2026 DSCR Lending Index
We reviewed publicly posted DSCR program guidelines from wholesale and non-QM lenders to map the real shape of the market: where credit floors sit, what down payments are actually required, which DSCR ratios price best, and how prepayment penalties work. This is a synthesis of published guidelines, not a rate survey.
Methodology
- Sources: publicly posted wholesale rate sheets, program guideline matrices, and lender-published matrices, collected October 2026.
- Scope: 30-year fixed DSCR programs for 1–4 unit residential investment properties; short-term rental and portfolio variants noted separately where they differ.
- What we recorded per program: minimum credit score, maximum LTV (purchase), minimum DSCR ratio for standard pricing, reserve requirements, and prepayment penalty structure.
- What this is not: a rate survey. Rates move daily and are quoted per scenario; this index covers structure and requirements, which move slowly.
- Limitations: guidelines change; individual lenders layer overlays. Figures are typical observed ranges, not offers.
Findings
| Credit score floors | 620–680 across the market. The 620–640 band is the entry tier (fewer lenders, tighter ratios); 680+ unlocks the broadest lender panel and best pricing. |
|---|---|
| Down payments | 20–25% is the standard purchase requirement. 15% appears at high scores and strong ratios with select lenders; below 20% is the exception, not the rule. |
| DSCR ratios | 1.00x is the standard qualification floor; 1.25x+ earns the best pricing tiers. Some lenders price below 1.00x with larger down payments. |
| Reserves | 6 months of PITIA is the common requirement; 12 months appears on larger loans and lower-score files. |
| Prepayment penalties | 3–5 year declining structures are the norm (e.g. 5/4/3/2/1); no-prepay options exist at a pricing premium. |
| Cash-out refinances | Typically capped at 70–75% LTV with stricter ratio requirements than purchases. |
| Short-term rentals | Most STR DSCR programs start at 620–640 and underwrite on Airbnb-style income or market projections. |
FAQ
Is this index based on your own loans?
No, it is a synthesis of publicly posted wholesale guidelines, compiled October 2026. Our own DSCR offerings sit within these ranges.
How often is the index updated?
We review it quarterly and after major guideline shifts. The "last reviewed" date on this page is the version date.
Can I cite this index?
Yes, with attribution and a link. That is what it is for.
Educational research only, not investment advice, not a loan offer. Cite with attribution and a link to this page.
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