What is the minimum DSCR needed to qualify for a DSCR loan?

Started by accountingbyte, Jan 15, 2025, 06:37 AM

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accountingbyte

The minimum Dscr Loan Requirements expected usually varies between 1 and 1.25 for different lenders. A DSCR of 1 is achieved when the property income complements the loan's debt in its entirety. Lenders seem to like 1.25 or above because it shows they have a buffer for other cost or less rent income. Holders of lower DSCR value still can qualify by providing a higher down payment, paying more interest and providing better evidence of stability to minimize the risk to the lender.

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