Qualify on the Rent, Not Your Paycheck
Every document a DSCR loan needs, split by purchase and refinance, plus what to bring if you buy in an LLC.
A DSCR loan qualifies an investment property on its rent. Your personal income is not part of the decision.
This DSCR loan document checklist shows what investors need for a purchase and a refinance, what an LLC needs, and how much to keep in reserves. The JD.Mortgage Team at PRMG is a direct lender. 25+ years, 3,100+ closed loans, Scotsman Guide Top Originator 2026. Lending in 49 states. New York excluded.
What Documents Do You Need for a DSCR Loan? The Short Answer
For a DSCR loan, you need a photo ID, 30 days of asset statements for the down payment and reserves, an insurance quote with 6 months of rent loss coverage, and mortgage statements for other properties. A purchase can be vacant. A refinance needs a signed lease with at least 3 months left. No tax returns, pay stubs or W-2s.
Your DSCR Loan Checklist
Everyone
- ☐ Photo ID
- ☐ Asset statements for your down payment and reserves: last 30 days, all pages
- ☐ A homeowners insurance quote for the property, including 6 months of rent loss coverage
- ☐ Mortgage statements for any other properties you own
- ☐ Proof you own or rent your own home. Every borrower on a DSCR loan must.
Buying
- ☐ No lease needed. The property can be vacant.
- ☐ A copy of the signed purchase contract and all addenda
Refinancing
- ☐ A signed lease with at least 3 months left at closing, for every unit
- ☐ Month-to-month tenants are fine with proof, such as a signed extension letter
- ☐ An unleased property can still refinance at up to 70% LTV on one of our options
Buying in an LLC or corporation
- ☐ EIN letter from the IRS
- ☐ Operating agreement or similar ownership papers
- ☐ You sign a personal guaranty at closing. The loan is still in your name; the entity holds title.
Want to know your ratio before you shop? Send us the rent and the expected payment and we will run it.
Run My DSCRReserves and Down Payment Rules
| Situation | Reserves required |
|---|---|
| DSCR 1.00 or higher, loan $1,000,000 or less | 3 months of PITIA |
| DSCR 1.00 or higher, loan over $1,000,000 | 6 months of PITIA |
| DSCR below 1.00 | 6 months of PITIA |
| Other properties you own | No extra reserves |
- Gift money can go toward the down payment and closing costs after you put in your own required part. Gifts cannot count as reserves.
- First-time investors need a 700 credit score and a DSCR of at least 1.00.
- At closing, you sign a notarized statement that the property is for business use, not for you to live in.
The appraiser writes up market rent. We use the lower of the lease or market rent, and our DSCR loans page shows how the ratio is calculated.
How to Apply, Step by Step
Start the application
It takes about 2 minutes. No SSN and no credit pull on the first step.
We run the ratio
Rent divided by the full payment tells us which program fits.
Upload the checklist
Assets, insurance quote, lease if refinancing, and LLC papers if needed.
Close
The appraiser confirms value and market rent, and you close in your name or your entity’s.
DSCR Loan Application FAQ
What documents do I need for a DSCR loan?
You need a photo ID, 30 days of asset statements for the down payment and reserves, an insurance quote with 6 months of rent loss coverage, and mortgage statements for other properties. A refinance also needs a signed lease. You do not need tax returns, pay stubs or W-2s.
Do I need a lease to get a DSCR loan?
Not on a purchase. The property can be vacant. A refinance needs a signed lease with at least 3 months left for every unit, and month-to-month tenants are fine with proof. An unleased refinance is allowed at up to 70% LTV on one of our options.
How many months of reserves does a DSCR loan need?
Three months of PITIA when the DSCR is at least 1.00 and the loan is $1,000,000 or less. Six months when the loan is larger or the DSCR is below 1.00. Other properties you own do not add reserves.
Can gift money be used on a DSCR loan?
Yes, for the down payment and closing costs after you contribute your own required part. Gift money cannot count toward reserves, so the 3 or 6 months of payments you keep in the bank after closing have to be your own funds.
Can I close a DSCR loan in my LLC?
Yes. The LLC holds title and you sign a personal guaranty. We need the EIN letter from the IRS and the operating agreement or similar ownership papers.
Can a first-time investor get a DSCR loan?
Yes. First-time investors need a 700 credit score and a DSCR of at least 1.00. If you do not own any home at all, one of our options works at up to 70% LTV with a 720 score and a $750,000 maximum loan.
Related Pages
About the Author
J.D. Peck is an Area Manager and Mortgage Loan Originator (NMLS #314883) with the JD.Mortgage Team at Paramount Residential Mortgage Group, Inc. (NMLS #75243), based in Colorado Springs. 25+ years, 3,100+ closed loans, Scotsman Guide Top Originator 2026. Lending in 49 states. New York excluded.
Last updated: September 25, 2026. Program facts sourced from the PRMG DSCR Product Profile (09/17/2026).
Start Your DSCR Application
Send the property and the rent. We run the ratio and tell you which program fits before you commit.
What are you looking to do?
No SSN required. No credit pull. Takes about 2 minutes.