DSCR Loan 2026: No W-2s, Rates from 6.12% — Complete Guide
DSCR loans let real estate investors qualify using rental income only — no W2s, no tax returns, no personal income verification. Rates from 6.12%, 1.0 DSCR minimum, 620+ credit, 20% down. Compare 8 best DSCR lenders with current July 2026 rates.
Compare DSCR Lenders — Rates from 6.12%
No W2s. No tax returns. Qualify on rental income. Close in 14-21 days. Get quotes from 8+ DSCR lenders.
📅 Updated for July 2026: DSCR rates dropped to 6.12% (from 8-9% in 2024). New 1.0 DSCR minimum now standard at most lenders. Griffin Funding now offers 0.75 DSCR for negative cash flow properties. See updated lender comparison table below.
Quick Answer: What is a DSCR Loan?
A DSCR loan (Debt Service Coverage Ratio loan) is an investment property mortgage where you qualify based on the rental income the property generates, not your personal income. No W2s, no tax returns, no pay stubs required.
July 2026 rates: 6.12% - 7.85% depending on DSCR ratio, credit score, and down payment. Minimum 1.0 DSCR, 620+ credit, 20% down. Close in 14-21 days.
📊 DSCR Loan Rates by Lender — July 2026
Compare current DSCR loan rates from 8 top lenders. Rates updated July 25, 2026. Get personalized quotes from all 8 lenders →
| Lender | Starting Rate | Min DSCR | Min Down | Min Credit | Max LTV | Closing | Best For |
|---|---|---|---|---|---|---|---|
| New SilverBEST RATE | 6.12% | 1.0 | 20% | 660 | 80% | 21 days | Lowest starting rate |
| Kiavi | 6.25% | 1.0 | 20% | 660 | 80% | 14 days | Fastest closing |
| Lima One Capital | 6.35% | 1.0 | 25% | 640 | 75% | 21-30 days | Fix-and-flip specialist |
| Visio Lending | 6.40% | 1.0 | 20% | 660 | 80% | 21 days | Portfolio loans |
| Rocket Mortgage | 6.50% | 1.25 | 25% | 680 | 75% | 30-45 days | Brand trust + online portal |
| Griffin Funding | 6.45% | 0.75 | 25% | 620 | 75% | 21-30 days | Lowest DSCR minimum (0.75) |
| Anchor Loans | 6.55% | 1.0 | 25% | 640 | 75% | 14-21 days | Fix-and-flip + rental |
| Park Capital Finance | 6.60% | 1.0 | 20% | 620 | 80% | 21-30 days | No income verification, flexible |
Rates as of July 25, 2026. Actual rates vary by property type, location, DSCR ratio, credit score, and loan-to-value. Get your personalized rate quote →
🧮 How DSCR Loans Work
DSCR stands for Debt Service Coverage Ratio. It measures whether a property's rental income can cover its mortgage payments. The formula is simple:
DSCR = Monthly Rental Income ÷ Monthly Mortgage Payment (PITIA)
Example: A property rents for $2,500/month. The mortgage payment (P&I + taxes + insurance + HOA) is $2,000/month. DSCR = $2,500 / $2,000 = 1.25. This means the property generates 25% more income than the mortgage costs.
1.25+
STRONG
Best rates. Easy approval. 25%+ cash flow buffer.
1.0-1.24
ACCEPTABLE
Most lenders accept. Slightly higher rates.
< 1.0
NEGATIVE CASH FLOW
Property loses money. Only Griffin Funding accepts (0.75 min).
PITIA = Principal + Interest + Taxes + Insurance + HOA. Lenders use market rent from the appraisal, not actual rent you're collecting. This means even vacant properties can qualify if the market rent supports the DSCR.
✅ DSCR Loan Requirements 2026
Minimum Requirements
- • DSCR: 1.0 minimum (1.25+ for best rates)
- • Credit Score: 620 minimum (720+ for best rates)
- • Down Payment: 20% minimum (25% for best rates)
- • Property Type: 1-4 unit residential, condos, townhomes
- • Occupancy: Investment/rental only (no owner-occupied)
- • Loan Amount: $75K - $3M (varies by lender)
What's NOT Required
- • ❌ No W2s or pay stubs
- • ❌ No tax returns (personal or business)
- • ❌ No employment verification
- • ❌ No debt-to-income (DTI) calculation
- • ❌ No income documentation at all
- • ❌ No PMI (regardless of down payment)
💡 Pro tip: The property qualifies, not you. Even if you have no income, no job, or complex tax situations, you can get a DSCR loan if the property's rental income covers the mortgage. Check if your property qualifies →
⚖️ DSCR Loan vs Conventional Investment Property Loan
| Feature | DSCR Loan | Conventional |
|---|---|---|
| Income Verification | None (rental income only) | Full (W2s, tax returns, DTI) |
| Starting Rate | 6.12% | 7.00% |
| Min Credit Score | 620 | 680 |
| Min Down Payment | 20% | 15% (with PMI) / 20% |
| PMI | Never | Required if < 20% down |
| Closing Time | 14-21 days | 30-45 days |
| Max Properties | Unlimited | Max 10 financed properties |
| Best For | Self-employed, investors, multiple properties | W2 buyers, single property, lowest rate |
DSCR Calculator — Free, No Signup
Calculate your DSCR ratio, monthly cash flow, cap rate, and ROI. See if your investment property qualifies.
📋 DSCR Loan Process — Step by Step
Find a DSCR Lender
1 dayCompare DSCR lenders using the table above. Get rate quotes from 3-5 lenders. Most offer online pre-qualification in minutes with no credit pull.
Submit Property + Rent Estimate
1-3 daysProvide property address, purchase price, and expected rent. Lender orders a rent survey from appraiser to confirm market rent.
DSCR Calculation + Approval
3-5 daysLender calculates DSCR using market rent / PITIA. If DSCR ≥ 1.0, you're approved. Rate locked based on DSCR, credit score, and LTV.
Property Appraisal + Inspection
5-10 daysAppraiser confirms property value and market rent. Inspection may be required for older properties. No personal property inspection needed.
Closing
14-21 days totalSign closing documents. No income docs needed at closing — just property docs and ID. Fund the loan and start collecting rent.
🎯 Who Should Get a DSCR Loan?
✅ DSCR Is Perfect For...
- • Self-employed investors with complex taxes
- • Real estate investors with 5+ properties (Fannie Mae limits: 10 max)
- • Buyers who can't verify income traditionally
- • LLC or entity-owned property purchases
- • Investors who want fast closing (14-21 days)
- • Foreign nationals buying US investment property
- • Investors with high DTI from other mortgages
❌ DSCR Is NOT For...
- • Owner-occupied purchases (must be investment/rental)
- • Buyers who want the absolute lowest rate (conventional is 0.5-0.75% lower)
- • Those with less than 20% down payment
- • Primary residence or second home purchases
- • Buyers with credit scores below 620
- • Properties that can't generate enough rent (DSCR < 0.75)
💰 DSCR Loan Costs Breakdown
| Cost | Amount | Notes |
|---|---|---|
| Down Payment | 20-25% | $80K-$100K on $400K property |
| Interest Rate | 6.12-7.85% | Based on DSCR, credit, LTV |
| Origination Fee | 1-2 points | $4K-$8K on $400K loan |
| Appraisal | $600-$800 | Includes rent survey |
| Title Insurance | $1,500-$2,500 | Varies by state |
| PMI | $0 | No PMI on DSCR loans |
Example: $400K property, 25% down ($100K), $300K loan at 6.37% for 30 years = $1,872/mo P&I. With taxes ($367/mo) and insurance ($100/mo) = $2,339/mo PITIA. If market rent is $2,800, DSCR = 1.20. Calculate your DSCR →
❓ DSCR Loan FAQ
What is a DSCR loan?
A DSCR loan qualifies you based on rental income, not personal income. No W2s, no tax returns. Rates from 6.12% in July 2026.
What DSCR ratio do I need?
Most lenders require 1.0 minimum. 1.25+ gets best rates. Griffin Funding accepts 0.75 for negative cash flow properties.
What are current DSCR rates?
July 2026: 6.12%-7.85%. Best rates (6.12-6.35%) need 1.25+ DSCR, 720+ credit, 25%+ down.
How much down payment for DSCR?
20% minimum, 25% for best rates. No PMI regardless of down payment. $80K-$100K on $400K property.
Can I get a DSCR loan with no income?
YES. DSCR loans require NO income verification. The property qualifies based on rental income alone.
Which DSCR lender has the lowest rate?
New Silver starts at 6.12%. Kiavi at 6.25%. Lima One at 6.35%. Compare all 8 lenders in the table above.
How fast can I close a DSCR loan?
14-21 days with most DSCR lenders. Kiavi closes in 14 days. Conventional takes 30-45 days.
Can I use a DSCR loan for my primary residence?
No. DSCR loans are for investment/rental properties only. For primary residence, use conventional, FHA, or VA loans.
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