DSCR loans, placed nationwide.
A DSCR loan qualifies on the property's rent instead of your personal income. No tax returns, no W-2, no debt-to-income calculation. Because these are business purpose loans rather than consumer mortgages, we place them for investors across the country, not only in Illinois.
The property qualifies, not you.
Gross monthly rent
Divided by the full monthly payment
Full PITIA
Principal, interest, taxes, insurance and association dues
Tax returns, W-2s, paystubs
No employment verification, no debt-to-income ratio
You or your LLC
Entity vesting is standard here, unlike conventional financing
A property renting for $2,600 against a full PITIA of $2,500 carries a DSCR of 1.04. Run your own numbers on the DSCR calculator, which also explains what each ratio band means and which levers move it when a file comes up short.
Why a DSCR loan is not bound by state like a home loan.
| A mortgage on the home you live in | A DSCR loan on a rental | |
|---|---|---|
| Purpose of the credit | Personal, family or household | Business |
| Governed by | TILA, RESPA, Ability to Repay | Exempt as business purpose credit |
| Qualifies on | Your income and debt-to-income ratio | The property's rent |
| Where we can originate | Illinois, where we are licensed | Nationwide, subject to the state the property is in |
Federal law draws the line at the purpose of the loan, not the type of building. Credit extended primarily for a business or commercial purpose is exempt from Truth in Lending under 12 CFR 1026.3(a), and the licensing regime for mortgage loan originators is tied to loans made "primarily for personal, family, or household use." A loan on a rental you do not live in generally is not that. It is why a broker licensed in one state can place investor financing in many.
This is a genuine structural difference, not a loophole, and it is not unlimited. A handful of states regulate lending on one to four unit investment property regardless of the business purpose, and in a few states the answer changes depending on whether the borrower is a person or an entity. We check the state your property sits in before quoting it. Ask us about a specific state rather than assuming.
Where our DSCR files typically price.
| Item | Typical | Notes |
|---|---|---|
| Credit | 660+ | Higher scores open better pricing tiers |
| DSCR floor | 1.0x | Sub-1.0 is available on select investors, priced higher |
| Max LTV | 80% | Best pricing sits at 75% |
| Structure | 30-year fixed or 7/6 ARM | Interest-only available, which lifts the ratio |
| Income documents | None | Lease or appraiser's market rent schedule instead |
| Typical close | 14 to 18 days | Faster than a conventional file, since there is no income to verify |
These are the parameters most of our DSCR files land in. They are not a rate sheet and not a commitment to lend. See indicative pricing for what the market looks like today, and the program summary for how DSCR sits alongside the rest of the panel.
The same property, three different borrowers.
| File A | File B | File C | |
|---|---|---|---|
| Rent | $2,600 | $2,600 | $2,600 |
| Full PITIA | $2,050 | $2,500 | $2,900 |
| DSCR | 1.27 | 1.04 | 0.90 |
| Reads as | Comfortable | Clears the floor | Below 1.0 |
| Usual outcome | Best pricing tier | Approvable, a step back on rate | Select lenders only, more down or a higher rate |
| Lever that helps most | None needed | Interest-only, or a little more down | More down payment, or recheck the market rent |
Illustrative arithmetic on a single rent figure, not quotes. The point is that the gap between an easy file and a hard one is often a few hundred dollars of monthly payment, which is usually a down payment decision rather than a property decision.
The terms nobody publishes clearly.
| Lender | Minimum DSCR | Reserves | Prepayment penalty |
|---|---|---|---|
| Easy Street Capital | No stated minimum | 3 to 9 months PITIA | 5/4/3/2/1 declining, flexible options at a rate tradeoff |
| Kiavi | As low as 0.8x | States no cash reserve requirement | None after year 3 |
| Lima One Capital | 1.0, best pricing at 1.2+ | Not published | Described only as flexible |
| Angel Oak | Sub-1.0 and no-ratio available | Not published | Not published |
| Griffin Funding | No stated minimum, no-ratio program | Referenced, not quantified | Typically 1 to 5 years |
Every figure above is taken from that lender's own published pages, checked September 2026, and left blank where the lender does not disclose it. The spread on reserves is the widest variable in the product: one lender asks for nine months of payments in the bank, another says none at all. On a $300,000 loan that is the difference between needing roughly $22,000 in reserves and needing nothing, on the same property. That is what shopping the panel is actually for, and it is worth reading what reserves each lender actually asks for before you pick one.
Airbnb income, and how it gets documented.
Short-term rental income is usable on many DSCR programs, but it is documented differently from a long-term lease. With a signed twelve-month lease the number is simply the rent. With a short-term rental there is no lease, so lenders fall back on market data: the appraiser's rent schedule, a documented booking history from your own operating statements, or a third-party market report such as AirDNA. Angel Oak and Griffin Funding both publish that they accept AirDNA-style analysis, and Easy Street Capital publishes that no prior short-term rental history is required. Lima One runs short-term rental files under separate criteria from its standard rental program.
Two practical consequences. First, a property with strong seasonal nightly rates can underwrite better than its long-term lease would suggest. Second, because the qualifying income comes from a market report rather than a contract, the lender's choice of data source can change your ratio. If the property is a short-term rental, say so at intake rather than after the appraisal.
When a DSCR loan is the wrong tool.
| Your situation | Better route | Why |
|---|---|---|
| You will live in the property | Conventional, FHA or VA | A DSCR loan cannot be used on an owner-occupied home. It is business purpose credit by definition. |
| W-2 income, first or second rental | Conventional investment loan | Conventional usually prices better. DSCR earns its keep once income documentation or property count becomes the obstacle. |
| Selling or refinancing within two years | Negotiate the prepay first | A declining prepayment penalty can cost more than the rate saved. Structure beats rate on a short hold. |
| Thin reserves and a sub-1.0 ratio | Wait, or put more down | Below 1.0 the pricing and reserve requirements both tighten. Sometimes the honest answer is that this property does not work yet. |
We would rather tell you a file does not work than run it into an underwriter and bill you the appraisal to find out. If conventional is cheaper on your file, we will say so, and we can write that one too when the property is in Illinois.
What investors ask.
Can you really do this outside Illinois?
Yes, for investment property. Our consumer mortgage license is an Illinois license, and conventional, FHA and VA loans on a home you live in are Illinois only. DSCR and other business purpose loans on rental property are a different category of credit and we place those nationwide, subject to the rules of the state the property sits in. A handful of states regulate this lending regardless of purpose, so we confirm the state before quoting.
What credit score do I need?
Most of our DSCR files sit at 660 or better, and higher scores open better pricing tiers. The market floor is lower than that at some lenders. Griffin Funding publishes a 620 minimum and Easy Street Capital publishes 640, while Angel Oak requires 680 for its 75% tier and 720 to reach 85%. Credit moves your rate and your maximum leverage more than it moves your approval.
How much do I need for a down payment?
Plan on 20% to 25%. Maximum leverage is commonly 80% on a purchase and a step lower on a cash-out refinance, so 20% down is the usual floor and 25% is where pricing tends to be best. Putting more down also lifts your DSCR, because it lowers the payment the rent has to cover.
Do I need cash reserves?
It depends entirely on the lender, and this is the least standardized part of the product. Easy Street Capital publishes 3 to 9 months of PITIA. Kiavi publishes no cash reserve requirement at all. Several lenders do not disclose it publicly. Because the range is that wide, reserves are worth asking about before you pick a lender rather than after.
Is there a prepayment penalty?
Usually yes, and that is normal for this product rather than a red flag. A common structure is a declining penalty over five years, and many lenders will shorten or remove it in exchange for a higher rate. If you expect to sell or refinance inside three years, raise it at the start, because the right structure is a different decision than the lowest rate.
Can I close in an LLC?
Usually yes, and most DSCR borrowers do. Entity vesting is standard on these programs, unlike conventional financing where it causes problems. Lima One requires the property to be held in an entity. Angel Oak accepts an LLC, S-corp, C-corp or revocable trust. Griffin Funding lends to a US LLC with a personal guarantee. Note that in a few states the licensing analysis changes depending on whether the borrower is an entity or an individual.
How is this different from a conventional investment property loan?
A conventional investment loan still underwrites you: tax returns, debt-to-income, and a limit on how many financed properties you can carry. A DSCR loan underwrites the property. For a W-2 borrower with one or two rentals, conventional is often cheaper. For a self-employed borrower, or anyone past the conventional property count, DSCR is usually the route that exists at all.
How fast does a DSCR file close?
Typically 14 to 18 days, faster than a conventional purchase, because there is no employment or income documentation to chase. The appraisal and its rent schedule are usually the critical path.
Price a property across the panel.
Send the address, the rent and the rough numbers. We will shop it and tell you what it actually prices at, including the states where it will not work. No credit pull to start.