Learn key DSCR loan requirements in 2026, including minimum 660 FICO scores, 1.00 DSCR ratios, 20-25% down payments, LLC vesting, and cash reserves.
TL;DR: DSCR loans qualify real estate investors based on property cash flow rather than personal income, requiring a minimum 660 FICO, 1.00 DSCR ratio, 20-25% down payment, and LLC vesting. Without tax returns or property caps, investors can scale portfolios efficiently through streamlined business-purpose underwriting.
A field-tested breakdown of every DSCR loan requirement in 2026 — credit score, DSCR ratio, down payment, reserves, entity, and property criteria — from a lender that underwrites these files daily.
Qualify using property cash flow (DSCR 1.00+) with no tax returns, employment checks, or DTI limits.
Minimum 660 FICO score required, though credit scores of 720+ unlock significantly better interest rates.
Expect 20-25% down payments for purchases and 3-6 months of PITIA cash reserves post-closing.
Title must be taken in an LLC or corporation, which can be formed during the loan process.
Improve borderline DSCR ratios by buying down interest rates, utilizing interest-only options, or increasing down payments.
What credit score do I need for a DSCR loan? Most DSCR programs require a minimum FICO score of 660. Best pricing opens at 720 to 760, though select no-ratio programs accept credit scores as low as 620 with higher down payments.
How much down payment does a DSCR loan require? Purchase DSCR loans generally require a down payment of 20% to 25% (75-80% max LTV). Cash-out refinances typically cap at 70-75% LTV.
Do DSCR loans require an LLC? Yes, because DSCR loans are business-purpose mortgages, title is almost always held in an LLC or corporation, which can be established during the loan process.
How many DSCR loans can an investor have? There is no cap on the number of properties you can finance with DSCR loans, unlike conventional Fannie Mae loans that cap at 10 properties.