The complete qualification matrix for DSCR financing on dscr rate & term refinance properties — including FICO tiers, LTV limits, down payment requirements, and documentation standards. No income documentation required.
These figures reflect the aggregated program parameters across our 13+ lender network for dscr rate & term refinance DSCR financing. Individual lenders may vary on secondary criteria, but these represent the available range.
This is the single most important aspect of dscr rate & term refinance DSCR underwriting to understand — and the area where most loan officers outside this niche get it wrong.
Market rent from Form 1007 is the qualifying income basis. Form 1007 — the Single-Family Comparable Rent Schedule — is completed by the same licensed appraiser who appraises the property. The appraiser identifies 2–3 comparable rentals in the surrounding market and derives an estimated market rent for the subject property. This figure — not actual collected rent, not niche-specific income — is what DSCR underwriting uses.
Why market rent instead of actual income? Because market rent provides an objective, appraiser-verified figure that is independent of occupancy fluctuations, management arrangements, and the specific use of the property. It makes dscr rate & term refinance properties underwritable on the same standard as any residential rental.
Asset depletion as a supplement. If market rent on Form 1007 doesn't fully support debt service, asset depletion is a structuring option. Under asset depletion methodology, a portion of your verified liquid assets (bank accounts, investment accounts) is converted into an imputed monthly income figure that supplements the DSCR analysis. This is not available on all programs but is a meaningful alternative for investors with substantial liquidity.
What is not qualifying income: W-2 wages, self-employment income, tax return profits, niche-specific income streams, platform income, or any other personal income source. These are not part of the DSCR underwriting equation.
Several common investor profiles that struggle with conventional lending qualify comfortably for DSCR dscr rate & term refinance financing:
The maximum LTV on a DSCR rate & term refinance is 85%, available at 720+ FICO. Lower FICO tiers have adjusted LTV limits. Cash-out refinances have a separate maximum LTV of 80%.
No. DSCR rate & term refinance programs qualify based on market rent as estimated by Form 1007. Tax returns, W-2s, and personal income documentation are not required. Entity ownership (LLC) is fully supported.
There is no stated minimum DSCR requirement across all programs. Sub-1.0 DSCR programs are available, and no-ratio programs exist for properties where standard DSCR analysis doesn't apply. Program availability depends on credit profile and property specifics.
Yes. LLC and corporate entity ownership is fully supported in DSCR refinance programs. This is one of the primary advantages over conventional refinance products.
Programs are available in 47 states. New York is excluded from this network.
Quick Answers
DSCR = market rent (Form 1007) ÷ monthly debt service. The appraisal determines the property's market rent — no W-2, no tax returns, no personal income documentation. If market rent supports the new payment, you qualify. No-ratio programs available when rent doesn't fully cover the mortgage.
Minimum 600 FICO. Up to 85% LTV at 720+ FICO. No cash-out. No personal income documentation. LLC ownership allowed. No-ratio programs available. 47 states. Typical close timeline 30-45 days. Max loan $3.5M.
Any investor with a rental property where the market rent supports the new mortgage payment. Self-employed investors, investors with multiple properties, W-2 employees, and LLC owners all qualify. No limit on number of properties financed. DSCR evaluates the property, not the borrower's personal income.