A DSCR loan (Debt Service Coverage Ratio loan) is a long-term real estate investment loan that qualifies on the property's rental income rather than the borrower's W-2 income or tax returns. The qualifying ratio is monthly rent divided by monthly debt service (PITIA). Most DSCR lenders, including AGS Lending Partners, want a DSCR of at least 1.0 — meaning rent covers the full monthly payment.

How does a DSCR loan qualify?

Three primary inputs: (1) the appraisal's market rent (1007 or 1025), (2) PITIA — principal, interest, taxes, insurance, association dues, and (3) the borrower's FICO and reserves. There is no employment verification, no tax returns, and no DTI calculation. AGS Lending Partners requires DSCR ≥ 1.0 at 660 FICO; lower DSCRs are possible at higher rate spreads or lower LTV.

What rate do DSCR loans price at?

DSCR loans price off the 5-year US Treasury plus a spread. The spread varies by LTV, FICO, prepay structure, and DSCR. As of May 2026, AGS Lending Partners' 30-Year DSCR loans price between 6.99% and 8.49% depending on the file. Rate is locked at application — not at closing — so the file pencils to a known number.

Can I get a DSCR loan in an LLC?

Yes — and AGS Lending Partners requires it. The loan closes into the borrowing entity (LLC, corporation, or trust), not into the individual's personal name. This is the structural reason DSCR loans don't hit personal credit reports the way conventional financing does.

What's the maximum LTV on a DSCR loan?

80% LTV on purchases and rate-term refinances, 75% LTV on cash-out, with FICO ≥ 700. At 660 FICO the LTV cap drops to 75% (purchase) and 70% (cash-out). Lower LTV brackets price at lower rate spreads — the 65% LTV tier typically prices 25–50 bps tighter.

DSCR Loan Lender for Investors: Rates, Qualification, How It Works

Direct answer

A DSCR loan (Debt Service Coverage Ratio loan) is a 30-year fixed real estate investment loan that qualifies on the property's rental income — not the borrower's W-2, tax returns, or DTI. The qualifying ratio is monthly rent ÷ monthly PITIA. Most DSCR lenders want at least 1.0 (rent covers the full payment).

AGS Lending Partners' 30-Year DSCR program is priced off the 5-year US Treasury plus a spread driven by FICO, LTV, prepay, and DSCR. Rate is locked at application — not at closing.

DSCR loan: the math

DSCR = monthly rent ÷ monthly debt service (PITIA: principal + interest + taxes + insurance + association dues).

Worked example on a $300K rental:

Loan amount (75% LTV): $225K
30-year fixed at 7.5%: P&I = $1,573
Taxes ($3,600/yr): $300
Insurance ($1,500/yr): $125
HOA: $0
Total PITIA: $1,998
Market rent (1007 appraisal): $2,300
DSCR = $2,300 ÷ $1,998 = 1.15 → qualifies

AGS Lending Partners 30-Year DSCR: program quick reference

Parameter	Guideline
Property type	SFR, 2–4 unit, condo, townhome (non-warrantable case-by-case)
Term	30-year fixed (also 5/6 ARM, 7/6 ARM, IO options)
Min FICO	660
Max LTV — purchase	80% at FICO ≥ 700; 75% at 660–699
Max LTV — cash-out	75% at FICO ≥ 700; 70% at 660–699
Min DSCR	1.0 (no-ratio available with rate adjustment)
Loan size	$100K – $3M
Reserves	3 months PITIA on first deal; 6 months on cash-out
Borrowing entity	LLC, corporation, or trust (no individual)
Prepay	5/4/3/2/1 standard; 3/2/1 and 0/0/0 available with rate adjustment
Close timeline	21–28 calendar days from full file

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Frequently asked questions

What is a DSCR loan?

A DSCR loan is a long-term (typically 30-year) real estate investment loan that qualifies on the property's rental income rather than the borrower's personal income. The lender measures rent ÷ PITIA (principal, interest, taxes, insurance, HOA) — at AGS, a ratio of 1.0 or higher qualifies at standard rate.

Are DSCR loans the same as no-doc loans?

Close, but not identical. DSCR loans skip income verification but still require: full credit pull, 2 months bank statements (for reserves), entity documents, and an appraisal with a market rent schedule. No-doc/stated-income products were largely banned post-2010 — DSCR loans are the legal, fully-documented descendant.

Can I close a DSCR loan in my personal name?

Not at AGS Lending Partners. DSCR loans close into a business entity (LLC, corporation, or trust). This is the structural reason DSCR loans don't appear on personal credit reports the same way conventional financing does, and why experienced investors stack DSCR loans without DTI ceiling problems.

How is the rate set?

The rate is the 5-year US Treasury plus a spread driven by FICO, LTV, DSCR, and prepay structure. Lower LTV and higher FICO compress the spread; aggressive prepay structures (3/2/1 or 0/0/0) widen it. Rate locks at application, not at closing.

Does AGS lend on short-term rentals (Airbnb)?

Yes, with adjustments. STR income is qualified using AirDNA or PriceLabs market data plus the appraiser's 1007 long-term rent — whichever is more conservative drives DSCR. STR LTV caps at 70% on purchase and 65% on cash-out. Properties in STR-restricted municipalities are case-by-case.