Best DSCR Lenders
In 2026, finding the right DSCR lender is essential for real estate investors looking to maximize their returns. This guide explores the top DSCR lenders, outlining key features, benefits, and considerations to help investors make informed decisions.
Whether you’re seeking flexible terms, streamlined approvals, or tailored loan solutions, this article breaks down everything you need to know to find the best fit for your investment strategy.
Best DSCR Lenders at a Glance
Not every investor has time to read through six lender profiles before making a phone call. The table below offers a side-by-side snapshot of the best DSCR lenders covered in this guide, so you can quickly compare the details that matter most to your deal.
| Lender | Typical DSCR Range | Max LTV | Loan Term | Property Types | Best For |
|---|---|---|---|---|---|
| New Silver Lending | 0.75 | Up to 80% | 30-year fixed | 1–4 unit, SFR, condos, PUDs | Investors who want flexible DSCR requirements and fast closings |
| Kiavi | Varies by deal | Up to 80% | 30-year fixed (5/1 & 7/1 ARM available) | SFR, PUDs, 2–4 unit | Portfolio landlords seeking competitive rates |
| Griffin Funding | From 0.75 | Varies (80% down payment) | 30-year options | SFR, 2–4 unit, condos | Higher loan amounts up to $5M |
| Angel Oak | Varies by deal | Varies | 40-year fixed | Investment residential | Investors seeking longer amortization and interest-only options |
| Truss Financial Group | Varies (including no-ratio) | Varies | 30-year fixed | Investment residential | Borrowers whose rental income falls short of full coverage |
| Lima One Capital | 1.0+ (1.5 for short-term rentals) | Up to 75% | 5, 10, and 30-year | SFR, 2–4 unit, multifamily | Experienced investors with strong credit and higher DSCR properties |
What Are DSCR Loans?
A Debt Service Cover Ratio (DSCR) loan is geared particularly towards real estate investors. DSCR loans are essentially investment property loans based on the cash flow of an investment property, where the income generated is enough to cover the debt owed. In this case, a positive cash flow is key, and the rental come will need to cover not only the operating expenses, but also the loan repayments.
DSCR loans are quite different from conventional loans in that they don’t require any personal financial information and loan applications are based heavily on the debt service coverage ratio. These loans are geared towards real estate investors who have complicated finances and are trying to invest in a profitable property.
Best DSCR Loan Companies
Choosing a DSCR lender isn’t like picking the cheapest flight – there’s no single “winner” that works for every investor.
The lenders below were selected because they focus on rental-property underwriting, qualify borrowers primarily through DSCR-based criteria, serve real estate investors nationwide, and offer loan programs accessible to a range of experience levels.
Here’s how each one stacks up:
1. New Silver Lending
New Silver is a tech-driven direct lender built specifically for real estate investors, offering DSCR loans, fix and flip financing, ground up construction loans, and small balance commercial loans — all through a fast, fully online platform. Where most lenders make you wait days just for a term sheet, New Silver generates one instantly, and for investors who need to move quickly on a deal, that speed advantage is hard to overstate.
New Silver’s DSCR loan is a 30-year fixed-rate product with rates starting from 5.75
%, loan amounts up to $3,000,000, and LTVs up to 80% — one of the higher leverage options available in the market. The minimum DSCR is just 0.75, well below the 1.2 threshold most lenders demand, which opens the door for properties with thinner cash flow margins that would be turned away elsewhere. Eligible properties include 1-8 unit residential rentals and short-term vacation rentals, with no prior experience required to qualify. There are no junk fees, cash-out refinancing is available, and borrowers can get an instant proof of funds letter — making New Silver a strong fit for investors at every stage of building a rental portfolio.
2. Kiavi
Kiavi offers various fix and flip loans, as well as rental loans, to real estate investors. Kiavi’s rental loans are DSCR loans — no tax or income documents are needed in the application. The program is built around the cash flow of the property itself.
Kiavi’s rental loan product offers rates starting at 7.250% with an LTV of up to 80%. There is no pre-payment penalty after 3 years, for investors who wish to settle their debt quicker. There are 5/1 and 7/1 amortized loans available, and the properties that qualify include single-family, PUDs, and 2–4 unit properties.
These are 30-year fixed-rate loans with interest-only options available, making Kiavi a solid pick for buy-and-hold investors building out a rental portfolio.
3. Griffin Funding
Griffin Funding operates countrywide and provides DSCR loans, VA home loans, traditional mortgages, non-QM loans and commercial loans. Their DSCR product is structured as a no-income mortgage loan for real estate investors.
Griffin Funding’s DSCR loan is a type of non-QM loan. The lender doesn’t require any personal income verification or job history for qualification. They offer maximum loan amounts of $5 million, with a 20% down payment and a debt service coverage ratio as low as 0.75. That high ceiling on loan size makes Griffin worth a look if you’re targeting pricier markets or larger multifamily deals.
4. Angel Oak
Angel Oak is a private lender that provides both conventional and unconventional loans, including bank statement home loans, investor cash flow loans, jumbo home loans, and portfolio select home loans.
The investor cash flow loan is Angel Oak’s DSCR product, geared towards real estate investors seeking loans of up to $1.5 million. This is a 40-year fixed loan with interest-only options available. There is no limit to the number of properties, and no income or employment information is needed.
The longer 40-year term is notable — it lowers monthly obligations, which can be useful for investors focused on maximizing cash-on-cash returns.
5. Truss Financial Group
Truss Financial Group offers a variety of mortgage products, including DSCR mortgages, fix and flip loans, bank statement mortgages, jumbo reverse mortgages, self-employed mortgages, and more.
The DSCR loans offered by Truss are 30-year fixed-rate loans from $100,000 to $3 million. Qualification is based on rental income covering the debt service.
What makes Truss so notable is their “no ratio” loan option — designed for investors whose rental income doesn’t fully cover the debt. That’s a meaningful differentiator for anyone looking at properties in transitional markets or those undergoing lease-up.
6. Lima One Capital
Lima One Capital allows real estate investors to work with the in-house team of experts the entire way through the loan, without third parties getting involved. As a private lender, Lima One Capital offers rental loans, fix and flip loans, construction loans, and multi-family loans.
Their short-term rental loans are DSCR loans based on the rental property’s income. A DSCR of 1.0 or more is required, with the bar rising to 1.5 for short-term rental properties, along with a minimum FICO of 700.
Loans can be structured as fixed-rate, ARM, interest-only, fully amortized, or balloon. There are 5, 10, and 30-year options available.
Investors can get up to 75% LTV on purchases, and 70% on cash-out refinances. Lima One tends to suit more experienced investors who bring strong credit and well-performing assets to the table.
What DSCR Do Lenders Look For?
Ultimately, DSCR lenders want to see that the investment property’s income can cover the debt repayments. They aren’t looking at your personal income records or running employment verification checks. That said, there are a few requirements that come up across most programs.
Debt Service Coverage Ratio
Lenders are often looking for a DSCR of 1.2 or more, which means the property’s income will cover the loan repayments and then some. Some lenders require more than this, some less — New Silver, for instance, accepts ratios as low as 0.75 — but 1.2 is a reasonable benchmark to keep in mind.
Eligible Properties
The property needs to qualify for this type of loan, which means it should be a rental property. That can include single-family homes, multi-family buildings, 2–4 unit properties, PUDs, or condos. Exact eligibility varies by lender.
Credit Score
While no personal income information is required, lenders are often looking for investors who have a credit score of at least 660, if not more. Your credit profile still matters — it just isn’t the centrepiece of the application.
Loan Amount
The loan amount will need to fall within the range that the lender is prepared to offer. Most DSCR loan maximum amounts sit around $1 million or $2 million, though some lenders — like Griffin Funding — go up to $5 million.
Are DSCR Loans Hard Money?
Hard money loans are asset-based, which means that they are loans provided by using the asset (usually a property) as collateral. Hard money loans are typically provided by private lenders and are therefore not subject to the same regulations as traditional loans. Hard money loans are short-term loans often used by real estate investors.
DSCR loans loans differ from traditional hard money loans as they are offered by various types of lenders, not just hard money lenders. DSCR loans generally have terms of 30 years in most cases, whereas hard money loans are typically short term, meaning 24 months or less. In addition, DSCR loans aren’t necessarily asset-based either, but rather use the property’s cash flow to determine if the debt will be covered and mitigate risk.
What Kind of Property Can You Buy with A DSCR Loan?
A DSCR loan allows real estate investors to buy rental properties, both short-term and long-term. These rental properties can be single-family homes, 1–4 unit properties, vacation homes, and commercial or multi-family properties.
DSCR lenders provide funding for a variety of properties that conventional lenders don’t, though the focus is squarely on rental properties for real estate investors. The list of eligible properties can vary from lender to lender but often includes single-family homes, condos (including non-warrantable), planned urban developments, 2–4 unit properties, LLC-owned properties, and multi-family properties.
Should You Apply for A DSCR Loan?
A DSCR loan is suited to real estate investors with complex financial situations who need investment property loans to purchase good property deals. DSCR loans are well-suited to investors who don’t want to provide income and employment verification, those who are self-employed, and those who own several investment properties and cannot borrow any more from traditional lenders to fund their next investment.
Investors who wish to buy and hold rental investment property, as well as investors who wish to buy and trade, can consider using a DSCR loan. Essentially, any real estate investor who would like to get funding based on the good cash flow of their rental property can consider these loans.
Some of the benefits of DSCR loans include:
- Quicker loan closing and applications due to the fact that no personal income information is needed.
- Unlimited number of properties can be bought using DSCR loans.
- Simultaneous investment property purchases can be done.
- There’s less documentation as personal finances are not considered.
- New investors can get into the real estate world more easily using these loans.
That said, DSCR loans aren’t the right tool for every situation. If a property is vacant or has inconsistent rental income, qualifying can be difficult — especially with lenders that enforce stricter DSCR minimums. Properties in markets with soft rental demand may also struggle to hit the ratios lenders expect.
And because DSCR loan rates tend to be higher than conventional mortgages, investors should make sure the numbers still work after accounting for the cost of financing. As with any funding route, weigh the pros and cons carefully before committing.
How to Choose a DSCR Lender That Fits Your Strategy
With several lenders on the market, the real question isn’t who the best DSCR lenders are, but who is the best fit for the way I invest? To that end, a few things are worth thinking through before you apply.
- DSCR flexibility vs minimums: Some lenders hold firm at a 1.2 minimum. Others, like New Silver, will work with ratios well below 1.0. If your property is still in lease-up or sitting in a market where rents haven’t hit full capacity, that flexibility could be the difference between getting funded and getting declined.
- Rate vs total cost trade-offs: A lower interest rate looks great on paper, but origination fees, prepayment penalties, and closing costs can quietly eat into your returns. Compare the full picture, not just the headline number.
- LTV expectations: A lender offering 85% LTV means less cash out of your pocket on day one — which frees up capital for your next deal. If you’re scaling a portfolio, that leverage adds up fast.
- Property-type alignment: Not every DSCR lender finances short-term rentals, condos, or properties held in an LLC. Check that box early so you don’t waste time on an application that was never going to close.
Execution reliability: A lender that can close in days rather than weeks isn’t just a convenience — in competitive markets, it’s a genuine advantage. Ask about timelines, communication, and whether you’ll be dealing with a dedicated team or getting passed around.
Key Takeaways for Comparing DSCR Lenders
Ultimately, the best DSCR lender is the one that aligns with your investment goals, property type, and appetite for leverage, rather than the one with the lowest advertised rate. Comparing actual terms, DSCR flexibility, and total loan costs will serve you far better than chasing a single number.
DSCR lending has become one of the most practical tools available for rental investors looking to scale without the friction of traditional income verification. If you’re weighing your options, take the time to explore DSCR loan programs and see which lender structure fits your portfolio.
FAQs About DSCR Lenders
Most lenders look for ratios between 0.75 and 1.25, though requirements vary by lender, property type, and loan structure.
Generally no. DSCR loans qualify based on property cash flow, not W-2s or tax returns, though some documentation may apply.
Some DSCR lenders finance short-term rentals. Others only cover long-term leases. Eligibility depends on how rental income is evaluated.
Yes. DSCR rates are typically higher due to different risk profiles, but offer flexibility and scalability for rental investors.
Expect 20–25% as a starting point. Exact requirements vary by lender, DSCR ratio, property type, and market conditions.
Yes. Many DSCR lenders work with first-time investors. Approval is based largely on the property’s income, not borrower experience.
Lenders typically use in-place lease rates or market rent from an appraisal, measured against monthly property expenses.
Additional Resources
DSCR Loan Interest Rates
Find out the latest DSCR Loan Interest Rates here. This guide explores what rate you are likely to qualify for.
DSCR Loan Requirements
First and foremost there must be a rental property to evaluate, but there are other DSCR Loan Requirements.
DSCR Loan Calculator
This DSCR Calculator makes it easy to workout DSCR Ratio, and it also estimate maximum loan amount and monthly repayments.
DSCR Loan Pros & Cons
There are advantages and disadvantages associated with DSCR Loans. This guide outlines all the DSCR Loan Pros & Cons.
DSCR Loan For Airbnb
It is definitely possible to get a DSCR Loan For Airbnb properties. Short term rentals qualify for DSCR Loans.
DSCR Loan vs Hard Money Loan
This investor guide explains the key differences between a DSCR Loan vs Hard Money Loan.
DSCR Loan vs Conventional Loan
This investor guide explains the key differences between a DSCR Loan vs Conventional Loan.
Short Term Rental Loans (STR Loans)
Short term rental (STR) loans are tailored to the specific needs and challenges of the short term rental market.