Dscr Loan Requirements

[inshya]

I’m trying to understand the DSCR Loan Requirements for real estate and business financing. Lenders often look at the Debt Service Coverage Ratio to check whether a property’s income can cover loan payments, but different lenders seem to have different minimum DSCR levels.

 

[jainnorton]

The Debt Service Coverage Ratio (DSCR) of the property must be 1.0x or greater (ideally 1.2x+) for DSCR loans, indicating that the rental income is sufficient to pay the mortgage. Additionally, a down payment of 20–25% and a minimum credit score of 660–680 are typically required.

 

[peterkavinsky]

A DSCR loan requires proving strong cash flow from an investment property. Lenders mainly look for a Debt Service Coverage Ratio of 1.0–1.25+, meaning the rental income must cover loan payments. Other requirements usually include a good credit score (typically 620+), property appraisal, lease/rent history, and a down payment of around 20–25%.

 

[Emly]

A DSCR loan typically requires a DSCR of 1.0–1.25, a credit score around 620+, 20–25% down payment, proof the property can generate rental income, and an appraisal that supports the investment.

 

[Lucky]

A DSCR loan usually requires a Debt Service Coverage Ratio of 1.20 or higher, meaning your income exceeds debt obligations. Lenders also check credit score (typically 650+), property income history, down payment capability, cash reserves, and financial documents. Strong cash flow and reliable rental or business income increase approval chances.