialist frames the narrative (compensating factors, rent comps, reserves) to give your file the best chance.
Exception Hunting
When an automated decision says no, the specialist asks why and what would change it. That's the difference between losing a deal and saving it.
Pivot When Needed
If the first lender declines, your specialist pivots to a second within 48 hours, not weeks. The 70+ lender network exists to keep deals moving when one path closes.
Loan terms and approval are subject to your specialist's review, full underwriting, appraisal, and the matched lender's specific guidelines. This is not a loan offer or commitment to lend.
COMPARE
How Standard DSCR Compares
| Feature | Standard DSCR | Interest-Only DSCR | Bank Statement DSCR |
|---|---|---|---|
| Min DSCR | 1.0x | 1.0x | 0.75x |
| Min Down Payment | 20% | 20% | 20% |
| Min FICO | 660 | 680 | 660 |
| Best For | Cash-flowing rentals | Cash flow maximizers | Self-employed investors |
| Unique Feature | No income docs, no property cap | Lower payments boost DSCR | Bank deposits replace income docs |
FAQ
Standard DSCR FAQ
No. The lender qualifies the property based on its rental income, not your personal income. You will not submit W-2s, tax returns, or pay stubs. The only financial documentation is proof of down payment funds and reserves.
Yes. Most DSCR lenders allow vesting in an LLC, corporation, or revocable trust. Some require the individual borrower to personally guarantee the loan even when the title is in the LLC name.
For leased properties, the lender uses the current lease amount. For vacant properties, the appraiser provides a market rent estimate on Form 1007 (single-family) or Form 1025 (2-4 unit). The lower of the lease amount or appraised rent is typically used.
There is no universal cap. Most DSCR lenders allow 20+ simultaneous loans. Some have no limit at all. This is one of the primary reasons investors use DSCR loans instead of conventional financing, which caps at 10 financed properties.
Most DSCR loans carry a prepayment penalty for the first 3-5 years. A common structure is 3-2-1 (3% of the loan balance if paid off in year 1, 2% in year 2, 1% in year 3, none after). Some lenders offer no-prepay options under different program structures. Your specialist will walk you through the trade-offs.
READY?
Ready for a Standard DSCR Loan?
One application. 70+ DSCR lenders in our network. Your specialist structures the file for the right one. Get matched with a specialist in under 2 minutes. No credit pull to get matched.
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