DSCR Loan Requirements: Credit, Down Payment, Reserves & Property Types

Published July 2026 · By the SLA Capital team

The pitch on DSCR loans is simple: the property qualifies, not you. No tax returns, no W-2s, no debt-to-income math. But "no income docs" doesn't mean "no requirements." Here's the actual checklist a DSCR underwriter works through — and where the flexible lanes are.

1. The DSCR ratio itself

The core requirement is the ratio the loan is named for: monthly rent ÷ monthly payment (PITIA — principal, interest, taxes, insurance, association dues). A ratio of 1.0 means the rent exactly covers the payment. Most lenders want 1.0–1.2 or better for standard pricing, and many — including SLA — have a below-1.0 lane at adjusted terms for strong deals in appreciating markets.

Rent is established by the lease in place or, if the property is vacant, by the appraiser's market-rent report (the 1007). At SLA, no active lease is required at closing — market rent is enough. For the full mechanics, see DSCR Loans Explained.

2. Credit score

Because the property carries the income side of the equation, your personal credit is one of the few borrower-level factors that still matters. Industry-wide, the practical floor is a 660 mid FICO, with meaningful pricing tiers as you climb: roughly 680, 700, 720, and 740+. The difference between a 680 file and a 740 file can be measurable on the rate sheet, so if you're a few points below a tier and a month away from a credit-card payoff posting, it can literally pay to wait.

Credit events (foreclosure, bankruptcy, short sale) usually need 2–4 years of seasoning depending on the lender. Recent late mortgage payments are the item underwriters weight most heavily.

3. Down payment and LTV

DSCR purchase loans typically require 20–25% down — that is, 75–80% loan-to-value. SLA Capital lends up to 80% LTV on purchases and rate-and-term refinances, and up to 75% on cash-out. LTV caps step down for lower credit tiers, lower DSCR ratios, and less common property types, so the advertised maximum is the ceiling for a clean file, not a promise for every file.

4. Reserves

Most DSCR lenders want to see 3–6 months of PITIA in reserves after closing — liquid funds (bank, brokerage) demonstrating you can carry the property through a vacancy. Reserves usually scale with portfolio size: an investor financing their eighth property will be asked for more cushion than one financing their first. Funds just need to be sourced and seasoned in your accounts; retirement accounts often count at a discount.

5. Eligible property types

The standard DSCR box covers:

• Single-family rentals — the bread and butter
• 2–4 unit properties — duplexes through fourplexes
• Condos and townhomes — warrantable projects price best
• Small multifamily and portfolios — 5+ units and multi-asset portfolio loans exist as separate programs at most shops

Short-term rentals (Airbnb/VRBO) are lender-specific: some qualify them on market long-term rent, some on documented STR revenue. Rural properties, unique builds, and mixed-use tend to need a conversation rather than a rate sheet.

6. Entity: yes, close in your LLC

DSCR loans are business-purpose loans, and closing in an LLC is standard — most investors do. The members sign a personal guaranty and credit is pulled on the guarantors, but the loan, title, and liability sit with the entity. This is a real advantage over conventional financing, which generally requires you to hold title personally.

7. What you won't be asked for

• Tax returns or W-2s
• Employment verification
• Personal debt-to-income calculation
• A cap on how many financed properties you already own — DSCR lenders don't inherit Fannie Mae's 10-property limit

SLA Capital's DSCR box at a glance

Rates from 5.75% on a 30-year fixed. Loans from $55K to $3M. Up to 80% LTV. 3-month seasoning on cash-out refinances — one of the shortest windows in the industry (here's why that matters for BRRRR). No lease required at closing. Available in 42 states — find yours on the DSCR program page.