DSCR Program Guidelines
The complete eligibility matrix from the Total Quality Lending DSCR program — credit tiers, LTV by FICO and loan amount, reserves, property types, short-term rental rules, and state-by-state prepayment overlays. All numbers are direct from our published program guidelines (subject to underwriting guidelines).
Crunch your own numbers first? Use the DSCR calculator.
When the property’s rents fully cover its PITIA (DSCR at or above 1.00), the standard DSCR matrix applies. Maximum LTV depends on FICO and loan amount as shown below. “NA” means the combination is not eligible.
| Min FICO | Max loan amount | Purchase | Rate/Term | Cash-Out |
|---|---|---|---|---|
| 740+ | $2,500,000 | 80% | 80% | 80% |
| 720 | $1,000,000 | 80% | 80% | 80% |
| $1,500,000 | 80% | 80% | 80% | |
| 700 | $1,000,000 | 80% | 75% | 75% |
| $1,500,000 | 80% | 75% | 75% | |
| $2,000,000 | 75% | 70% | 70% | |
| $3,000,000 | 70% | 65% | 65% | |
| $3,500,000 | 70% | 65% | NA | |
| 660 | $1,000,000 | 75% | 75% | 70% |
| $1,500,000 | 75% | 70% | 70% | |
| $2,000,000 | 70% | 65% | 65% | |
| $2,500,000 | 70% | 65% | 65% | |
| $3,000,000 | 65% | NA | NA | |
| 640 | $1,000,000 | 75% | 70% | NA |
| $1,500,000 | 65% | 65% | NA | |
| $2,000,000 | 65% | NA | NA | |
| $3,000,000 | 60% | NA | NA |
DSCR loans below 1.00 are eligible with a 660 FICO floor and reduced maximum LTVs. The lowest documented combination is 660 FICO at 65% LTV purchase, capped at $1M loan amount.
| Min FICO | Max loan amount | Purchase | Rate/Term | Cash-Out |
|---|---|---|---|---|
| 700 | $1,000,000 | 75% | 70% | 70% |
| $1,500,000 | 75% | 70% | 70% | |
| $2,000,000 | 70% | 65% | 65% | |
| $2,500,000 | 65% | NA | NA | |
| $3,000,000 | 60% | NA | NA | |
| 680 | $1,000,000 | 70% | 65% | NA |
| $1,500,000 | 70% | 65% | NA | |
| $2,000,000 | 65% | 60% | NA | |
| $3,000,000 | 60% | NA | NA | |
| 660 | $1,000,000 | 65% | NA | NA |
Monthly Gross Rents (from FNMA Form 1007/1025 market-rent estimate or the executed lease) divided by PITIA — principal, interest, taxes, insurance, and any association/HOA dues. Interest-only loans use ITIA.
DSCR = Gross Rents ÷ PITIA
Monthly gross rents on a 12-month average, reduced by a mandatory 20% expense factor (advertising, furnishings, cleaning). If actual expenses exceed 20%, the actual factor is used; the 20% minimum applies otherwise. Purchase LTV cap 80%; rate/term and cash-out cap 75%.
DSCR = (Gross Rents × 0.80) ÷ PITIA
Acreage is permitted up to 5 acres. Properties exceeding this are evaluated under the non-agency seller guide.
A borrower who has not previously owned a property for rental, resale, or other investment purposes. Eligible subject to all of the following:
The borrower or guarantor must have a history of owning and managing commercial or non-owner-occupied residential real estate for at least one year in the last three years.
Late mortgage payments and prior credit events (bankruptcy, foreclosure, short sale, deed-in-lieu, pre-foreclosure, mortgage charge-off, forbearance, modification, deferral) carry overlays on maximum LTV.
Prepayment periods up to 5 years are eligible (see your rate sheet for current structures). State exclusions and per-state caps apply.
Minimum 2 tradelines reporting 24 months with activity in the last 12 months, or 3 tradelines reporting 12 months with recent activity. The minimum is waived when the borrower or guarantor has three credit scores.
Minimum 30 days of asset verification. Gift funds are allowed after a minimum 10% borrower contribution.
120-day maximum document age on all credit, income, and asset documentation.
DSCR stands for Debt Service Coverage Ratio. It measures whether a rental property generates enough income to cover its monthly housing payment. DSCR = Monthly Gross Rents ÷ PITIA. A DSCR of 1.00 means rents exactly equal the housing payment; above 1.00 means the property cash-flows; below 1.00 means it doesn't.
The standard DSCR tier requires a DSCR of 1.00 or higher. A DSCR below 1.00 is allowed at reduced LTV with a 660 FICO floor; the lower the DSCR, the lower the maximum LTV. The full matrix is shown above. Subject to underwriting guidelines.
640 FICO is the absolute floor for the DSCR ≥ 1.00 tier — purchase and rate/term only at reduced LTV — no cash-out at 640. Cash-out refinance requires a 660 FICO. The DSCR < 1.00 tier starts at a 660 FICO (limited to $1M at 65% LTV purchase) and opens up at 680 and 700 FICO.
STR DSCR = (Monthly Gross Rents × 0.80) ÷ PITIA. The 20% expense factor is mandatory per program guidelines (advertising, furnishings, cleaning). Income is documented on a 12-month average to account for seasonality. If actual expenses exceed 20%, the actual expense factor is used; otherwise the 20% minimum applies.
$100,000 to $3,500,000. Loans under $150,000 are capped at 70% LTV purchase and 65% LTV refinance and require a DSCR of at least 1.00. Cash-in-hand is capped at $500,000 when LTV exceeds 65%, or $1,000,000 when LTV is below 65%.
Yes, with restrictions: a first-time investor must have a 700+ FICO, a DSCR above 1.00, a one-unit property, at least 36 months from any credit event, and must already own a primary residence. First-time homebuyers (no primary) are not eligible on DSCR.
Single-family attached and detached, 2–4 unit properties, and condominiums. Condo-hotels: maximum 75% LTV purchase and 65% refinance, $1,500,000 max loan. Rural properties: maximum 75% LTV purchase and 70% refinance. Maximum acreage is 5 acres.
Two months of PITIA for standard loans, 6 months for loans over $1.5M, and 12 months for loans over $2.5M. Cash-out refinance proceeds may be used to satisfy the reserve requirement on the 1–4 unit DSCR program.
Yes. Interest-only requires a 680+ FICO, with a maximum 75% LTV on purchase and rate/term and 70% on cash-out. The 40-year term is eligible with the interest-only feature on ARMs. For IO loans, DSCR is calculated as Gross Rents ÷ ITIA (interest + taxes + insurance + association dues).
Prepayment periods up to 5 years are eligible (see rate sheet for current structures). Penalties are not allowed in AK, KS, MI, MN, NM, and RI. Penalties are not allowed on loans vested to individuals in IL and NJ. Penalties are not allowed on loan amounts under $319,777 in PA. In OH, penalties on 1–2 unit properties cannot exceed 1% of the loan balance during the first five years.
Plug in rent and PITIA to see your DSCR. STR toggle applies the mandatory 20% expense factor.
Find state-specific overlays and DSCR availability across the U.S.
Larger residential and mixed-use deals have their own program — different LTV, reserve, and eligibility rules.
A loan strategist who invests in real estate too can map your numbers to the right tier on the matrix.