DSCR Loans for Real Estate Investors in 2026

Debt Service Coverage Ratio (DSCR) loans are non-QM mortgage products designed specifically for real estate investors. Instead of qualifying based on personal income, lenders look at whether the property's rental income covers the mortgage payment. This makes them ideal for investors with complex tax returns or numerous investment properties.

How DSCR Is Calculated

DSCR = Gross Rental Income / Total Mortgage Payment (PITIA). A DSCR of 1.0 means the rent exactly covers the payment. Most lenders require a minimum DSCR of 1.0–1.25. Example: $2,400 rental income / $2,000 mortgage = 1.2 DSCR — this would qualify with most lenders.

DSCR Loan Requirements in 2026

• Minimum credit score: typically 640–680
• Minimum down payment: 20–25%
• DSCR minimum: 1.0 (some lenders go as low as 0.75 with higher rates)
• Property types: single-family, 2–4 unit, short-term rental (Airbnb/VRBO)
• Loan limits: typically up to $3–5 million
• No income documentation required — just lease agreements or market rent appraisal

Short-Term Rental DSCR

Many DSCR lenders now accept Airbnb and VRBO rental income. They'll typically use the trailing 12-month booking history or an AirDNA market analysis to project annual revenue. STR properties often yield higher income than long-term rentals, which can improve DSCR significantly.

Best DSCR Lenders in 2026

• Visio Lending — Specialist in single-family rental DSCR loans
• CoreVest Finance — Focus on 5+ unit and portfolio DSCR
• Griffin Funding — Flexible DSCR down to 0.75
• Angel Oak Mortgage — Non-QM specialist including DSCR
• Kiavi — Technology-focused DSCR for single-family investors