‍

The article below provides a comprehensive overview of the Best DSCR Lenders in 2025. In this lender market review, we analyze and compare interest rates, LTV ratios, and closing times.

What Is A DSCR Loan?

A DSCR (Debt Service Coverage Ratio) is a loan product designed for real estate investors. Unlike traditional loans, DSCR loans evaluate a property's income potential rather than the borrower's personal income. This makes them ideal for rental property owners or those looking to invest in income-generating properties.

DSCR is calculated by dividing the property's monthly rent by the total debt service (principal and interest payments, taxes, and insurance).

DSCR = Rent / (Principal and Interest Payments, Taxes, and Insurance)

A DSCR above 1.0 indicates that the property generates more income that it costs to own and operate the property which is a requirement for DSCR loans.

Selecting the best lender for a DSCR loan is important because lower principal and interest payments increase the property’s DSCR and ultimately the investor’s monthly return.

To evaluate DSCR Loans scenarios including loan amounts, interest rates, and monthly cash flow, you can use our DSCR Calculator.

List Of The Best DSCR Lenders In 2025

1. Ridge Street Capital

Ridge Street Capital is a DSCR lender that provides DSCR loans on a wide range of property types and at industry leading rates.

DSCR Property Types: Most lenders limit DSCR Loan to 1-4 unit residential properties. Ridge Street offers DSCR loans on a wide variety of property types to accommodate investors needs as their businesses grow:

1. Single Family (1-4 Units)
2. Small Multifamily (5-10 Units)
3. Mid-Sized Multifamily (10-25 Units)

Of the above property types, Ridge Street accepts Long Term Rentals and Short Term Rentals (also known as Airbnb Loans)

Rates & Terms: DSCR Loan Rates are indexed against US long term debt markets (typically the 5YR or 30YR US Treasury Yield). In Q1 of 2025, DSCR Rates range between 6.5% to 7.75%.

Loan Amounts go up to 80% of the property value on Purchase transactions or Rate & Term Refinance transactions and up to 75% of the property value on Cash Out Refinance transactions.

Closing Time: Ridge Street closes DSCR Loans in 14-21 days.

Most importantly, Ridge Street has one of the most responsive and knowledgeable teams in the investment property lending industry. Whether you have an active deal or want to book a call to get more information, the team is always happy to help.

2. Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions is a leader in Non-QM lending, offering diverse DSCR loan options. Their transparent process and innovative products cater to investors looking for flexible underwriting standards and fast approvals. Angel Oak Mortgage is one of the top lenders in the DSCR space but do not work directly with borrowers. Angel Oak’s loans are originated by 3rd Party brokers and as such the borrowing experience depends largely on the brokerage firm you're working with. Angel Oak is most valued for their rates as they are a wholesale lender.

3. Truss Financial Group

Truss Financial Group is known for its personalized service and specialized DSCR loan programs. They provide competitive rates and terms, making them a reliable partner for real estate investors seeking long-term solutions. Truss Financial is a brokerage firm not a direct DSCR lender. The team is well trained and responsive and a great option for first time investors.

4. Constitution Lending

Constitution Lending is a Real Estate Credit Fund that focuses on working with experienced investors. According to their website, 88% of their clients have been with them for 3+ years. As such, this firm prioritizes serial BRRRR Investors that finance construction and refinances with the firm. They offer quick approvals and flexible repayment options, making them a strong lender for those focused on scaling their real estate portfolios.

5. Griffin Funding

Griffin Funding is a national mortgage broker based out of California that has a significant digital presence online. They cater to a wide range of investors and offer innovative solutions for financing income-generating properties.

‍

How This List Was Formed?

To create this list of the Best DSCR lenders in 2025, we evaluated lenders based on several criteria:

• Flexibility of DSCR Loan Products: Variety property types financed, DSCR Ratio Requirements, and investor experience requirements.
• Rates and Terms: Reported Rates on specific examples of closed loans.
• Customer Service: Responsiveness and support for borrowers based on customer reviews.
• Specialized Expertise: The top ranking companies focus specifically on investment properties.

The goal is to provide a comprehensive guide to help you choose the right DSCR lender for their investment property financing with a DSCR Loan.

‍

What Are The Requirements For A DSCR Loan?

While requirements vary by lender, here are the common criteria for DSCR loans:

• Minimum DSCR: Typically 1.0 or higher.
• Credit Score: A score of 660 or above is often required.
• Down Payment: Ranges from 20% of the property's value.
• Property Appraisal: Ensures the property’s income potential and value align with the loan amount.
• Loan Purpose: Must be for investment properties, not owner-occupied homes.

‍

Getting Started With A DSCR Lender

Ready to secure a DSCR loan? Do you have more questions and want to book a call with an expert?

‍Get A Quote | Get Pre-Approved | Book A Call

Ridge Street Capital is here to help you navigate the process and to provide industry leading DSCR loans for your rental properties.

‍