DSCR

A good DSCR ratio in 2026 is 1.25 or higher. That number means a rental property earns 25% more than its loan payment, which unlocks the best loan terms. A ratio of 1.0 is the usual minimum, it means the property just breaks even. As someone who helps real estate investors qualify for these loans, … Read more

Most DSCR lenders want to see about 3 to 12 months of loan payments saved in the bank, called “reserves.” The exact amount depends on the lender, your credit, and the property. Reserves are simply cash you have set aside to cover the loan if something goes wrong, like a month with no tenant. In my … Read more

Yes, you can use a DSCR loan to buy a multi-family property and it’s one of the best ways to do it. A multi-family property is a building with more than one home in it, like a duplex (two units), a triplex (three), or a fourplex (four). Because these buildings often earn strong rent from several … Read more

Yes, you can get a DSCR loan even if the property has no rental history at all. This surprises a lot of new investors, but it’s true. Instead of looking at past rent, the lender uses an expert’s estimate of what the property could rent for. I’ve helped many first-time investors buy their very first rental this … Read more

Yes, many lenders offer DSCR loans on short-term rentals and Airbnb properties. A DSCR loan qualifies you using the property’s rental income instead of your personal income or tax returns. For short-term rentals, lenders usually calculate income one of two ways: from 12 months of documented booking history, or from a market rent estimate. Expect … Read more