DSCR (Debt Service Coverage Ratio) loans are non‑QM financing options that allow real estate investors to qualify based on a property’s cash flow rather than their personal income documentation, making them ideal for those with complex financial profiles or multiple investment properties (for more information, you can check here and here).
In a DSCR loan, lenders calculate the ratio of net operating income (NOI) to total debt service—which includes principal and interest payments—and typically require a DSCR above 1.0 to ensure positive cash flow (for more information, check here and here).
These loans often bypass traditional credit metrics such as W‑2s, tax returns, and strict debt‑to‑income ratios, allowing investors to leverage rental income projections to secure financing. Learn more from here and here.
As interest rates rise and underwriting guidelines tighten in 2025, DSCR loans have become a vital tool for portfolio expansion and refinancing rental properties, offering streamlined approvals through digital portals and reduced documentation requirements. You can find more information from here.
However, the landscape of DSCR lenders is broad—ranging from national banks to fintech platforms—and their loan terms, fee structures, and state licensing vary significantly, impacting overall cost and accessibility. You can find more information from here and here.
Selecting the right lender thus requires careful comparison of interest rates, minimum DSCR thresholds, maximum loan sizes, and ancillary fees like origination points and underwriting charges.
To save from trials and errors, this guide will address these considerations in depth, providing a state‑by‑state availability map, a comprehensive comparison table of top DSCR lenders, analyses of specialized loan programs, real‑world case studies, and insights into borrower experiences—ensuring you have all the information needed to choose the best DSCR lender for your investment goals.
Best DSCR lenders
Below are the different lenders for both local and nationwide:
State‑by‑State Lender Availability
DSCR lenders’ state coverage can vary widely—from near‑nationwide access to niche, state‑specific programs—so it’s critical to confirm whether your target lender holds the required licensing in your jurisdiction. Below is a breakdown of leading DSCR providers and the states in which they operate.
Nationwide & Near‑Nationwide Coverage
- OfferMarket operates in all 50 states, providing DSCR loan options with competitive interest rates and flexible terms, including 15-30 years and interest-only options. Their nationwide reach makes them an excellent option for real estate investors across the U.S. looking for consistent lending opportunities.
- Griffin Funding offers DSCR loans in 45 states plus the District of Columbia, leaving only five states uncovered. Their broad footprint makes them a go‑to for investors seeking consistency across multiple markets.
- Defy Mortgage provides DSCR financing in all 50 states except Minnesota, North Dakota, Rhode Island, South Dakota, and Utah, ensuring availability for most U.S. investors.
- Kiavi has an extensive network covering 45 states and Washington, D.C., with recent expansion into 13 additional markets to close national coverage gaps. In February 2025, Kiavi announced service expansion into 13 more states, further enhancing their reach to 45 states overall.
Regional & Specialty Lenders
- Angel Oak operates in 20 states—AL, CA, CO, CT, FL, GA, IN, LA, MO, NC, NM, OH, OK, PA, SC, TN, TX, UT, VA, WA, and WI—focusing on business‑purpose, cash‑flow loans for experienced investors.
- JVM Lending is available in nine states—Arizona; California; Florida; Georgia; Idaho; Massachusetts; Oregon; Tennessee; and Texas—catering to investors in key Sun Belt and Pacific markets.
- JMAC Lending supports DSCR products in select states including Alabama, Colorado, Connecticut, D.C., Delaware, Florida, and Georgia, among others—ideal for investors in the Southeast and Mid‑Atlantic regions.
State‑Focused DSCR Programs
- New Silver publishes dedicated DSCR loan pages for states like Delaware, Montana, and Wyoming, each with fixed 6.125% rates, minimum FICO of 660, and up to 80% LTV—but availability and specific terms are tailored per state.
How to Check Your State’s Availability
- Visit Lender Websites: Look for “Where We Lend” or “State Availability” sections—most DSCR lenders clearly list licensed states.
- NMLS Consumer Access: Use the Nationwide Multistate Licensing System (NMLS) lookup tool to verify a lender’s state licenses.
- Contact Loan Officers: Even if a lender doesn’t advertise coverage, they may have forthcoming licensing or partnerships in your state.
By mapping out each lender’s footprint, you can immediately eliminate ineligible providers and focus on those that serve your market—laying the foundation for a smooth DSCR loan application.
Comparison Table of Top DSCR Lenders
| Lender | Interest Rates | Minimum DSCR | Max Loan Amount | Max LTV | Funding Speed | Notes |
|---|---|---|---|---|---|---|
| Kiavi | Starting at 7.25% | 1.0 | $3 million | 80% | Fast approvals | No prepayment penalty after 3 years. |
| New Silver | From 6.125% | None | $3 million | 80% | Quick closings | Offers “No Ratio” loans. |
| Angel Oak | Varies | 0.75 | $1.5 million | 80% | Standard | 40-year fixed and interest-only options. |
| Griffin Funding | Competitive rates | 0.75 | $5 million | 80% | Fast approvals | Nationwide coverage; accepts FICO scores as low as 580. |
| A&D Mortgage | Varies | None | $3 million | 80% | Quick closings | Offers “No Ratio” DSCR loans. |
| RCN Capital | Varies | 1.0 | Up to $2 million | 80% | Fast approvals | Flexible financing options. |
| LoanStream Mortgage | Varies | 1.0 | Up to $2 million | 80% | Streamlined process | Innovative DSCR loan solutions. |
| CrossCountry Mortgage | Varies | 1.0 | Up to $3 million | 80% | Standard | Diverse loan options. |
| MoFin Lending | Varies | 1.0 | Up to $3 million | 80% | Fast approvals | Specializes in DSCR loans. |
| Defy Mortgage | Competitive rates | 1.0 | Up to $3 million | 80% | Quick closings | Offers a variety of DSCR loan programs. |
| Lima One Capital | From 5.99% | 1.0 | $2.5 million | 80% | 7-10 business days | Specializes in DSCR loans for real estate investors. |
| Visio Lending | Starting at 6.5% | 1.1 | Varies | 80% | Standard | Offers 30-year fixed-rate terms. |
| CoreVest | From 6.75% | 1.25 | Varies | 80% | Standard | Portfolio loans for multiple properties. |
| Ridge Street Capital | 6.5% – 7.75% | Varies | Up to $1.5 million | 80% | 14-21 days | Offers DSCR loans on a wide variety of property types. |
| Asset Based Lending | 5% – 9% | 1.2 | $100K+ | 80% | ≤30 days | Offers Zero-Point program; serves 36 states. |
| Tower Lending | Starting at 7.5% | Varies | Varies | Varies | Varies | Provides DSCR loans, no doc commercial mortgages, and stated income mortgages. |
| OfferMarket | 6.375% – 8.000% | 1.0 (720+ credit score), 1.2 (below 720) | Varies | Up to 80% (purchase), 75% (cash-out refi) | Quick approvals | Offers instant DSCR loan quotes; flexible terms including 15-30 years, interest-only options. |
Note: Interest rates and terms are subject to change based on market conditions and borrower qualifications. It’s essential to contact lenders directly for the most current information.
Pros and Cons of DSCR Lenders
OfferMarket
Pros:
- Competitive fixed rates (6.375%–8.000%)
- Quick approvals and instant quotes
- Flexible loan terms (15–30 years; interest-only available)
- Transparent DSCR requirements based on credit score
Cons:
- Lower LTV (75%) for cash-out refinances
- Newer platform, may lack the name recognition of legacy lenders
Kiavi
Pros:
- Fast approvals
- Up to $3M in loan size
- No prepayment penalty after 3 years
- Broad availability (45 states)
Cons:
- Rates start higher at 7.25%
- DSCR minimum of 1.0 may limit lower-cash-flow properties
New Silver
Pros:
- Low rates starting at 6.125%
- No DSCR minimum—great for properties with negative or low cash flow
- Fast closings
- Offers “No Ratio” loans
Cons:
- Less transparency on credit requirements
- May not be available in all states
Angel Oak
Pros:
- DSCR down to 0.75
- Offers 40-year fixed and interest-only options
- Ideal for flexible long-term investment strategies
Cons:
- Lower max loan size ($1.5M)
- Rates not disclosed—can vary widely
Griffin Funding
Pros:
- Accepts FICO as low as 580
- Large loan amounts (up to $5M)
- Competitive nationwide coverage
Cons:
- No clear rate floor disclosed
- Some states not covered
A&D Mortgage
Pros:
- No DSCR requirement—allows “No Ratio” loans
- Fast closings
- Good option for investors with unconventional income
Cons:
- Rate and LTV details not fully transparent
- May have stricter guidelines on property types
RCN Capital
Pros:
- Flexible loan programs
- Fast approvals
- Solid reputation in investor lending
Cons:
- Smaller loan cap ($2M max)
- DSCR must be 1.0 or higher
LoanStream Mortgage
Pros:
- Streamlined approval process
- Innovative loan structuring
- Supports up to $2M
Cons:
- Limited detail on DSCR flexibilities
- Less information available publicly
CrossCountry Mortgage
Pros:
- Diverse loan options
- Known traditional lender with DSCR offerings
Cons:
- No standout perks for real estate investors
- Slower funding speeds
MoFin Lending
Pros:
- Fast approvals
- Strong focus on DSCR lending
- Loans up to $3M
Cons:
- No standout benefits vs. competitors
- DSCR must be 1.0 or above
Defy Mortgage
Pros:
- Offers various DSCR programs
- Competitive rates
- Fast closings
Cons:
- No unique underwriting features
- DSCR minimum of 1.0
Lima One Capital
Pros:
- Low starting rates (from 5.99%)
- Strong reputation among real estate investors
- Specialized in DSCR loans
Cons:
- Longer funding timeline (7–10 business days)
- Max loan capped at $2.5M
Visio Lending
Pros:
- Offers fixed 30-year terms
- Well-known among long-term buy-and-hold investors
Cons:
- Higher DSCR minimum (1.1)
- Funding not as fast as others
CoreVest
Pros:
- Allows portfolio loans for multiple properties
- Competitive rates
Cons:
- Higher DSCR requirement (1.25)
- Loan amount and term flexibility not clearly defined
Ridge Street Capital
Pros:
- DSCR loans for wide property types
- Moderate rates (6.5–7.75%)
Cons:
- Lower loan cap ($1.5M)
- Longer closing timeline (up to 21 days)
Asset Based Lending
Pros:
- Fast closings (≤30 days)
- Offers Zero-Point option
- Serves 36 states
Cons:
- DSCR must be 1.2 or higher
- Higher rate range (5–9%)
Tower Lending
Pros:
- Offers DSCR, stated income, and no-doc commercial loans
- Variety of loan types
Cons:
- No rate or loan cap details disclosed
- Variable LTV and DSCR depending on loan type
DSCR Lenders: FAQs
What is a DSCR Loan?
A DSCR loan is a type of real estate financing that evaluates a property’s ability to generate income sufficient to cover its debt obligations. Instead of focusing on the borrower’s personal income, lenders assess the property’s cash flow, making it an attractive option for investors with non-traditional income sources.
Also, you can learn about the difference between dscr loan vs hard money loan.
How is DSCR Calculated?
DSCR is calculated by dividing the property’s Net Operating Income (NOI) by its total debt service (principal and interest payments). For example, if a property has an NOI of $120,000 and annual debt payments of $100,000, the DSCR would be 1.2. A DSCR above 1 indicates positive cash flow, while below 1 suggests the property doesn’t generate enough income to cover its debts.
What is the Minimum DSCR Required for Loan Approval?
The minimum DSCR requirement varies among lenders, but a ratio of 1.25 is commonly preferred. Some lenders may accept lower ratios, especially if other aspects of the loan application are strong, but a higher DSCR generally indicates a safer investment for the lender.
Do DSCR Loans Require Personal Income Verification?
Typically, DSCR loans do not require traditional personal income verification like W-2s or tax returns. Lenders focus on the property’s income-generating potential. However, they may still consider the borrower’s credit history and other financial indicators.
Can I Use a DSCR Loan for Any Property Type?
DSCR loans are primarily used for income-producing properties such as rental homes, multifamily units, and commercial real estate. They are not typically used for primary residences or properties that don’t generate consistent rental income.
What Credit Score is Needed for a DSCR Loan?
While requirements vary, a credit score of at least 620 is often needed to qualify for a DSCR loan. Higher credit scores can lead to better loan terms and interest rates. Some lenders may have more flexible criteria, especially if the property’s income is strong.
Are DSCR Loans Available Nationwide?
Availability depends on the lender. Some lenders offer DSCR loans in all 50 states, while others may be limited to specific regions. It’s important to check with individual lenders to determine their service areas.
What are the Typical Interest Rates for DSCR Loans?
Interest rates for DSCR loans can vary based on the lender, the borrower’s creditworthiness, and the property’s income potential. Generally, rates may be slightly higher than traditional loans due to the increased risk associated with investment properties.
How Much Down Payment is Required?
DSCR loans often require a down payment of 20% to 25%. The exact amount can vary depending on the lender’s policies and the specifics of the property. A larger down payment may improve loan terms.
Can Foreign Nationals Qualify for DSCR Loans?
Yes, some lenders offer DSCR loans to foreign nationals. These loans focus on the property’s income rather than the borrower’s citizenship status. However, additional documentation and higher down payments may be required.
Are There Prepayment Penalties?
Some DSCR loans include prepayment penalties, especially if the loan is paid off early in its term. These penalties compensate lenders for the loss of anticipated interest income. It’s crucial to review loan terms carefully to understand any prepayment conditions.
How Quickly Can a DSCR Loan Be Closed?
The closing timeline for DSCR loans can vary but typically ranges from 2 to 4 weeks. Factors influencing the timeline include the lender’s processing speed, the completeness of the application, and property appraisals.
Can I Use a DSCR Loan for Property Refinance?
Yes, DSCR loans can be used to refinance existing investment properties. This can be beneficial for accessing equity, securing better loan terms, or consolidating debt. The property’s income will still be the primary qualification factor.
Are DSCR Loans Suitable for First-Time Investors?
DSCR loans can be suitable for first-time investors, especially those with strong credit and a solid investment plan. However, experience in property management may be considered by some lenders during the approval process.
What Documentation is Needed for a DSCR Loan?
While personal income documentation is often not required, lenders will need:
- Property income statements
- Lease agreements
- Property appraisal
- Credit report
- Identification documents
Additional documents may be requested based on the lender’s requirements.
Can I Use a DSCR Loan for Short-Term Rentals?
Some lenders allow DSCR loans for short-term rental properties, but this varies. Lenders may require evidence of consistent rental income and may assess the property’s location and demand. It’s essential to discuss this with potential lenders.
What Happens if the Property’s Income Decreases?
If the property’s income decreases, it could impact your ability to meet loan obligations. Lenders may have clauses in the loan agreement addressing such scenarios. It’s important to maintain a financial buffer and have contingency plans in place.
Are DSCR Loans Fixed or Adjustable Rate?
DSCR loans can be either fixed or adjustable-rate, depending on the lender’s offerings. Fixed-rate loans provide consistent payments, while adjustable-rate loans may start with lower rates that can change over time. Choose based on your investment strategy and risk tolerance.
Can I Use a DSCR Loan for Multiple Properties?
Yes, some lenders offer portfolio DSCR loans, allowing investors to finance multiple properties under a single loan. This can simplify management and potentially offer better terms. Eligibility and terms will vary by lender.
Conclusion
In conclusion, selecting the best DSCR loan lender is a critical step for real estate investors looking to leverage income-generating properties. The right lender can make a significant difference in securing favorable terms, competitive rates, and faster approvals. Providers like Kiavi, Griffin Funding, Angel Oak, and OfferMarket offer a wide array of options tailored to different investor needs, from nationwide coverage to flexible loan structures.
When choosing a DSCR lender, it’s important to assess factors such as loan-to-value ratio (LTV), minimum DSCR requirements, funding speed, and the types of loan products available. Each lender brings unique benefits to the table, whether you prioritize fast approvals, lower interest rates, or specialized loan options like interest-only terms.
Ultimately, understanding your investment goals and comparing lenders will ensure you find the most suitable option for your real estate ventures, allowing you to maximize returns and streamline your investment process.