A DSCR loan sizes up the deal instead of the borrower: if the property's rent covers its full monthly payment, you qualify — no W-2s, no tax returns, no debt-to-income math. It's how 85% of Lineage investors finance (as of Q1 2026), and it's the reason a fifth property is no harder to close than a first.
We've written about DSCR from every angle. This page is the map. Start wherever your question is.
Start with the basics
New to DSCR? One article covers the whole picture: the ratio, the requirements, the process, and where it fits in a portfolio.
What is a DSCR loan? Everything investors need to know →
Want just the vocabulary? The glossary defines DSCR, PITIA, and LTV in plain language.
Check whether your deal qualifies
The math is one division problem: monthly rent ÷ full monthly payment (principal, interest, taxes, insurance, HOA). At 1.0 the rent covers the payment. Most lenders approve there, and pricing improves at 1.25 and up.
- Run your numbers in the DSCR calculator → Ratio, payment, and the maximum loan the property supports. Instant, no signup.
- How to calculate DSCR → The formula, worked examples, and the gross-rent vs. NOI distinction that trips people up.
- DSCR loan requirements → Credit floors (typically 680), down payment (20–25%), reserves (6–12 months), and the rent evidence lenders actually check.
Understand what it costs
The old knock on DSCR was the rate premium. That story is out of date: against a conventional investor mortgage — the loan actually competing for the same rental — DSCR pricing currently runs at parity, sometimes slightly lower. Every investment property loan prices above the owner-occupied rates you see advertised.
- DSCR loan rates: what actually sets your rate → The three rates investors confuse and the four inputs that price your loan.
- DSCR loan pros and cons: the honest ledger → Including the ones lenders don't lead with: reserves, prepayment penalties, and rent-evidence risk.
Decide if it's right for you
DSCR isn't the answer for everyone. A first-time buyer with clean W-2 income and no plans to scale can do fine with conventional. The profile that outgrows conventional: anyone planning property three, anyone self-employed, anyone who wants the LLC on the deed.
- DSCR vs. conventional mortgage → The full side-by-side: qualification, documentation, speed, limits.
- DSCR loans for self-employed investors → Why business owners with healthy income and aggressive deductions are the product's natural fit.
The essentials, at a glance
| Term | Typical |
|---|---|
| Minimum DSCR | 1.0 (pricing improves at 1.25+) |
| Down payment | 20–25% |
| Credit score | 680+ |
| Loan term | 30-year fixed standard (20- and 15-year available) |
| Reserves | 6–12 months of the full payment |
| Prepayment | 5-year declining standard (opt-out at a higher rate) |
Terms vary by lender, property, and market conditions. Not a rate quote or a commitment to lend.
How it works at Lineage
Lending is coordinated with acquisition, insurance, and title from day one — everything moves in parallel, which is how closes average about 22 days, and as few as 13 when financing, inspection, and insurance line up cleanly. Pre-qualification takes hours and prices your real deal instead of a hypothetical.
See how Lineage Lending works →
Educational content, not financial advice or a commitment to lend. Loan terms and pricing vary by lender, property, and market conditions.