DSCR Loan Requirements 2026 — Credit, Down Payment, Ratio
Everything you need to know to qualify for a DSCR loan this year.
Nate Jones · NMLS #304056 · New American Funding
DSCR loan requirements in 2026 include a minimum 660 credit score, 20-25% down payment, and a debt service coverage ratio of 1.0 or higher — meaning the property's rental income must at least cover the mortgage payment. No personal income verification is needed. Nate Jones (NMLS #304056) at New American Funding closes DSCR loans for investors in 48 states.
2026 DSCR Loan Requirements
Min Credit Score
660 (720+ for best rates)
Down Payment
20-25% (15% with 720+ credit)
Min DSCR Ratio
1.0 (1.25+ for best terms)
Income Docs
None required
Property Types
SFR, 2-4 unit, condo, townhome
Rental Types
Long-term, Airbnb, VRBO
Max Loan Amount
Up to $3M+
Reserves
6-12 months PITIA typical
How DSCR Is Calculated
DSCR = Monthly Rental Income / Monthly Debt Service (PITIA)
Example: Property rents for $2,500/month with a $2,000/month total payment (principal, interest, taxes, insurance, HOA).
DSCR = $2,500 / $2,000 = 1.25 — Qualifies for best rates.
What You Don't Need
- ✓No W-2s or pay stubs
- ✓No tax returns
- ✓No employment verification
- ✓No DTI ratio calculation
- ✓No existing rental history (projected rent accepted)