DSCR Loan Playbook
How to Get a DSCR Loan
The 8-step playbook our DSCR borrowers actually follow — from FICO check and rent analysis through appraisal and closing in 15-21 days.
- 1
Decide if DSCR is the right product for you
DSCR loans qualify on the property's rental cash flow — no W-2s, tax returns, or DTI calculation. They're built for investors, not primary residences. If you're self-employed, own 4+ financed properties already, want to vest in an LLC, or need to close in under 30 days, DSCR usually wins over conventional. If you're buying your first rental on a strong W-2 income, a conventional investor loan may price cheaper.
- 2
Check your credit — Total Quality Lending DSCR starts at 640 FICO
The minimum representative credit score for our DSCR program is 640. The top LTV tier (80% on purchase) unlocks at 700–740 FICO depending on loan size. Pulling your three-bureau report through AnnualCreditReport.com is free; we use the middle of the three or the lowest of two for the decision credit score.
- 3
Pick a property whose rental income covers PITIA (DSCR ≥ 1.00)
DSCR = Monthly Gross Rents ÷ Monthly PITIA (Principal + Interest + Taxes + Insurance + HOA). A ratio of 1.00 means the rent exactly covers the loan payment plus carrying costs. 1.00+ qualifies for max LTV. Below 1.00 caps lower (75% max purchase at 700 FICO with $1M-$1.5M loan amounts). Short-term rentals use gross rents × 0.80 for a 20% expense factor.
- 4
Gather your down payment and reserves (typically 20–25% down at 80% LTV)
80% LTV means 20% down. With state overlays (CA, CT, FL, IL, NJ, NY) capping at 75% LTV, plan for 25% down in those states. Most lenders also want 6 months PITIA in reserves after closing. Gift funds are allowed after the borrower contributes their first 10% from their own funds — except on foreign national DSCR, where gift funds are not permitted.
- 5
Decide your vesting — personal name vs LLC
DSCR loans permit both. LLCs (most commonly Wyoming, Delaware, or the state where the property sits) give liability separation and clean per-property bookkeeping. Many investors use a single-member LLC. There's no DSCR pricing difference between personal name and LLC vesting at Total Quality Lending — same rate, same LTV.
- 6
Submit your application to Total Quality Lending
We need: the property address (or a target market), an estimated rent (from a lease or 1007/1025 market rent), your driver's license or passport, proof of down payment funds and reserves, and authorization for a soft credit pull. No tax returns. No paystubs. No W-2s. Decisions usually come back inside 24-48 hours, with a full quote that locks rate and LTV.
- 7
Underwriting & appraisal (Day 5–12)
Once you're under contract, the file moves to underwriting. An appraiser pulls a 1004 (single-family) or 1025 (2-4 unit) report and includes a 1007 rent schedule. The lower of the lease rent or the 1007 market rent is what's used in the DSCR calculation. Title search runs in parallel. Most clean files get a clear-to-close in 7-10 business days.
- 8
Closing (Day 15–21)
Funds wire to title from your bank or business account. You sign at a notary, in-office, or via remote online notarization where state law permits (most states). The deed records. The property is yours. Typical total timeline from application to keys: 15-21 days for a clean file with a cooperating seller.
DSCR loan — FAQs
How long does it take to get a DSCR loan?
15-21 days from a fully completed application to closing on a clean file. The bottleneck is usually the appraisal and the title search, not underwriting. We close in two weeks regularly when the seller is ready.
What's the minimum credit score for a DSCR loan?
640 FICO for Total Quality Lending's DSCR program. Below 640 we'd need to look at a different non-QM product. The best terms — 80% LTV — unlock at 700-740+ depending on loan size.
Can I get a DSCR loan with no money down?
No. DSCR is a leverage product, not a zero-down product. Minimum down is 20% (80% LTV) in most states, 25% with state overlays. Foreign national borrowers put 25% down.
Do you pull my credit before quoting?
We do a soft pull for the initial quote (no FICO impact). A hard pull happens only after you accept the quote and we move to underwriting. Borrowers on a co-signed DSCR loan don't have their SSN pulled — DSCR is qualified on the property, not the borrower's debt history.
What loan amounts does Total Quality Lending DSCR cover?
$100K to $3.5M per loan. Above $3.5M we'd quote a portfolio/jumbo program. Most of our DSCR closings sit in the $200K-$800K range.
Ready to start your DSCR file?
We’ll quote your deal in 24 hours and close in two-to-three weeks. No income docs, no tax returns, no DTI math.