DSCR loan requirements
Every requirement, with the actual number — and the honest market range, because DSCR has no agency rulebook. The one below that surprises most investors: there is no minimum DSCR.
Credit from the low 600s
LTV up to 85%
No DSCR floor
46 states + D.C.
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Requirement
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Andes DSCR program
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Typical Elsewhere
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Credit score
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From the low 600s; best terms at 700+
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Most require 660–680 minimum
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DSCR ratio
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1.00 standard · 0.75–0.99 reduced-ratio · no-ratio below thatNo floor — we don't reject on ratio
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Most require 1.00–1.25; many stop at 1.0
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Down payment / LTV
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From 15% down (up to 85% LTV, 700+); 75–80% typical; cash-out 70–75%
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20–25% down (75–80% LTV)
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Cash reserves
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0 months at ≤65% LTV, scaling to 6–12 months at high LTV, large loans, or sub-1.0. Cash-out can cover it.
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Usually 6 months, rarely itemized
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Cash-out seasoning
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From none to 6–12 months, depending on the lender
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Often 6 months
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Property types
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SFR, 1–4 units, condo/PUD, condotel, STR — and 5–8 units via select programs
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Mostly 1–4 units; few do 5–8
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Entity/vesting
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Close in an LLC, LP, or corp with a personal guaranty
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LLC usually allowed
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Loan amount
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$75K–$3M (higher on select programs)
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$100K–$3M
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Occupancy & footprint
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Business-purpose, non-owner-occupied · 46 states + D.C.
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Non-owner-occupied; footprint varies
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DSCR has no agency guideline — these figures come from Andes Mortgage’s wholesale lender programs, not an industry average. Where lenders genuinely differ, we show the range.
DSCR loan requirements: The four that matter most — with the real numbers
DSCR ratio - there's no minimum
Most lenders and calculators treat 1.00 (or 1.25) as a wall. It isn’t one here. A ratio below 1.00 changes your program and pricing — not whether you can borrow.
DSCR of 1.00+
DSCR of 0.75-0.99
DSCR under 0.75
Below 1.00, expect a lower LTV or higher rate as the trade-off; below 0.75, approval shifts to the asset and your profile. Either way, the deal has a path.
Cash reserves — the tier nobody publishes
Reserves scale with risk. This is where deals quietly get held up, and almost no competitor states it numerically:
LTV ≤ 65%
65-80% LTV
LTV ≥ 80%
Loan over $1.5M
Under 1.0 DSCR
Reserves are months of PITIA held after closing — and cash-out proceeds can usually satisfy them.
Credit score — down to the low 600s
You don’t need an 680. Programs start in the low 600s; your score mainly sets your LTV ceiling and rate, not your eligibility.
700+
680-699
660-679
620-659
Cash-out seasoning - sometimes none
The wait to pull cash out varies more than any other rule. Some programs need no seasoning at all and value the loan at the new appraisal; others want 6–12 months and use your cost basis under a year. If you just finished a rehab, this is the rule to ask about first.
Every DSCR lender has different requirements – as an experienced DSCR mortgage broker, we work with lenders who have no seasoning requirements for cash-out.
The formula behind every requirement
How Andes Mortgage calculates DSCR
On interest-only loans the denominator is ITIA. The rent we count is the lower of your signed lease or the appraiser’s market-rent estimate (Form 1007); short-term-rental income counts at 75–100% depending on the lender. Because taxes and insurance sit in the denominator, they directly move your ratio — which is why a high-insurance market can change your qualifying tier.
Different lenders, different rules — that's the whole advantage of a broker
DSCR has no agency rulebook, so every lender writes its own overlays. A denial from one is not a dead deal — the next lender’s credit floor, seasoning window, or reserve tier may be exactly what your file needs.
A direct lender has one answer. We have many. When one program’s ratio or seasoning rule kills a deal, we place it with the one whose overlays fit — which is why the ranges on this page exist in the first place.
questions
DSCR requirements FAQ
Is there a minimum DSCR to qualify?
No. 1.00 is the standard bar, but we fund reduced-ratio deals from 0.75 and no-ratio deals below that. A low ratio changes your program and pricing, not your eligibility.
What credit score do I need for a DSCR loan?
Programs start in the low 600s. A higher score raises your maximum LTV and improves your rate, but it isn’t a gate — most of the eligibility work is done by the property’s income.
How much do I need for reserves on a DSCR loan?
Can one lender deny me and another approve the same deal?
Yes — and that’s the point of using a broker. DSCR overlays vary widely, so a file that misses one lender’s credit floor or seasoning window can clear another’s. We shop it across programs.
Do I have to wait to do a cash-out refinance?
Not always. Some programs require no seasoning and use the new appraised value; others want 6–12 months and use your cost basis under a year. It’s the most lender-dependent rule, so ask early — especially after a rehab.
Keep your DSCR journey
More on DSCR loans
DSCR loans overview
The full program guide
DSCR loan calculator
Run your ratio and max loan
DSCR HELOC
Tap equity without refinancing