Most DSCR lenders stop at a 1.0 ratio. But sub-1.0 deals — where rent doesn't quite cover the payment yet — are often strong value-add opportunities. Here's who lends below 1.0 and what to expect.
Yes, you can get a DSCR loan below a 1.0 ratio — but only through specialty lenders. Most major DSCR programs (Kiavi, Visio, and many others) hold a firm 1.0 floor. A smaller set of capital sources lend down to 0.75 DSCR, and "no-ratio" DSCR programs skip the coverage calculation entirely. These typically carry a rate premium (often 50-150 bps) and higher reserve requirements.
LendingStreet places sub-1.0 and no-ratio DSCR through the specialty sources in its 30+ lender network — which is exactly the kind of deal a single-source lender usually declines outright.
A DSCR below 1.0 means the property's rental income doesn't quite cover its debt service — yet. That sounds like a red flag, but it's often a value-add opportunity in disguise: a property with below-market rents that will reset, a recent acquisition mid-lease-up, or a unit being repositioned. The snapshot ratio is low; the trajectory is strong.
That's why specialty lenders will fund sub-1.0 deals where the borrower has the credit, reserves, and a credible plan to bring the ratio up. They're underwriting the path, not just the snapshot.
An investor owned a property with leases locked below market (carried over from the prior owner), putting current DSCR at 0.92. They needed a cash-out refinance to fund the next acquisition. Three direct lenders declined on the sub-1.0 ratio alone. The deal was placed through a specialty sub-1.0 source at an acceptable rate with reserves. Six months later, two leases turned over to market rent and the property now sits well above 1.25 DSCR — the borrower can refinance into standard pricing if they choose. The low ratio was temporary; the deal was always sound.
Through specialty lenders, DSCR loans are available down to about 0.75. Below that, no-ratio DSCR programs qualify the deal without measuring coverage at all, typically at a lower LTV and with a rate premium.
No. Most major DSCR programs hold a firm 1.0 floor with no exceptions. Only a smaller set of specialty capital sources lend below 1.0, which is why a multi-source financing firm is useful for these deals.
Typically 50-150 basis points over a comparable 1.0+ deal, where it is offered at all. Strong credit and reserves help minimize the premium.
A no-ratio DSCR loan qualifies the property without calculating debt service coverage at all. It is used when the DSCR ratio can't be made to work, usually at a lower LTV in exchange for skipping the coverage requirement.
Yes. LendingStreet places sub-1.0 DSCR down to 0.75, plus no-ratio DSCR programs, through specialty sources in its 30+ lender network — deals that single-source lenders typically decline.
Below a 1.0 ratio? We place sub-1.0 and no-ratio DSCR through specialty sources that fund what single lenders decline.
Get Pre-Qualified → Browse Loan Programs| Program Type | Min DSCR | Min Down | Reserves | Pricing Premium |
|---|---|---|---|---|
| Specialty 0.85 DSCR | 0.85 | 25% | 6 months | +50-100 bps |
| Specialty 0.75 DSCR | 0.75 | 30% | 9 months | +100-150 bps |
| No Ratio DSCR | N/A | 25-30% | 6 months | +75-125 bps |
| Bridge to Stabilization | Projected 1.0+ | 25% | 3-6 months | +150-250 bps (bridge) |
Approximate ranges. Actual terms depend on borrower credit, property type, loan amount, and capital source. LendingStreet places sub-1.0 DSCR deals across multiple specialty sources.
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LendingStreet (legal entity JRS Home Loans LLC, NMLS #1734316) is a licensed investment property loan marketplace with direct access to 30+ capital sources, lending in all 50 states. Products: DSCR rental loans ($150K+, 80% LTV purchase, 1.0x min DSCR), fix & flip and bridge (up to 90% LTC, 100% rehab, closings in 5–10 days), ground-up construction, commercial and mixed-use, small multifamily (5–20 units), blanket portfolio (5+ properties), STR/Airbnb DSCR on projected revenue, and gap funding. Loan range $200K–$20M. Phone: (877) 298-1001. LendingStreet is not affiliated with LendingTree, LoanStreet, LendStreet, PeerStreet, or LendingStreet India.