What is the minimum DSCR to qualify?

Most of TAG Lending Group's investors go as low as a 0.75 DSCR. First-time investors may need a 1.00 or higher, and No-Ratio programs are available when the rent does not need to cover the payment.

How much down payment do I need for a DSCR purchase?

Some DSCR investors allow as little as 15% down on a purchase. TAG Lending Group recommends 25% down so the property cash flows and to avoid Loan-Level Price Adjustments (LLPAs), which can apply when the rent does not cover the mortgage payment. Down payment, reserves and closing costs vary by investor, DSCR, credit and experience.

What rent can be used to qualify for a DSCR loan?

A signed long-term lease, the appraiser's market rent schedule (Form 1007), or short-term rental income such as Airbnb or VRBO based on rental history or market data, depending on the investor.

Can I close a DSCR loan in an LLC?

Yes. DSCR loans qualify on the property's rent, so you can close in your LLC with no tax returns, W-2s or pay stubs, and you can add a partner or family member to title or the LLC to qualify with their credit.

Is there a seasoning requirement for a DSCR cash-out refinance?

No ownership seasoning is required with some of our investors. Others require 6 to 12 months of ownership before a cash-out.

Loan Programs

DSCR Investor Loan 85% LTV Program

Q: How do you calculate DSCR?

DSCR = monthly rent divided by monthly PITIA (principal, interest, taxes, insurance and HOA). A 1.00 ratio means the rent covers the full payment. Above 1.00, the property cash flows.

A flexible investment property financing solution designed for real estate investors who want to qualify using property cash flow, with high-leverage options up to 85% LTV for eligible scenarios.

Connect To A Loan Officer Explore Program Details

Program Overview

The DSCR Investor Loan 85% LTV Program is designed for real estate investors who want flexible financing based on the cash flow potential of the investment property. Instead of relying on traditional personal income qualification, this program may use the property’s rental income and debt-service coverage ratio to help eligible investors purchase or refinance rental properties with higher leverage.

Program Features

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Designed for real estate investors financing rental and investment properties.

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May allow financing up to 85% LTV for eligible borrower and property scenarios.

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Qualification may be based on the property’s rental income and cash flow potential.

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Can support eligible purchase and refinance investment property scenarios.

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A helpful option for investors who want to grow or optimize their rental property portfolio.

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Can be reviewed with a loan officer based on property type, rental income, DSCR, credit, down payment, and investor goals.

Why Choose This Program?

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Helps investors qualify using rental property cash flow instead of traditional personal income documentation.

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Can provide higher leverage for eligible investment property opportunities.

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Supports investors who want to scale their portfolio with a property-performance-focused loan option.

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Gives realtors another solution for investor clients purchasing rental or income-producing properties.

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May create more flexibility for borrowers with complex income or multiple investment property holdings.

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Creates a clear path to review rental income, cash flow, leverage, and investment goals with a loan officer.

Who This Program Is Great For?

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Real estate investors purchasing income-producing rental properties.

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Borrowers refinancing existing investment properties and reviewing higher leverage options.

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Investors who want to qualify based on rental income and property cash flow.

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Self-employed investors or borrowers with complex personal income documentation.

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Portfolio investors who want a financing option focused on property performance.

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Realtors working with investor clients looking for flexible rental property financing.

DSCR Investor Loan 85% LTV Program Overview

Download Loan Program

Preview the loan program sheet and download the full DSCR Investor Loan 85% LTV Program details instantly.

Download Loan Program

Co-Brand Loan Program

Access the co-branded version to share this DSCR Investor Loan 85% LTV Program with your clients and Co-Org Loan partners.

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Need Help Structuring a DSCR Investor Loan?

Connect with a loan officer to review your investment property scenario, DSCR, leverage options, and best next step.

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How We Calculate DSCR: The 1.00 Ratio

DSCR = Monthly Rent ÷ Monthly PITIA (principal, interest, taxes, insurance and HOA). A 1.00 ratio means the rent covers the full payment. Example: $2,900 rent ÷ $2,900 PITIA = 1.00. Above 1.00, the property cash flows. Below 1.00? Most of our investors go as low as a 0.75 DSCR, and No-Ratio programs are available when the rent doesn't need to cover the payment.

Rent We Can Use

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A signed long-term lease.

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The appraiser's market rent schedule (Form 1007).

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Short-term rental income (Airbnb, VRBO and similar), based on rental history or market data, depending on the investor.

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Your investing experience affects which rent source and minimum ratio an investor accepts. First-time investors may need a 1.00 or higher.

Flexibility That Helps You Qualify

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Add a partner or family member to title or your LLC and qualify using their credit.

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No ownership seasoning required with some of our investors. Others require 6–12 months of ownership before a cash-out.

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Close in your LLC, with no tax returns, W-2s or pay stubs.

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Minimum 620 credit score. Foreign national programs do not require a U.S. credit score.

Run Your DSCR Numbers

Do you own an investment property today?

Yes shows how to turn that equity into your next properties. No goes straight to the purchase calculator.

How the Equity-to-Portfolio Strategy Works

Refinance the rental you own

A DSCR cash-out refinance replaces your current loan with a larger one, typically up to 75–80% of the appraised value depending on the investor.

Pull out the equity

The difference between the new loan and your current balance, less closing costs, comes back to you as cash.

Use it as down payments

That cash becomes the down payment, closing costs and reserves on one or more income-producing properties.

Qualify each on its rent

Each new purchase can be financed with a DSCR loan that qualifies on that property's rent and can close in your LLC.

How a DSCR Purchase Works

Pick the rental

Choose a property that rents for at least its full payment, or close to it.

Rent qualifies the loan

We use the lease, the appraiser's 1007 market rent or short-term rental data instead of tax returns.

Bring down payment and reserves

DSCR purchases can start at 15% down with some investors. TAG recommends 25% down so the property cash flows and to avoid Loan-Level Price Adjustments (LLPAs) that apply when rent does not cover the payment.

Close in your name or LLC

Close as an individual or in your LLC, then repeat on the next one.

Equity-to-Portfolio Calculator

DSCR Purchase Calculator

Enter your own numbers to see a hypothetical illustration. TAG Lending Group does not quote rates on this page: enter an interest rate assumption to see payments, cash flow and DSCR. Your loan officer will give you actual terms for your scenario.

Property you own

Current property value ($)Current financing

Current loan balance ($)Current interest rate (%)Years remaining on current loan

Monthly rent ($)Monthly taxes, insurance & HOA ($)Cash-out LTV

Next properties

Property you want to buy

Purchase price ($)Down payment (%)

As little as 15% down with some investors. TAG recommends 25% down to cash flow and avoid Loan-Level Price Adjustments (LLPAs) when rent does not cover the payment.

Monthly rent ($)Rent sourceMonthly taxes, insurance & HOA ($)

Assumptions

Interest rate assumption (%)Loan termPayment type

Seller concessions ($) – max 6% of price

Closing costs are estimated for you at 3% (low) to 5% (high).

Cash held back for reserves ($)

Estimated cash out

–After 3–5% closing costs

Additional properties

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Properties controlled

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Total monthly rent

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Est. net monthly cash flow

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DSCR per new property

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Loan amount

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Est. cash to close

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Principal & interest

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Total PITIA

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DSCR

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Est. monthly cash flow

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Before vs. after (monthly)

Enter your name, email and phone to get a PDF of these numbers you can text to yourself or save.

Hypothetical illustration for educational purposes only. Not an offer, a rate quote or a commitment to lend. Results depend entirely on the assumptions entered and do not include vacancy, repairs, management, capital expenses or changes in rent, taxes, insurance or value. Payments shown are principal and interest on the selected loan term (30 years unless changed), or interest only if selected; actual programs, terms, LTV limits, reserves, minimum DSCR and closing costs vary by investor. Minimum 620 credit score; foreign national programs do not require a U.S. credit score. Business-purpose investment property financing only. Investing in real estate involves risk, including loss of equity. Consult your own tax, legal and financial advisors. TAG Lending Group, LLC, NMLS #2329372. Equal Housing Opportunity.