Debt Service Coverage Ratio (DSCR) loans let real estate investors qualify based on a property’s rental income instead of personal tax returns or W-2s. Below is how DSCR pricing works, what ranges to expect, and what it takes to qualify.
DSCR pricing moves with the broader rate market and shifts with each deal’s specific profile, so we don’t publish a static rate table — a number posted today can be stale within days. Get your current rate for an exact, deal-specific quote.
How this compares: DSCR rates typically run 0.5 to 1.5 percentage points above a conventional 30-year fixed mortgage, depending on your DSCR tier, LTV, and credit profile. That premium buys you approval based on the property’s cash flow, with no personal income documentation, tax returns, or employment verification required.
DSCR pricing isn’t a single number — it moves with four main factors:
A property generating 1.25x its debt service will price better than one at 1.0x. Cressida’s floor is 1.0x — if the rent covers the mortgage payment, you may qualify.
Cressida’s DSCR programs cap at 75% LTV across the board. Lower leverage generally supports better pricing.
Stronger credit scores and larger reserves reduce risk and improve your rate.
Fixed vs. adjustable, and whether you accept a prepayment penalty, both move the number.
DSCR loans price at a spread above the broader bond market — movements in the 10-year Treasury yield show up in DSCR quotes within days. If you’re comparing quotes across lenders, make sure you’re comparing the same DSCR tier, LTV, and prepay structure — a 50-basis-point difference often just reflects a different deal profile, not a better lender.
Not sure which applies to your property? Talk to a loan advisor →
Unlike a conventional mortgage, a DSCR loan doesn’t ask for tax returns, pay stubs or W-2s, or personal debt-to-income calculations. Instead, lenders evaluate:
This makes DSCR financing a strong fit for self-employed investors, portfolio landlords, and borrowers whose tax returns understate their actual cash flow.
A DSCR of 1.25 or higher means the property generates 25% more income than its debt payment requires — generally the strongest pricing tier. Most lenders, including Cressida, will still qualify deals down to a 1.0x floor, meaning the rent exactly covers the mortgage payment.
Cressida’s DSCR floor is 1.0x. Below that, the property’s income doesn’t fully cover its debt service, and additional structure — lower leverage, larger reserves, or a different loan program — is typically required.
DSCR rates typically run 0.5 to 1.5 percentage points above a comparable conventional loan. The trade-off is qualification speed and flexibility: no personal income documentation is required.
75% across Cressida’s DSCR programs, both General Commercial and Investor Residential.
Yes. Many lenders, including Cressida, will consider projected short-term rental income as part of the DSCR calculation — talk to an advisor about how your property’s rental history or market comps factor into qualification.
Because there’s no personal income verification, DSCR loans generally close faster than conventional financing — timelines depend on appraisal and title, not tax transcript processing.
Not exactly. DSCR loans are a category of investment-property financing that use property cash flow to qualify. They can apply to both 1–4 unit residential investment properties and small commercial assets, depending on the program.
DSCR pricing depends on your specific deal, credit profile, and property — the only way to get an accurate number is a scenario-based quote. Tell us about the property and a Cressida Loan Officer will follow up with a deal-specific rate.