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. If you’re refinancing, 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).2: Navigates 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 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 days2: Navigates 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)5: Navigates 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 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 as few as 5 days
Get up to $400K funded in as few as 5 days (even complex deals close in under 9).2: Navigates 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.
Refi with ease
Whether you need cash to renovate your rental, or to manage cash for your business, we’ve got you covered!
Loan amounts up to $1M5: Navigates to numbered disclaimer
And if you’re borrowing under $400K, no appraisal required!1: Navigates 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, allowing you to qualify based on your property’s rental income rather than your personal income. It’s a practical option for investors who prefer not to provide traditional income documentation.
Use cases of DSCR loans
DSCR loans are great for 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.
- 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 residences (SFRs), condos, PUDs, and townhomes
What loan amounts does Figure offer?
Figure offers loan amounts from $75,000 - $1,000,0005: Navigates to numbered disclaimer. If a drive-by valuation is not available in the state for loan amounts under $400,000, a full appraisal will be required.
How much can I borrow?
Max 80% LTV for rate-and-term refinances and up to 75% for cash-out refinances.
DSCR Loan FAQs
- FICO Score: 680 or higher
- DSCR: Greater than or equal to 1.0
- Maximum LTV (Loan-to-Value): Up to 80% for rate-and-term refinances and up to 75% for cash-out refinances
- Property Types: Single-family residences, condos, PUDs, and townhomes
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 or higher, as it indicates stronger cash flow. However, some lenders—including Figure—may accept DSCRs as low as 1.0 depending on other factors like credit score and property type.
You can improve your DSCR by increasing rental income, reducing operating expenses, or refinancing to lower your existing debt payments. Minimizing vacancies can also help.
No. DSCR loans are long-term mortgage products designed for real estate investors. Unlike hard money loans, they typically offer lower interest rates, longer terms, and more stable financing.
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.