DSCR Loans in Late 2025: The Truth Most Investors Still Don’t Know (But Need To)
I’m closing 6–10 DSCR deals every single month, and the #1 thing I keep hearing is:
“I was told I don’t qualify anywhere else… is this actually real?”
Yes. It’s very real — and right now we’re in one of the best windows for DSCR financing we’ve seen in years.
Here’s what’s actually happening in the market today (December 2025):
✅ The “DSCR crash” headlines you saw in 2024? Largely over.
Delinquencies peaked mid-2024 on 9–10% rate deals with wildly optimistic Airbnb projections. Most of those have either worked out or been sold. The survivors (and the new deals) are far more conservative — and lenders have responded by loosening guidelines again.
✅ Rates have dropped 125–200 bps from their 2024 highs.
We’re seeing par pricing in the high-5s to low-7s on 30-year fixed DSCR with 1.0–1.25 ratios. That’s making hundreds of markets cash-flow again that were borderline 12 months ago.
✅ Big players keep jumping in — and getting more aggressive.
- We offer up to $6M, 60% LTV, 760 FICO, 1.0 DSCR minimum
- Up to $3M, 80% LTV, 720 FICO, 1.0 DSCR minimum
- Dozens of new portfolio lenders are fighting for clean 700+ FICO, 20–25% down deals
What this means for you as an investor:
You can now buy or refinance investment property with:
- Zero personal income docs (no tax returns, no W-2s, no paystubs)
- Unlimited financed properties (Fannie Mae’s 10-loan limit doesn’t apply)
- 30-yr fixed or interest-only options
- Short-term rental income fully accepted (Airbnb/VRBO schedules or appraiser projections)
- Close in your LLC for liability protection
- Cash-out refi available (pull equity tax-free to buy the next deal)
Real Deal
Closed by Derek Aron at Scout Advisors closed last week:
$3,000,000 cash-out in Kissimmee, Florida
Rents: $40,000/mo (short-term rental)
New PITIA: $32,400/mo
DSCR = 1.25
Rate: 7% 30-yr fixed, closed in LLC, zero personal income docs. No prepay.
Client already owns a portfolio of properties in Florida — no conventional lender would touch him.
The bottom line in late 2025:
If your deals cash-flow conservatively (and you’re putting 20–25% down), DSCR is arguably the strongest tool in the investor toolbox right now.
If you’ve been sitting on the sidelines because “rates are too high” or “I heard DSCR is dead,” let’s talk. We will run real numbers on your deal or portfolio in about 10 minutes — no cost, no pressure.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Programs and interest rates are subject to change without notice. Contact your Scout Advisors mortgage expert for current rates and to confirm program eligibility.
