DSCR Loans for Brokers: 1–4 Unit Deal Fit Guide

A borrower can ask for a DSCR loan and still have the wrong deal. Start with the property.

Loanspark’s Residential DSCR Program is designed for 1–4 unit investment properties and can close without borrower tax returns. Loans range from $100K to $10M, with a 21-day closing timeframe.

Check the unit count, loan size, LTV, credit profile, location, and the structure the investor needs.

How DSCR Qualification Works

Debt Service Coverage Ratio compares the property income used for qualification with the debt service it needs to cover.

In basic terms:

DSCR = qualifying income ÷ debt service

A 1.25x DSCR means the property produces $1.25 of qualifying income for every $1.00 of debt service. The inputs used in that calculation can vary by loan program.

For Loanspark deals, the applicable minimum DSCR is specified at the pricing stage. A no-ratio option is also available.

Loanspark’s Investment DSCR Calculator can help you test the numbers before pricing. Enter the property details, vacancy, expenses, and target DSCR to estimate the loan amount the scenario may support.

Which 1–4 Unit Deals Fit Loanspark’s Residential DSCR Program?

Use these parameters as a first-pass screen.

There’s one credit exception worth knowing: for ≤50% LTV deals (bridge & perm), no FICO minimum.

Recently listed properties can be considered as well. The listing must be removed during the application process.

Some 1–4 unit deals belong elsewhere. If the purchase also needs renovation financing, check Fix & Flip. For a new residential build, check Ground-Up Construction.

What Should Brokers Have Ready Before Pricing?

Start the pricing conversation with five core deal details:

• Property address and value
• Vacancy status
• Rent roll, or gross income and expenses
• Borrower experience
• Credit score

Other factors can affect the scenario too. Flag citizenship status, recent foreclosure history, a recent listing for sale, a recent purchase below current value, or negative mortgage history when they apply.

That gives the pricing request the context it needs.

What Changes at 5+ Units?

A four-unit property and a five-unit property can look almost identical from the street. Loanspark routes them differently.

Multifamily properties with five or more units move to the Commercial program. Mixed-use properties also fall under Commercial.

DSCR can still be part of qualification in applicable Commercial scenarios, but the program parameters differ from the 1–4 unit product.

On the Loan Programs page, brokers can find these options under Multifamily Loans and Mixed-Use Property.

Frequently Asked Questions

What is the minimum loan amount for a Loanspark DSCR loan?

Loanspark’s current Residential DSCR range starts at $100,000 and goes up to $10 million.

Do DSCR loans require 20% down?

Loanspark’s current Residential DSCR guidelines allow purchase LTV up to 80%. Gift funds can be used for down payments and reserves.

Can duplexes and other 2–4 unit properties qualify?

Yes. The program covers single-family properties, duplexes, townhomes, condos, and other properties with up to four units.

Do borrowers need to provide tax returns?

Loanspark’s DSCR program can close without borrower tax returns. Property information still matters for pricing, including the rent roll or gross income and expenses.

How long does a Loanspark DSCR loan take to close?

The current closing timeframe is 21 days.

Which states are excluded from Residential DSCR?

Loanspark currently excludes Arizona, Idaho, North Dakota, Nevada, Oregon, South Dakota, Utah, and Vermont from its Residential DSCR program. Other Loanspark programs have their own eligibility requirements.

Have a 1–4 Unit Deal on Your Desk?

Run the property through the checks above and gather the five pricing inputs before you send the scenario.

Loanspark’s broker program gives brokers a dedicated partner portal while keeping them client-facing throughout the process.

Explore the Broker Program