Real estate investors love DSCR loans (Debt Service Coverage Ratio loans) because they make it easy to qualify based on a property’s rental income—not your personal income. Whether you’re scaling your rental portfolio, refinancing to pull equity, or investing through an LLC, DSCR loans are one of the most powerful tools available in 2025.
But not all DSCR loans are created equal. Interest rates, down payments, qualifying criteria, and flexibility vary by lender.
In this guide, we’ll compare the top DSCR loan programs in 2025, break down their rates and features, and help you choose the best one based on your strategy.
Get matched with the best DSCR loan lenders for your 2025 investment goals
🧠 What Is a DSCR Loan?
A DSCR loan is a type of non-QM mortgage designed for real estate investors. It allows you to qualify based on the rental income of the property, not your personal income or tax returns.
DSCR Formula:
DSCR = Gross Monthly Rent ÷ Monthly PITIA (Principal, Interest, Taxes, Insurance, HOA)
Most lenders require a DSCR of 1.0–1.25, meaning the property must generate at least enough rent to cover its expenses.
🔗 Learn the fundamentals in our DSCR Loan Guide
🏆 Best DSCR Loan Lenders & Programs (2025)
Here’s a comparison of the top DSCR lenders for 2025, including loan terms, DSCR minimums, and unique features.
1. Visio Lending
- Min DSCR: 1.0
- Max LTV: 80% purchase / 75% cash-out
- Loan Amounts: Up to $2M
- Terms: 30-year fixed, interest-only available
- Best For: Short-term rentals and new investors
- Bonus: No property limit, no personal income docs
2. Kiavi
- Min DSCR: 1.1+
- Max LTV: 75%
- Loan Amounts: Up to $1.5M
- Terms: 30-year fixed or ARM (5/1, 7/1), 10-year IO
- Best For: Digital-first investors and fix-and-hold strategies
- Bonus: Fast closings with strong tech integrations
3. CoreVest
- Min DSCR: 1.0
- Max LTV: 75%
- Loan Amounts: $150K–$2M+
- Terms: 30-year fixed, portfolio/blanket loans offered
- Best For: Portfolio landlords with 5+ properties
- Bonus: Blanket loans and cross-collateralization allowed
4. Angel Oak Mortgage Solutions
- Min DSCR: 1.0 (No-ratio options available)
- Max LTV: 75% cash-out / 80% purchase
- Loan Amounts: Up to $3M
- Terms: 30- or 40-year, IO options
- Best For: Experienced investors and high-balance loans
- Bonus: Allows LLC and foreign national borrowers
5. New Silver
- Min DSCR: No minimum (no-ratio allowed)
- Max LTV: 75%
- Loan Amounts: $100K–$2M
- Terms: 30-year fixed, IO optional
- Best For: Investors with vacant or underperforming properties
- Bonus: Accepts AirDNA projections for STRs
🔗 Use our Loan Comparison Calculator to evaluate your options.
💰 Typical DSCR Loan Rates in 2025
| Loan Type | Interest Rate Range (Apr 2025) |
|---|---|
| 30-Year Fixed | 7.25% – 9.00% |
| Interest-Only (IO) | 7.75% – 9.50% |
| Adjustable (5/1 or 7/1) | 7.00% – 8.75% (initial period) |
| No-Ratio Programs | Add 0.5%–1.0% to base rate |
Rates depend on:
- Credit score
- Loan-to-value (LTV)
- DSCR ratio (higher DSCR = better rate)
- Loan amount
- Property type (STRs, condos, multifamily)
💡 Tip: Many DSCR loans include prepayment penalties (typically 3–5 years). Accepting one can lower your rate.
📋 Standard DSCR Loan Requirements (2025)
| Criteria | Typical Range or Rule |
|---|---|
| Minimum Credit Score | 660+ (some as low as 620) |
| Minimum DSCR | 1.0–1.25 (some allow lower or none) |
| Max LTV | 70–80% (higher for purchases) |
| Property Types | 1–4 units, condos, STRs, small multifamily |
| Ownership | Personal name or LLC (LLC often preferred) |
| Documentation | Lease agreement or market rent via appraisal |
| Reserves | 6–12 months of PITIA payments |
🧠 What Makes a DSCR Loan Program “Better”?
When comparing programs, focus on:
- Flexibility: Does the lender allow STRs, LLCs, blanket loans?
- Speed: How fast can they close?
- Underwriting Tolerance: Do they accept lower DSCRs or vacant properties?
- Interest Rates: What’s the base rate and pricing for risk tiers?
- Fees and Penalties: Any junk fees? Prepay penalty structure?
A “better” DSCR loan is the one that matches your goals, timeline, and risk tolerance.
Get matched with the best DSCR loan lenders for your 2025 investment goals
🛠️ Best Use Cases for DSCR Loans in 2025
- Cash-Out Refinancing
Tap into equity from appreciated rentals to fund new deals.
🔗 Read our Cash-Out Refinance Guide - Short-Term Rentals (STRs)
Finance Airbnb properties using projected or actual income. - BRRR Strategy
Recycle capital fast after rehabbing and renting a property.
🔗 See How to Use DSCR for BRRR - Refinancing Bridge or Hard Money Loans
Replace expensive short-term debt with long-term fixed-rate DSCR financing. - Portfolio Expansion
No limit on number of financed properties = scale quickly.
🔗 Helpful Resources
- DSCR Loan Overview
- Loan Comparison Calculator
- Affordability Calculator
- Bank Statement Loans for Self-Employed
📣 Final Thoughts
The right DSCR loan program can unlock rapid portfolio growth, long-term stability, and financial freedom—especially for self-employed or full-time investors.
Whether you’re financing your next Airbnb or refinancing to pull equity, make sure you compare rates, DSCR minimums, and lender flexibility before moving forward.
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.