15 Best DSCR Lenders for Real Estate Investors in 2025

In 2025, real estate investors continue to find rental properties a highly lucrative investment, with rent projected to grow 1-3% annually through 2029. Investors can take advantage of this opportunity with a variety of loan products, 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, a DSCR loan is only as good as the lender providing it, so choosing the right lender is critical.

That’s where companies like Defy Mortgage step in. 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. 

In this article, we’ll be exploring the 15 best DSCR lenders in 2025 to help you find the right one. 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. This makes DSCR loans ideal for real estate investors who own properties with strong cash flow but have limited traditional income. Instead of being locked out of conventional financing due to strict income verification, DSCR loans let you use your property’s performance to secure approval with favorable terms and continue scaling your portfolio.

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

Finding the right DSCR lender isn’t always straightforward. Each company brings different features to the table, so the “best” option depends on your goals as an investor. For example, some lenders are known for lightning-fast closings, while others stand out for higher LTV limits or flexible interest-only options. Before you choose, think about what matters most for your investment strategy, whether it’s speed, flexibility, or maximum leverage. 

With that in mind, let’s take a look at the 15 best DSCR loan lenders on the market right now to help you find one whose expertise best matches your needs. 

1. Defy Mortgage

At Defy Mortgage, we’re driven by the belief that securing investment funding should be simple, fast, and absolutely stress-free. This fuels our tailored approach to lending, adapting each aspect of the mortgage experience to fit each borrower’s unique needs and financial situation perfectly.

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.

Defy employs a team of mortgage experts with decades of experience to ensure that your mortgage process is smooth, transparent, and sets you up for long-term investment success. Our seasoned professionals bring expertise from the nation’s most demanding markets, offering white-glove service, personalized DSCR loans, and market-beating rates to real estate investors across the US. We’re licensed to provide DSCR loans to every state except Alaska, Arizona, Arkansas, Idaho, Michigan, Minnesota, Nevada, New Jersey, North Dakota, Oregon, Utah, Vermont, and Virginia.

With 75+ non-traditional loan options, Defy is best equipped to address a wide variety of lending scenarios, from self-employed professionals who want to step into the world of real estate to seasoned investors looking to quickly expand their portfolios. That means pre-approvals in less than 48-hours, and dedicated, personalized support for a worry-free loan process that’s as smooth as possible.

2. Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions specializes in both traditional mortgages and non-QM loan options, making them effective for investors of diverse 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.

3. Truss Financial Group

Truss Financial Group is a mortgage broker that primarily caters to self-employed business owners, with decades of experience helping real estate investors with DSCR loans. 

Based in Orange County, CA, Truss Financial is known for their flexible financing. Their DSCR terms include:

• DSCR ratios of as low as 0.0 allowed.
• At least good credit score.
• Good recent financial record (i.e. no bankruptcies or foreclosures).
• Property income and spending documentation.
• Up to 12 units allowed.
• Must meet minimum property criteria (to be defined by lender).
• No tax returns or any personal income information required.

In addition to DSCR loans, their other offerings include stated income mortgages, bank statement mortgages, jumbo reverse loans, bridge loans, and more.

4. Lima One Capital

Lima One is a South Carolina-based private lending company that mainly focuses on non-owner-occupied properties, including new construction builds, fix-and-flip projects, and multifamily investments all across the United States. 

Their DSCR loan terms include:

• Minimum DSCR of 1.20
• Credit score of 670 (630 if the borrower is part of a large entity)
• Max LTV of 80%

Aside from DSCR, their primary loan offerings include fix & flip loans, new construction loans, several rental loans, and their fast-closing Bridge Plus program that offers financing up to $5M.

5. Griffin Funding

Griffin Funding was founded in San Diego in 2013 and they primarily serve self-employed business owners and real estate investors, with special attention reserved for veterans. 

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

In addition to DSCR, they also have a wide variety of more conventional loan options, such as conventional, FHA, and USDA loans.

They currently offer DSCR loans in all 50 states with the exception of Minnesota, North Dakota, Rhode Island, South Dakota, and Utah. 

6. Kiavi

One of the nation’s largest residential real estate investment lenders, Kiavi’s main vision is to revitalize the $25 trillion worth of aged U.S. housing stock to provide move-in-ready homes and rental properties. 

To that end, they mainly offer fix-and-flip loans, bridge loans, and new construction loans. However, they also offer DSCR loans at competitive rates:

1. Interest rates as low as 6.75%
2. Up to 80% LTV
3. No prepayment penalty after 3 years
4. Multiple ARM options
5. Interest-only options
6. 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

Founded by a former JP Morgan executive, Visio Lending specifically targets real estate investors in the rental market, offering rental loans, vacation rental loans, permanent rental loans, and transitional rental loans.

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.

Headquartered in Austin, Texas, Visio Lending operates in all but 9 US states: Oregon, Nevada, Utah, North Dakota, South Dakota, Nebraska, Vermont, Minnesota, and Alaska. 

9. North American Savings Bank

North American Savings Bank is a popular full-service bank located in Kansas City, Missouri. 

Their DSCR loans have the following terms:

1. No personal income documents required.
2. DSCR minimum of 1.0 (higher for short-term rentals).
3. Up to 80% max loan-to-value.
4. Minimum 680 FICO score (higher for short-term rentals). 
5. 1-2 family properties are eligible.
6. Minimum loan amount of $175,000.

Besides DSCR loans, 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.

North American Savings Bank is an established lender with a good track record. Their resources allow them to offer benefits such as up to 80% LTV, but this also comes with the tradeoff of more restrictive requirements.

10. A&D Mortgage

A&D Mortgage is a direct-to-consumer lender that offers no-ratio (0 DSCR) loans with fast turnaround times.

Here are their DSCR loan requirements:

1. DSCR as low as 0, but better terms unlock at DSCRs higher than 1.25.
2. Only Form 1007 (single-family comparable rent schedule) required to prove rental income. 
3. Up to 80% CLTV, cash-out up to 75% LTV.
4. Minimum FICO of 620.
5. Mixed-use and 1-8 unit properties are allowed.

Aside from their DSCR offerings, A&D also offers other non-QM loans such as 12/24-month bank statements and ITIN loans, alongside conventional and government loans.

Their primary advantage for DSCR investors is their target application-to-close timeline of only five days. This commitment to fast transactions makes them a great option for chasing rapidly closing opportunity windows.

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.

Some of their DSCR requirements include:

1. 1.25 minimum DSCR ratio.
2. Interest rates as low as 5.99%.
3. Loan amounts up to $20M.
4. Up to 85% LTV.
5. No personal income documents required (no personal income checks, no paystubs, no tax returns).

Bright Path claims to be able to deliver financing in as little as 7 days. While some lenders are faster, this speed can still allow borrowers to secure financing well ahead of their competition.

12. JMac Lending

Based in Santa Ana, California, JMac Lending offers a variety of DSCR loan programs for different investment situations.

Some of the stated DSCR terms on their website include:

1. DSCR loans are split into two: DSCR Prime, which is for residential only, and Venice DSCR/ DSCR Investment, which includes single-family rentals, 2-4 unit residential, condos, and short-term rentals.
2. Loans from $75K to $3.5M.
3. Minimum FICO of 660, 700 if DSCR is lower than 1.0.
4. Minimum DSCR of 0.75 for DSCR Prime, as low as 0 DSCR for DSCR Investment.
5. Up to 75% LTV for first-time investors.
6. Past 30 days of assets documentation for closing funds and reserves.

Aside from DSCR loans, JMac currently offers conforming, government, jumbo, and non-QM loans.

JMac Lending is unfortunately only available in California, Colorado, Georgia, Illinois, New Jersey, Texas, Virginia, and Washington. They also only allow cash-out in Texas, but it can be used to meet reserve requirements. 

13. NewFi

Based out of Emeryville, California, NewFi Lending offers unique mortgage solutions such as shared appreciation mortgages and low-initial payments for non-QM borrowers. 

Some of their terms for DSCR loans 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.

NewFi places emphasis on using advanced tech to provide competitive service, such as Tavant’s Touchless Lending technology for automated document processing. This achieves an estimated 70% reduction in processing time and supports 358 unique document types. However, their DSCR loans are not available in the State of New York.

14. JVM Lending

Founded by two veteran loan officers, JVM Lending uniquely employs none; instead, they employ a “super team” of mortgage analysis, contract specialists, and closing experts, each focusing on their specialized role instead of the multitasking that loan officers have to do.

Their DSCR loans have the following terms and benefits:

1. DSCR Ratio of at least 1.0, but ratios as low as 0.5 can still qualify in certain situations.
2. Minimum 620 FICO.
3. Up to 80% LTV.
4. Comprehensive operating expenses documentation covering maintenance, property management, and other recurring expenses.

The main downside is that JVM Lending only operates in 11 states: California, Texas, Arizona, Massachusetts, Florida, Tennessee, Idaho, Illinois, Louisiana, Oregon, and Georgia.

15. American Heritage Lending

American Heritage Lending focuses on serving real estate investors who have unique circumstances that aren’t served by conventional lenders.

This is why their offerings are mainly investor-centric non-QM loan programs, such as fix and flip, DSCR, refinance, new construction, and bridge loans. 

Here are their DSCR loan terms and requirements:

• Available for condos, townhomes, multifamily properties of 2-10 units, and single-family homes.
• Loan amounts from $75,000 to $2M. 
• Up to 85% LTV.
• 0.75 DSCR minimum.
• Rate/term and cash-out refinance available.

One unique advantage of American Heritage Lending is LTV stacking, which allows investors to stack broker fees and points on top of their LTV.

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.

And if you’re a mortgage broker looking for a partner that puts you in the driver’s seat, Defy TPO is the clear choice. Defy TPO gives brokers a competitive edge with flexible DSCR products, streamlined processes, and pricing tools that close deals faster and win client loyalty. With programs designed for self-employed borrowers and real estate investors, you’ll be able to provide solutions that your competitors can’t match. Try our AI Pricer for an instant quote, or send your specific pricing scenarios our way for a more accurate estimate..

Best DSCR Lenders FAQ

What is a DSCR loan?

DSCR loans are investment financing tools that let you qualify using the income potential of a property rather than your own income. Unlike conventional loans, DSCR loan terms like amount and rates are based primarily on the debt service coverage ratio. This allows borrowers with unconventional incomes and less-than-perfect credit scores to be more likely to get approved with competitive rates and terms.

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.

What Are Common Challenges With DSCR Loan Lenders?

DSCR loan providers can often be strict with eligibility. Since DSCR loans are non-QM, they’re riskier for lenders, so they can set high standards for applicants like above 1.25 DSCR, max 70% LTV, and restrict their offering to specific property types. 

Another challenge is availability. Being non-QM loans, not all lenders offer DSCR loan programs. Those that do may have significantly different fees, interest rates, and processing times, making it difficult to reach an objective verdict as to which one is best for you. 

How To Choose the Best DSCR Lenders?

The most important criteria include the lender’s experience and history of successful partnerships. A solid track record of successful investments proves that the lender has a sound mind for business and suggests that they’re an involved partner. Beyond that, pay attention to fee structures, customization options, and loan terms to find out if the lender’s offering aligns with your needs and preferences.

Can I qualify for a DSCR loan with multiple properties?

Absolutely. There’s no limit on the number of properties you can purchase with DSCR loans. You can build entire portfolios on DSCR loans alone, as long as you can prove that these properties’ incomes can support the loan. You can even refinance a property once it gains enough equity and use the proceeds to fund another property, fueling almost exponential growth.

What are the best non‑QM lending options for real estate investors?

DSCR loans are often the best non-QM lending option for real estate investing, since they let the property’s income prove your creditworthiness. However, in some situations, options like fix-and-flip loans, construction loans, and interest-only mortgages may be more appropriate. Feel free to reach out to us so we can point you in the right direction!