Debt Service Coverage Ratio (DSCR) Loans
Invest smarter, not harder
Ready to grow your rental portfolio without jumping through hoops? With Figure’s DSCR loan, you can skip the endless paperwork and get approved based on your property’s income, not your personal finances. Whether you’re refinancing or buying, we make it simple, fast, and stress-free.
Your rental income just got more powerful
- Fast funding
Get up to $400K funded in as few as 5 days (even complex deals close in under 9).2navigates to numbered disclaimer
- No W-2s, no tax returns
Qualify based on your rental income alone, no traditional income verification needed.
- Smarter tech, faster approvals
Our AI-powered system instantly scans LLC docs, leases, and property details, cutting through red tape.
Figure vs. traditional investment property loans
When it comes to financing rental properties, not all loans are created equal. Here’s how Figure’s DSCR Loan stacks up against traditional options like investment property loans, rental property loans, and rental investment loans:
| Feature | Figure DSCR Loan | Traditional Investment Property Loan |
|---|---|---|
| Approval process | Based on rental income (no W-2s, no tax returns) | Based on personal income and DTI |
| Speed | Funding in as few as 5 days2navigates to numbered disclaimer | Can take weeks or months |
| Paperwork | Minimal — no tax returns, no personal income verification | Extensive documentation required |
| Loan amounts | Up to $1M (no appraisal under $400K)5navigates to numbered disclaimer | Often requires appraisals regardless of loan size |
| Title requirements | No or instant title required | Standard title requirements with potential delays |
| Investor-friendly | Designed for real estate investors, LLCs, and corporations | Often more restrictive for investors |
How to get a DSCR loan with Figure
- 1
Complete our 100% online application
Based on rental income (No W-2s, no tax returns) and prequalification won’t affect your credit score.
- 2
Get approved in minutes, funding in 5 days
Get up to $400K funded in as few as 5 days (even complex deals close in under 9).2navigates to numbered disclaimer
- 3
Grow your rental portfolio
With Figure, you’re getting fast, hassle-free funding tailored for real estate investors. No waiting, no unnecessary paperwork.
Why Figure’s DSCR Loan is a game changer
No personal income required
Your property’s cash flow does the talking.
Buy or refi with ease
Whether you’re purchasing or refinancing, we’ve got you covered.
Loan amounts up to $1M5navigates to numbered disclaimer
And if you’re borrowing under $400K, no appraisal required!1navigates to numbered disclaimer
Speedy closings
No or instant title checks mean fewer delays.
Straightforward terms
FICO 680+, DSCR > 1.0, CLTV up to 80% (75% for cash-out loans).
Everything you need to know
about DSCR loans
What is a debt service coverage ratio (DSCR)?
Your DSCR = Net Operating Income (NOI) / Total Debt Service. A DSCR above 1.0 means your rental income covers your loan payments—making you a solid candidate for financing.
What is a DSCR Loan?
A DSCR loan is designed for real estate investors, letting you qualify based on your rental income, not personal income. If your property cash flows, you’re in business!
Use cases of DSCR loans
DSCR loans are great for purchasing rental properties, refinancing investments, cash-out refinancing, and expanding real estate portfolios.
Who should consider a DSCR loan?
- Real estate investors looking to expand their rental portfolio.
- Self-employed individuals who want easy qualification.
- LLCs and corporations needing investment property financing.
How does a DSCR loan work?
Instead of looking at your personal income, lenders check your rental income. If your DSCR meets requirements, you qualify—no W-2s needed.
What property types can you use a DSCR loan for?
- Single-family rentals (SFRs)
- 2-4 unit investment properties
- Properties owned by LLCs
DSCR Loan FAQs
- FICO Score: 680+
- DSCR: >1.0
- Max CLTV: 80% (75% for cash-out refi)
- Property Types: SFRs, 2-4 unit rentals
Formula: DSCR = Net Operating Income / Total Debt Service. A DSCR above 1.0 means your rental income covers your mortgage.
Most lenders prefer a DSCR of 1.25+, but some accept as low as 1.0.
Increase rental income, reduce operating expenses, or refinance existing debt to improve your DSCR. Lowering vacancies and paying down debt can also help.
Nope! DSCR loans are long-term mortgage loans, not high-interest hard money loans.
680+ is the minimum required.
Typically 20%, though a higher DSCR can help lower that requirement.
No. DSCR loans are strictly for investment properties, not primary residences.