Who it is for
- Investors who cannot document rental income (vacant or in-transition properties)
- Borrowers who want maximum privacy in the loan file
- Experienced investors with strong balance sheets
- Short-term holds where documentation speed matters more than rate
Typical No-Ratio DSCR Loans requirements
| Income docs | None, no personal or rental income verified |
|---|---|
| DSCR calc | Not performed |
| Down payment | Typically 25-35%+ |
| Credit | Higher minimums than standard DSCR (often 680-720+) |
| Reserves | Heavy: often 12 months or more |
| Pricing | Above standard DSCR rates |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
How it works
- Qualify on the "four pillars": credit score, down payment, reserves, and property value.
- No rent schedule, no leases, no income calculation, the file is underwritten on collateral and borrower strength.
- Expect a full appraisal; the property must stand on its own as security.
- Close with pricing that reflects the no-documentation risk premium.
Pros and cons
Advantages
- No income documentation of any kind
- Works for vacant, in-transition, or hard-to-document properties
- Fast, simple underwriting focused on collateral
Trade-offs
- Highest pricing in the DSCR family
- Large down payments and reserve requirements
- Strict credit minimums shut out many borrowers
- Very small lender pool
Documents you’ll need
- Government ID
- Bank/brokerage statements (reserves and down payment)
- Entity documents (if borrowing in an LLC)
- Property insurance quote
No-Ratio DSCR Loans FAQ
How is no-ratio different from regular DSCR?
Standard DSCR verifies the property’s rental income and requires a minimum coverage ratio (usually 1.0+). No-ratio skips the income question entirely, and charges more for it.
Can I really get a loan with no income stated?
Yes, from specialty non-QM lenders, but "no income docs" does not mean "no standards." Credit, down payment, reserves, and collateral requirements are strict precisely because income is unverified.
Is no-ratio DSCR the same as a no-doc loan?
It is the modern descendant of pre-2008 no-doc lending, rebuilt with guardrails: real down payments, real reserves, verified assets, and qualified-mortgage-adjacent consumer protections where applicable.
What down payment does no-ratio require?
Typically 25-35%, sometimes more. The lender offsets the documentation risk with your equity.
What credit score do I need?
Usually 680-720 minimum, higher than standard DSCR. Strong credit is one of the four pillars of qualification.
How much are reserves?
Often 12 months of payments in reserve, sometimes more. This is the tradeoff for skipping income docs.
How much higher are no-ratio rates?
Typically 0.5-1.5% above standard DSCR rates, which are already above conventional. Price it against the deal’s cash flow.
Can I use no-ratio on a short-term rental?
Some lenders allow it, with STR-specific rules. Ask upfront, not all no-ratio programs cover vacation rentals.
Is there a prepayment penalty?
Often yes, non-QM investor loans commonly carry 1-3 year prepayment penalties. Factor it into your exit plan.
How No-Ratio DSCR Loans compare
| No-Ratio DSCR Loans | DSCR Loans | Bank Statement Loans | Hard Money Loans | |
|---|---|---|---|---|
| Best for | Investors who cannot document rental income (vacant or in-transition properties) | Investors whose tax returns show low income after write-offs | Business owners and self-employed borrowers with heavy write-offs | Auction, foreclosure and off-market deals that need to close in days |
| Down payment | Typically 25-35%+ | 20–25% down; up to 80% LTV on purchase | , | , |
| Credit | Higher minimums than standard DSCR (often 680-720+) | Typically 620–680 (some programs 600) | Typically 620–660 | Flexible; the property drives approval |
| Income docs | None, no personal or rental income verified | , | , | , |
Typical ranges, your Loan Estimate or term sheet confirms actual terms.
Coming soon: a 2-minute walkthrough from our loan team.
Related programs
DSCR Loans
A DSCR loan is an investment-property mortgage that qualifies you on the property’s rental income divided by its monthly payment (the debt service coverage ratio).
Bank Statement Loans
A bank statement loan is a non-QM mortgage that calculates self-employed income from 12 or 24 months of personal or business bank deposits instead of tax returns.
Hard Money Loans
A hard money loan is a short-term investment-property loan from a private lender that approves mainly on the property’s value and the deal, not your income or credit history.
Investment Property Loans
An investment property loan finances a 1-4 unit rental you do not live in.