STR Lender Watch Get lender alerts

What is a DSCR loan? A guide for Airbnb and short-term rental investors

A DSCR loan is a mortgage for an investment property that qualifies on the property's rent, not your personal income. Here is how the ratio works, how short-term rental income is counted, and what the 25 direct lenders we track actually publish.

Direct lenders tracked
25
Accept projected STR income
17
Publish a min DSCR
13
Data checked
Oct 22, 2026

Range Oct 19, 2026 to Oct 22, 2026

DSCR loan meaning

DSCR stands for debt service coverage ratio. It compares the rent a property brings in with the monthly payment on the loan. A DSCR loan uses that ratio, plus your credit score, down payment and reserves, to decide whether the property qualifies. The lender doesn't ask for your pay stubs or tax returns, and doesn't use your personal debt-to-income ratio.

The DSCR formula

DSCR = qualifying monthly rent ÷ monthly PITIA. PITIA is principal, interest, property taxes, insurance and association (HOA) dues. On an interest-only loan the payment has no principal, so lenders use ITIA (interest, taxes, insurance and HOA) instead. A DSCR of 1.00 means the rent exactly covers the payment; above 1.00 leaves a cushion; below 1.00 means the rent falls short. Try your own numbers in the DSCR calculator.

Example Made-up numbers

Round numbers to show the math. Not a quote, not a typical deal and not any lender's terms.

  • Principal and interest$2,000
  • + property taxes$300
  • + insurance$150
  • + HOA dues$50
  • = Monthly PITIA$2,500
  • Qualifying monthly rent$3,000
  • DSCR = $3,000 ÷ $2,5001.20

What the example shows

  • The rent covers the payment 1.20 times, so this example property has a 20% cushion.
  • The ratio says nothing on its own about credit, down payment, reserves or the property itself. Lenders check those too.
  • For a short-term rental, “qualifying rent” is usually less than gross bookings, because many lenders count only part of it.
Run your own numbers →

What lenders actually publish

Computed from the 25 direct lenders we track (referral sources are not counted). A lender that doesn't publish a figure is left out of the math and counted as “not published”. Data checked Oct 19, 2026 to Oct 22, 2026.

Published DSCR loan terms: how many lenders publish each, lowest, median and highest, with the lenders at each end
TermPublish itLowestMedianHighest
Minimum credit score 22 of 25 620A&D Mortgage, Griffin Funding, Lendmire, theLender 660 720Defy Mortgage
Minimum DSCR 13 of 25 0.75LendingOne, LendSure Mortgage, NQM Funding, Quickline Capital 1.00 1.30Lima One Capital
Max LTV, purchase 23 of 25 70%CoreVest Finance 80% 85%Angel Oak Mortgage Solutions, Griffin Funding, LendSure Mortgage, theLender
Max LTV, cash-out refi 17 of 25 70%Acra Lending, Certain Lending, Lendmire, Lima One Capital, Logan Finance 75% 75%1st Nationwide Mortgage, America Mortgages, Defy Mortgage, Dominion Financial, Easy Street Capital, Griffin Funding, LendingOne, LendSure Mortgage, Newfi Wholesale, Quickline Capital, theLender, Uncapco Financial
Minimum loan 20 of 25 $75KA&D Mortgage, Defy Mortgage, Lima One Capital, NQM Funding, Visio Lending $100K $500KCoreVest Finance
Maximum loan 21 of 25 $1.5M1st Nationwide Mortgage, Certain Lending, Logan Finance $3M $30MTruss Financial Group
How lenders count short-term rental income, and below-1.0 DSCR options
PolicyLenders
Accept projected STR incomeProjection, or either projection or history17 of 25
12-month booking history only3 of 25
STR income method not published5 of 25
Publish a below-1.0 DSCR or no-ratio option15 of 25

Medians of an even number of figures are the average of the middle two. Published minimums and maximums are best cases that usually need strong credit and experience. Every figure with its source is on DSCR loan requirements.

How short-term rental income is counted

For an Airbnb or vacation rental, the “rent” in the ratio is the lender's qualifying STR income. Lenders take it from booking history (usually about 12 months), from a projection such as AirDNA or an appraiser's short-term rental analysis, or from long-term market rent. Many count only part of gross revenue, a cut called a haircut.

Is a DSCR loan non-QM?

Generally, yes. DSCR loans are made for business purposes on investment property, so they are non-QM (non-qualified mortgage) loans and are not underwritten on the borrower's personal income. That is why each lender writes its own rules, and why terms vary so much from one lender to the next.

DSCR loan vs. conventional investment loan

The main difference is how income is documented. A conventional investment-property loan qualifies you: the lender looks at your pay stubs, W-2s or tax returns and your debt-to-income ratio. A DSCR loan qualifies the property: the lender looks at the property's rent against its payment. That can suit self-employed investors, investors with many properties, or anyone whose tax returns show low income after write-offs. Rules for the two loan types differ by lender, so compare both before you choose.

Costs to expect

Beyond the rate, budget for lender fees and third-party closing costs, cash reserves you must still have after closing, and a possible prepayment penalty if you sell or refinance early.

Next steps

Match your deal to lenders DSCR calculator DSCR loan requirements All lenders

Frequently asked questions

What is a DSCR loan?

A DSCR (debt service coverage ratio) loan is a mortgage for an investment property that qualifies mainly on the rent the property brings in, compared with its monthly payment. The lender looks at the property, not your pay stubs, tax returns or debt-to-income ratio.

How does a DSCR loan work?

The lender divides the qualifying monthly rent by the monthly payment (principal, interest, taxes, insurance and HOA dues, or PITIA). If that ratio meets its minimum, and your credit, down payment and reserves fit its rules, the property can qualify. Each lender sets its own minimums.

Is a DSCR loan non-QM?

Generally, yes. DSCR loans are made for business purposes on investment property, so they are not Qualified Mortgages and are not underwritten on the borrower's personal income. Each lender writes its own rules, which is why terms vary so much between lenders.

What DSCR do lenders require?

13 of the 25 direct lenders we track publish a minimum DSCR, from 0.75 to 1.30 (median 1.00). 15 publish a below-1.0 or no-ratio option. The other 12 don't publish a minimum.

Can I use Airbnb income for a DSCR loan?

Often, yes. 17 of 25 direct lenders we track publish that they can count projected short-term rental income, 3 count it only from about 12 months of booking history, and 5 don't publish how they count it. Many count only part of gross STR revenue (a haircut).

Learn the terms

Lender lists

Free · Lender change alerts
  • When a lender we track changes a published term (credit score, LTV, DSCR, STR income rules, states), we email you
  • Old value, new value and a link to the lender's own page
  • No set schedule: we email when there's a change to report. Every change is also on the change log

Free download: the STR DSCR lender cheat sheet (PDF), every direct lender on one printable page. Web version

No spam, unsubscribe anytime. Form not loading? Subscribe here.

Closed an STR DSCR loan?

Share the rate you got so other hosts can see what loans really cost. Anonymous, no personal info, reviewed before it appears.

Share your rate

Not a lender or broker. No referral fees. For education only. Figures come from each lender's public pages on the date shown and can change without notice, so verify them with the lender. Rates are estimates, not quotes. How we source data.