Are you a real estate investor looking for a straightforward way to finance your next property?
Non-QM DSCR loans might be the perfect solution. Unlike traditional loans, these products focus on the income-generating potential of your property rather than your personal income or tax returns. In this guide, I’ll walk you through everything you need to know about DSCR loans, how to calculate them, and how to qualify quickly with the best DSCR lenders in 2025.

What is a Non-QM DSCR Mortgage Loan?

Non-QM DSCR loans, short for Debt Service Coverage Ratio loans, are specifically designed for real estate investors. These loans fall under the category of non-qualified mortgages (Non-QM), meaning they offer flexible underwriting guidelines that cater to individuals who may not meet traditional lending standards. Instead of focusing on personal income lenders evaluate the property's ability to generate enough cash flow to cover debt payments.

How Does a DSCR Loan Work?

A DSCR mortgage for a 1-4 unit property calculates the ratio between a property’s gross rental income (GRI) and its debt obligations. Here’s how the math works:

DSCR Formula: Gross Rental Income ÷ Total Debt Service

Example: your rental property generates $8,000 monthly income and your monthly debt payment(mortgage) is $5,500.
Your DSCR is 1.45 ($8,000 ÷ $5,500 = 1.45).

Most non-QM lenders require a DSCR of at least 1.0 to qualify although we offer no ratio DSCR and DSCR's from 0.75 to 0.99 .

Want to calculate your own DSCR? Use our DSCR Loan Calculator to get started.

DSCR Loan Minimum Requirements

While DSCR loans require no personal income or employment there's still basic qualification criteria you'll need to meet such as:

Credit Score: Minimum 640 credit scores are required. Higher scores are best.
Down Payment: Typically 20-25% of the property value.
Experience: Owning or managing rental properties can strengthen your application.
DSCR: A ratio of at least 1.00 is usually needed to qualify. Although, 0.75 is allowed as well
Property Type: Detached homes, condos, townhomes, duplex, triplex, fourplex and 5-30 units.
Liquid reserves Adequate savings to cover a 3-6 months of the mortgage payment.

Why Choose Us?

Speeding up the approval process often comes down to preparation. Here's my tips:

Wholesale Rates: Access to 0.25-0.50% lower rates than others.
Fast Closings: As quick as 14 to 21 days. No endless documents requests.
Reduced Fees: 25-50% lower origination fees compared to other mortgage companies
DSCR Expertise: Exprience and knowledge leads to overcoming challenges
Almost all states: Able to close loans in 48 states (all west coast states).

Top DSCR Lenders for 2026

Choosing the right lender can make all the difference. Some of the best DSCR lenders in 2026 include those with specialized Non-QM loan programs made only for investors. Look for lenders that:

– Offer competitive rates and terms.
– Have expertise in Non-QM loan products.
– Provide streamlined application processes for fast approvals.

Need a recommendation? Contact me to discuss which of lenders is the best fit for your goals.

Still have questions?

Check our list of 20 questions about DSCR loans for a 1-unit home, duplex, triplex, four-plex as well as 5 to 10 unit properties including mixed-use properties.

A Few Success Stories

Case 1: A Tampa investor purchased a duplex using a DSCR loan by using its rental income to meet the lender’s requirements. With a 1.35 DSCR ratio, they secured a loan quickly and began earning $2,500 monthly in rental income.

Case 2: A Miami property owner expanded their portfolio with a short-term rental funded by a DSCR loan. The property’s projected income far exceeded the monthly loan payments enabling a smooth approval process.

Non-QM DSCR Loans