The one-page summary

A DSCR file generally needs five categories of documentation:

1. Borrower identity + credit
2. The property (appraisal, lease, insurance, title)
3. Reserves (liquid assets)
4. Entity docs (if closing in an LLC)
5. Business-purpose certification

That is it. No W-2s, no pay stubs, no tax returns, no employment verification.

1. Borrower requirements

Credit score

Most DSCR programs start at a 660 FICO for their baseline pricing, with best pricing typically reserved for 720+. A handful of programs go down to 620 or 640 with lower LTV and higher DSCR. We'll pull your tri-merge and tell you exactly which pricing band you hit.

Credit history

• No bankruptcy, foreclosure, deed-in-lieu, or short sale within the last 3 years (some programs 4).
• No 30-day mortgage lates in the last 12 months.
• Collections and judgments reviewed case-by-case; small medical collections usually ignored.

US residency

Most DSCR programs lend to US citizens and permanent residents. Foreign-national DSCR is a specialized lane — higher rates, lower LTV, and additional documentation. We have it when you need it.

Experience

Many programs do not require prior landlord experience. Some offer better pricing when you have it. First-time investors can absolutely close DSCR loans in 2026.

2. Property requirements

Eligible property types

• Single-family rentals (SFR)
• 2–4 unit residential
• Warrantable and many non-warrantable condos
• Townhomes and PUDs
• Short-term rentals (program-specific)
• 5–8 unit multi-family on select programs

Ineligible / case-by-case

• Rural properties over a certain acreage
• Properties with significant deferred maintenance
• Unique/log homes, dome homes, mixed-use
• Mobile/manufactured on leased land

Appraisal

A full interior appraisal is required on most DSCR programs. For single-family, expect a 1004 with a 1007 rent schedule. For 2–4 unit, a 1025 with rent schedule. The appraiser's market-rent opinion drives the DSCR calculation when there is no in-place lease.

Minimum DSCR ratio

Program-dependent. The ratios you will hear most often:

• 1.25 DSCR: best pricing on most programs.
• 1.10 DSCR: standard tier.
• 1.00 DSCR: break-even; available on most programs at slightly adjusted pricing.
• <1.00 DSCR (no-ratio / sub-ratio): available with compensating factors (lower LTV, higher credit, more reserves).

3. LTV — program parameters, not a payment claim

LTV ceilings are program parameters and move with market conditions. Broadly, in a healthy 2026 market, DSCR programs reach up to 80% LTV on purchase/rate-term and slightly lower on cash-out. Exact grids depend on credit, DSCR, property type, and whether you elect a prepayment penalty. We'll quote the current grid when we price your scenario — call for current details.

4. Reserves

Most DSCR programs want 3–12 months of PITIA held in a verifiable account at closing. Reserves can be:

• Checking / savings
• Money market
• Brokerage (often counted at 70–100% of value)
• Retirement (often counted at 60–80% of value)

Two months of statements is typical. Large deposits may need a short explanation.

5. LLC vs personal — which is right for you?

You can close a DSCR loan in your personal name or in an entity. Both are common. Here is the honest trade-off:

If you own two or more rentals, an LLC is usually worth the 30-minute setup. If this is your first rental, starting in your personal name and transferring later is a valid path too — just be aware of your state's transfer rules.

LLC document package

When closing in an entity, plan on delivering:

• Articles of Organization (state-filed)
• EIN letter from the IRS
• Operating Agreement
• Certificate of Good Standing (if state issues them)
• Borrowing resolution authorizing the loan (we provide a template)

Insurance requirements

A standard DP-3 (or HO-6 on condos) landlord policy with:

• Replacement-cost dwelling coverage
• $1M liability minimum
• Loss of rents (typically 6–12 months)
• Lender as mortgagee + LLC (if applicable) as named insured

The bottom line

DSCR is a lighter documentation path than conventional — but it is not a no-documentation path. Know your credit band, have two months of bank statements ready, and if you are going the entity route, have your LLC filed before you lock rate. Do those three things and a clean DSCR file closes in three to four weeks.