Best DSCR Lenders: Our Top 15 Picks for 2025

In 2025, rental properties remain a highly lucrative investment, with rent projected to grow 1-3% annually through 2029. Various financing methods exist to help investors meet this demand, but many find the best results with debt service coverage ratio (DSCR) loans, which allow qualification with the property’s cash flow rather than the borrower’s personal income. However, one of the most important factors in the efficacy of a DSCR loan is the expertise of the lender that provides it. 

At Defy Mortgage, we specialize in DSCR loans, as well as 75+ other non-QM loan products geared towards real estate investors and other individuals with unconventional incomes, such as P&L loans, bank statement loans, and asset depletion loans. We provide investors with personalized, comprehensive mortgage solutions and dedicated support to yield maximum ROI. Along with our seamless platform and competitive rates, our in-depth support system makes managing your mortgage as simple and as effortless as possible.

In this article, we’ll be exploring the 15 best DSCR lenders of 2025 to help you find the right one to pursue your ventures with confidence. We’ll cover each lender’s areas of expertise and the specifics of their DSCR offerings. We’ll also go over the top reasons why you should use a DSCR loan for your next investment and what lenders look for in DSCR loan applicants.

Let’s get right into it.

What is a DSCR Loan?

A DSCR loan, short for a debt-service coverage ratio loan, is a type of mortgage that focuses on the property’s income-generating potential. Borrowers can qualify for a DSCR loan based on the rental income a property can produce, rather than their personal W2s, pay stubs, or tax returns. 

Using the DSCR metric, lenders can gauge the borrower’s ability to repay the loan using the property’s rental income. 

Here’s how the DSCR metric is calculated:

A DSCR figure that’s above 1.0 means that a property generates just enough income to cover its debt service. A strong DSCR is typically considered to be 1.25 or above, but some lenders have much lower or even no ratio requirements. 

Who Would Be a Good Candidate for a DSCR Loan?

DSCR loans can be a valuable tool for anyone who is looking for financing on an income-producing property. This could include, but is not limited to:

1. Real estate investors
2. Short-term rental investors/long-term rental investors
3. Self-employed investors
4. Individuals with a non-traditional income
5. Entrepreneurs
6. Business owners
7. Aspiring real estate investors looking to build their portfolio
8. Property developers

How Was This List Formed?

This list was formed by considering several factors to help determine who the best DSCR lenders are in the industry, including the experience of employees, good reviews, rate transparency, awards, overall brand message, and more. Please note that this list is in no particular order. 

The Top 15 DSCR Loan Lenders of 2025

1. Defy Mortgage

Defy Mortgage is bringing some bold, innovative energy to the mortgage game for non-traditional borrowers. Their experienced team specializes in helping real estate investors build their empire and establish their legacy with tailored loan solutions customized to meet each investor’s unique needs. They break down barriers for both buying and refinancing, making the process smoother and more secure. Let your investment property’s rental income do the talking.

That cookie-cutter, one-size-fits-all approach? Not their style. Defy is driven by a passion to challenge the status quo and create a new era of lending that puts the power in the hands of borrowers. Talk about setting new standards in the industry with a 4.8 out of 5 star rating from real estate investors.

Defy’s CEO, Todd Orlando, is an experienced banker who isn’t afraid of defying the traditional in the financial services space. Recognizing that the number of self-employed individuals is at an all-time high, Defy is dedicated to specializing in non-QM loans to help non-traditional borrowers achieve their goals – and that includes DSCR loans. And the best part? They close fast and make it easy. 

Here’s a little bit more info on Defy’s DSCR loans:

1. Up to 85% LTV (about 5% higher than the industry average) depending on meeting of certain FICO requirements
2. No Tax Returns or W2s needed
3. Minimum FICO of 620
4. NO Max Loan Amount
5. Minimum of 3 Months Reserve
6. ARM/Fixed Options
7. Options for Foreign Nationals looking to purchase an investment property in the US
8. Interest Only Option Available
9. DSCR Ratio of 0.75 (compared to 1 of many competitors)
10. Qualify using exclusively rental income
11. No application fees or obligation EVER
12. Great for STR investors (Airbnb and VRBO)
13. Options for seasoned or novice real estate investors

2. Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions helps make homeownership possible for underserved borrowers by offering various loan options. They specialize in both traditional mortgages and non-QM loans, which can be a good fit for borrowers with unique financial situations.

Angel Oak’s DSCR loan options include the following terms:

1. Minimum FICO of 680
2. Max LTV of 85%
3. Minimum loan value of $100,000
4. Maximum loan value of $3m
5. Properties can be owned by an LLC
6. Vacant properties allowed
7. Short-term rentals allowed

They also offer additional non-QM loans, including self-employed loans, asset qualifier, closed-end second mortgages, and jumbo home loans.

According to Scotsman Guide, they were one of the Top 3 Non-QM originators in 2023, with a total of $3.3 billion in total non-QM volume.

3. Truss Financial Group

Truss Financial Group was founded in 2006 by Jeff Miller and Jason Nichols, who currently serve as the CEO and CMO, respectively. They’re based in Orange County and have over 20 years of experience helping real estate investors with DSCR loans, even through the tumultuous 2008 financial crisis. They’ve been on the Inc. 5000 list as one of the fastest growing businesses in California twice – and for good reason: they’ve been serving their customers well for decades.

Their primary target market are self-employed business owners. In addition to DSCR loans, their other offerings include stated income mortgages, bank statement mortgages, jumbo reverse loans, bridge loans, and more.

Truss offers flexible financing, with a DSCR ratio of 0 available to borrowers with a high FICO score and at least 25% equity. Their application doesn’t require tax returns or any personal income information.

4. Lima One Capital

Lima One is a private lending company that provides funding for rental properties, new construction builds, fix-and-flip projects, and multifamily investments all across the United States. Headed by CEO Jeff Tennyson, they have decades of experience in the mortgage industry with a primary focus on non owner-occupied properties. They have headquarters in Greenville, South Carolina and an office in Irvine, California.

5. Griffin Funding

Griffin Funding was founded in San Diego in 2013 and they primarily serve veterans, self-employed business owners, and real estate investors. They also have a wide variety of more conventional loan options, such as conventional, FHA, and USDA loans.

Last year, in 2023, Griffin Funding achieved a three-year revenue growth of 216% and was listed as number 2,524 in the 2023 Inc. 5000. With mortgage loan origination taking such a hard hit in 2023, Griffin Funding was still able to carve out a niche in the non-QM space.

Their stated terms for DSCR loans include:

1. Minimum DSCR of 0.75, with an average of 1.05
2. Minimum credit score of 620
3. Minimum loan amount of $100,000
4. Appraisal required

They currently offer DSCR loans in all 50 states with the exception of Minnesota, North Dakota, Rhode Island, South Dakota, and Utah. If you live in any of those states, you may want to look into other options.

6. Kiavi

Kiavi is one of the nation’s largest private lenders to residential real estate investors. Headed by Arvind Mohan, the company has funded more than $16 billion in loans. Their stated goal is to help customers revitalize the $25 trillion worth of aged U.S. housing stock to provide move-in-ready homes and rental properties for millions of Americans across the country. 

Accordingly, they mainly offer fix-and-flip loans, bridge loans, and new construction loans. However, they offer DSCR loans as well at competitive rates (as low as 6.75% according to their website). Other terms include:

1. Up to 80% LTV
2. No prepayment penalty after 3 years
3. Multiple ARM options
4. Interest-only options
5. 30-year fixed rate options

Kiavi was formerly known as LendingHome, but they’ve since undergone a rebranding to focus more on utilizing technology to offer real estate investors a faster way to access capital.

7. New Silver Lending

New Silver Lending is a hard money fintech company that offers fix and flip, rent (DSCR), and ground up loans. Their interest rates range from 10-13.25%, but the interest rates on their DSCR product are a bit lower. Other terms include:

1. Minimum loan amount of $150,000
2. Maximum loan amount of $3,000,000
3. Minimum FICO of 660
4. Up to 80% of LTV
5. Origination fee of 2-3%

However, they aren’t available in a number of states in the US, including: Alabama, Arkansas, Arizona, Idaho, Minnesota, Nevada, North Dakota, Oregon, South Dakota, Utah, and Vermont.

8. Visio Lending

Visio Lending is headquartered in Austin, Texas and was founded in 2012. They specifically target real estate investors in the rental market, offering rental loans, vacation rental loans, permanent rental loans, and transitional rental loans.

Headed by Jeff Bank, who previously served as an executive at JP Morgan, they’ve originated almost $3 billion in loans over the past fifteen years and they operate in 38 states across the US. Of their $2.8 billion worth of originations, almost one-third are specifically for vacation rentals (about $821m). If you’re looking for a loan on a vacation property, Visio Lending is a option. 

However, their DSCR loans in particular offer the following terms:

1. 5/4/3/2/1 prepayment penalty structure: If the loan is paid off in full during the first year, you pay a 5% penalty; second year, a 4% penalty, and so on.
2. No personal debt-to-income or tax returns required.
3. Full 30-year terms with no balloon payments.

9. North American Savings Bank

North American Savings Bank is a popular, full-service bank located in Kansas City, Missouri. Their mortgage options include conventional, FHA, VA, and non-QM loans – including DSCR loans. North American Savings Bank’s assets total over $2 billion. NASB’s customer satisfaction rating on Zillow is 4.96 out of 5, indicating that most borrowers are very happy with their service.

North American Savings Bank offers a variety of residential and commercial invesment loans, including construction and development loans, IRA non-recourse loans, DSCR loans, investment property loans, and more.

Their DSCR loans have the following terms and benefits, which are a bit more restrictive than industry averages – but still pretty good:

1. No personal income documents required.
2. DSCR minimum of 1.0 (which is quite a bit higher than the industry average; Defy’s is currently 0.75).
3. Up to 80% max loan-to-value.
4. Minimum 700 FICO score. 
5. 1-2 Family properties are eligible.
6. Minimum loan amount of 750.

Their requirements for short-term DSCR loans are the same: they don’t offer funding for 1-4 unit residential properties according to the stated terms on their website, and their DSCR and credit score requirements are a bit higher than the norm. 

However, they’re an established lender with a dedicated history of serving their clients well.

10. A&D Mortgage

Initially founded in 2005, A&D Mortgage successfully steered their company through the ups and downs of the 2008 financial crisis. Today, they’re one of the direct-to-consumer lenders in the industry. Although their business initially started out as a retail-only lender, they expanded their business to become non-QM lenders in 2015 after seeing the explosion of the gig economy and the self-employed.

1. 1007 (single-family comparable rent schedule) only for rental income. 
2. DSCR as low as 0, which is lower than the industry average of 0.75. 
3. Up to 70% LTV.
4. Minimum FICO of 620.
5. Mixed-use and 1-8 unit properties are allowed.

With a 0 DSCR ratio allowed, A&D Mortgage is one of the most flexible DSCR lenders. They also boast some of the fastest turnaround times in the country, with a target application-to-close timeline of only five days.

11. BrightPathLoans

BrightPathLoans specializes in mortgages for real estate investors, offering hard money loans, DSCR loans, ground-up loans, fix-and-flip loans, long-term rental loans, and short-term rental loans.

They are one of the top mortgage providers for investors in Georgia, serving many of the properties in the Atlanta metro. Their hard money loans boast an 85% approval rate. Their DSCR loans have an average DSCR of above 1.25, and their turn times for capital generation are among the most competitive in the industry, with the ability to deliver in under 48 hours.

Some of their DSCR specific requirements, terms, and benefits include:

1. 1.0 – 1.2 minimum DSCR ratio.
2. 80% LTV.
3. No personal income documents required (no personal income checks, no paystubs, no tax returns).

They’ve been serving the non-QM market since 2004, and they’ve grown to be one of the nation’s largest non-QM lenders.

12. JMac Lending

Founded by Christina Pham in Santa Ana, California, JMac Lending is one of the top non-QM lenders in the United States, having originated more than 40,000 loans since their inception in 1997. They currently offer conforming, government, jumbo, and non-QM loans.

However, for consumers, they’re one of the more restrictive non-QM lenders, offering loans only in California, Colorado, Georgia, Illinois, New Jersey, Texas, Virginia, and Washington. Some of the stated non-QM terms on their website include the following:

1. Loans from $75k to $2m.
2. Minimum FICO of 660.
3. Minimum DSCR of 0.75.
4. Maximum LTV of 65%.

13. NewFi

NewFi Lending is based out of Emeryville, California. They’ve been listed as one of Inc. 5000’s Fastest Growing Companies in the United States, one of San Francisco Business Time’s Fastest Growing Companies in the Bay Area, and one of National Mortgage New’s 2023 Best Mortgage Companies to Work For.

For their DSCR loans in particular, they offer funding in 40 states. Some of their terms include:

1. Up to an 80% LTV
2. Minimum FICO of 640.
3. Minimum loan amount of $100k.
4. Maximum loan amount of $3.5m.
5. At least 12 months of established homeownership / real estate experience.
6. Residential property of 1-4 units required.

They also offer 30 and 40-year interest-only options.

14. JVM Lending

JVM Lending was founded in 2006 by Jay Voorhees and Heejin Kim. They were both top-producing loan officers before starting JVM Lending. When the financial crisis hit in 2008, JVM focused on much more stringent hiring and training practices.

Today, JVM Lending is one of the top lenders for non-QM loans, offering DSCR loans with the following terms and benefits:

1. DSCR Ratio of 0 allowed (but the property must be generating income)
2. Minimum 620 FICO
3. Must currently own a primary residence

They don’t offer DSCR loans in the following states: Colorado, Minnesota, North Dakota, Nevada, Oregon, Puerto Rico, South Dakota, Utah, Virginia, and Vermont.

15. American Heritage Lending

American Heritage Lending offers fix and flip, DSCR, refinance, and bridge loans. They primarily target real estate investors who have unique circumstances that aren’t served by conventional lenders.

They offer DSCR loans on condos, townhomes, multifamily properties of 2-4 units, and single-family homes. Their loan amounts range from $75,000 to $2m. Their website doesn’t state any minimum DSCR or credit score requirements, but they likely follow industry standards of 0.75 and 650, respectively.

What are DSCR Loan Lenders Looking for?

The most important factor that DSCR lenders look for is a positive debt service coverage ratio, ideally 1.25 or above. A DSCR of 1.25 means that the property makes 25% more than is needed to pay off its debt obligations, so higher DSCRs mean that interruptions or downturns in its income stream won’t affect its ability to make loan payments. 

While DSCR is the highest consideration, lenders still look at supporting criteria to determine your creditworthiness, such as:

• Minimum credit score: Can range between 620 and 700, with most seeking a FICO score of 680. At Defy, our minimum is 620.
  
• Debt-to-income ratio (DTI): The amount of your income going to debt payments should be 43% at most, but ideally should be lower than 35%.
  
• Loan-to-value ratio (LTV): Most DSCR mortgage lenders have a loan-to-value (LTV) ratio of 75-80%, meaning that your down payment would be 20-25%. At Defy, however, our maximum LTV goes up to 85%, meaning your down payment can be as low as 15%. That said, a higher down payment can increase your chances of getting approved and getting better mortgage rates.
  
• Loan amount: Lenders typically approve DSCR loans up to $1 million, with some offering up to $2 million or even $5 million. At Defy, however, there is no limit to the loan amount you can take out for a DSCR loan.
  
• Property type: Technically, any property that can generate rental income can qualify for a DSCR loan. However, lenders may have their own preferences in terms of which kinds of rental properties to approve. At Defy, we prioritize single-family homes, multi-family homes of up to 4 units, and short-term rentals.

Why Should You Apply for a DSCR Loan?

There are a number of reasons why DSCR loans are advantageous for investors. Here are some of the most important ones:

• Skip income and employment verification: With a DSCR loan, you don’t have to provide W-2 income or tax returns in order to prove you can repay the loan. The most important metric is the property’s DSCR, since it’s understood that the property’s income will be what pays for the mortgage. This is particularly advantageous for self-employed individuals like 1099 contract workers and freelancers, who may find it difficult to secure a mortgage due to the nature of their income.
  
• Quicker application and closing process: The most competitive markets are often the most lucrative, but also the most difficult to secure a purchase in. Since DSCR loans don’t have to process your personal income information, underwriting finishes sooner, giving you speed in a market where opportunity windows close fast.

• Take advantage of cash flow to secure better terms: DSCR loan terms get better the higher a property’s DSCR is, as opposed to something like a bank statement loan, whose terms depend on the average income your bank statements show. This can make DSCR loans preferable to other types of investment property loans if the property you’ve set your sights on has a particularly high positive cash flow. 

• Maximize portfolio growth: There’s no limit to the number of properties you can have a DSCR loan on at any given time, as long as each property has a satisfactory DSCR. This allows for multiple simultaneous acquisitions, which can significantly boost your portfolio essentially overnight.

• Secure funding even with imperfect credit: Because debt service coverage ratio (DSCR) is the primary requirement, you can get approved for DSCR loans even if you have a complicated financial history. As long as you select properties with a high cash flow potential, you can build a highly lucrative income stream with DSCR loans. 

• Get started with real estate investing more easily: Your real estate investing experience is less of a concern with DSCR loans, unlike conventional investment loans, where lenders look into how well you have operated and maintained investment properties in the past. This makes it much easier for newbie investors to get their foot in the door.

Key Takeaway

Each company on our list of the 15 best DSCR lenders brings something different to the table, and can all be solid choices if you fit the specific borrower profile they cater to. But if you want a DSCR lender that has built its brand on ensuring borrower success with DSCR loans and other non-QM products, Defy is your best bet. 

Defy Mortgage offers some of the most competitive DSCR terms with top-notch service and speed. Founded in 2022, Defy is made up of seasoned industry experts who have over 100 years of collective mortgage experience between them. Our team has managed thousands of clients with all manner of complex financial profiles, making us best-equipped to deal with unique lending situations, especially if your income comes from non-salaried sources such as self-employed or business revenue. 

If Defy sounds like the right lender to start your real estate investment journey with, you can schedule an appointment on our site, email us at team@defymortgage.com or give us a call at (615) 622-1032. If you have questions, we have answers. Reach out to us to discuss your customizable DSCR loan options. No application fees or obligations EVER when you apply.

Best DSCR Lenders FAQ

Are DSCR loans hard money?

No. Hard money loans are asset-based, meaning that the loan amount, terms, and other attributes of the mortgage primarily depend on the resale value of the home. Whereas DSCR loans base terms on the property’s capacity to generate income. Hard money loans are also short-term financing with periods of 24 months or less, while DSCR loans are long-term mortgages of 20-30 years, with fixed and ARM options.

How does a property’s DSCR affect loan interest rates?

Depending on the lender, a higher DSCR can potentially lower your interest rates, because it increases lender confidence in the property’s ability to earn enough income to pay off its debt. Conversely, a lower DSCR loan can lead to higher rates. Keep in mind that the exact calculus for how DSCR loan rates are determined involves a number of other factors besides DSCR, including loan amount, credit spread, and LTV ratio.

What property can you buy with a DSCR Loan?

DSCR loans can only be used for properties that are capable of generating rental income and are not owner-occupied. The exact range of property types can vary per lender, with some allowing DSCR loans for large-scale commercial properties such as office buildings, with others limiting theirs to residential or mixed-use properties. At Defy, we primarily offer DSCR loans for single-family homes, multi-family homes of up to 4 units, and short-term rentals.

What are the pros and cons of DSCR loans?

As non-QM loans designed to let borrowers qualify for mortgages using a property’s cash flow, DSCR loans have a unique set of pros and cons. Here’s a brief look at some of the most prominent ones:

Pros: 

• Relies on property income instead of personal income.
• Fast and flexible underwriting, no need to submit W-2 income or tax returns.
• Rates and terms get better the higher the property’s cash flow.
• Options for foreign nationals who do not have a US-based FICO score or SSN.
• Can be used to take out a cash-out refinance on an eligible property.
• No cap on the number of DSCR loans you can take out.

Cons: 

• Limited number of lenders offering DSCR loans.
• Rates start higher than conventional loans.
• DSCR ratio is sensitive to volatile market conditions.
• No standardized guidelines; some lenders may have stricter requirements for low-DSCR properties.

Do DSCR loans have prepayment penalties?

Yes, some lenders charge prepayment penalties when you pay off your loan earlier than the agreed-upon term. These penalties can either be a set percentage of the loan balance remaining by the time you made the prepayment, a decreasing percentage over time (5% in the first year, 4.8% in the second year, etc.), or a percentage of the total interest that would have been paid over a certain period.