How DSCR qualification works
DSCR compares what the property earns with what the loan costs. Take the yearly net operating income (rent minus operating expenses such as taxes and insurance) and divide it by the yearly principal and interest payments. A result of 1.00x means the income exactly covers the payment.
CR Equity AI still reviews your credit, cash reserves, and the property itself. What it does not ask for is your personal income documentation, which is why DSCR suits self-employed investors whose tax returns understate what they earn.
Real terms in 5 minutes, with a soft credit pull. Typical DSCR close is 9–15 days.
Rate-and-term or cash-out
A rate-and-term refinance replaces your current loan without taking cash out. A cash-out refinance replaces it and lets you take out equity, when the property value and DSCR allow. The DSCR refinance program page shows current cash-out limits.
DSCR loan qualification at a glance
| Detail | CR Equity AI |
|---|---|
| Minimum DSCR | 1.00x or higher |
| Tax returns or W-2s | Not required |
| Starting rate | 7.00% (final rate on your term sheet) |
| Lender fees | 1.50% origination at closing; 0.50% exit fee |
| Valuation | Appraisal, paid directly to the appraisal company |
| Application fee | $599 when you sign the term sheet |
| Typical close | 9–15 days |
| Loan size | $75K–$100M |
| Credit check to see terms | Soft pull only — no effect on your score |
Who DSCR loans are built for
- Investors refinancing a rental property they already own
- Self-employed investors whose tax returns do not reflect their real income
- Investment properties held for rental income
Not eligible
- A home you plan to live in
- Properties whose rent does not cover the loan payment (below 1.00x)
- Properties in Vermont, North Dakota, South Dakota, or Nevada
Example: what 1.00x means
A rental earns $36,000 a year after operating expenses, and the yearly loan payments are $36,000. The DSCR is 1.00x — the minimum. If the property earned $43,200 against the same payments, the DSCR would be 1.20x, a stronger file.
Frequently asked questions
Related pages
Direct lender. We lend our own capital. Soft credit pull only — no hit to your score to get terms.
Brokers: you can submit a client’s deal or learn about our broker program.