Micah · Capital KingsFounder & CEO

Sat 9:38 PM

Can I get a DSCR loan as a first-time investor?

Delivered

Hey! Yes, definitely. A DSCR loan qualifies on the rent the property brings in, not your income

No tax returns, no W-2s and no landlord experience needed, so your first rental is priced the same as someone’s tenth

Ok what do I need?

660+ credit, 20% down at 700+, about 3 months of the payment in reserves and an LLC to close in. Then the rent just has to cover the full payment

Send me the property through our application and I’ll get you a term sheet. It takes about two minutes and doesn’t pull your credit

Get your term sheetcapitalkings.co · Apply

Sat 9:47 PM

Ok just submitted it!

Application submittedDSCR rental

Purchase price: $200,000
Monthly rent: $1,850
Credit: 720-739
Down payment: 20%

Sat 9:48 PM

Got it! Here’s your term sheet. $160,000 at 7.34%, about $1,517 a month all in, so the rent covers it with room to spare (1.22 DSCR)

Term sheet · Sample first rentalTap to open

You’d bring $50,652 to close with every fee in, mine included, and $55,203 in the bank covers the reserves too

Your turn

Do you want me to price yours? Same application, same two minutes

Get my DSCR term sheet →Text Micah directly(281) 636-5682

Or just text me the deal. This is my direct cell, I answer it myself, nights and weekends too

Or replyPrice my first rental

In short

Yes. A DSCR loan is qualified on the rent the property brings in, not on your income or your landlord track record, so a first rental is priced the same as a tenth one. You need 660+ credit, 20% down at 700+, about 3 months of the payment in reserves, an LLC to close in, and rent that covers the full payment. We’re a broker, not a lender, so we compare your file across 400+ lenders and put every fee on the term sheet before you sign.

Prefer to talk it through? Call or text Micah at (281) 636-5682.

Reviewed by Micah Foster, Founder & CEO · October 2026

What it takes

4 main things for a deal to qualify. No experience required.

Credit660+

700 and up gets the most leverage.

Down payment20%

At 700+ credit. 25% at 680 to 699, 35% at 660 to 679.

Reserves3 months

Of the full payment, still in your account after closing.

Rent coverage1.00 DSCR

Rent at least equal to the full payment, taxes and insurance included.

Not required: landlord experience, tax returns, W-2s or a debt-to-income ratio. You close in an LLC, on a rent-ready 1-4 unit rental, with a loan of $100,000 or more.

Terms by credit

First-time investor DSCR terms, as of October 2026

Credit	Max loan	Down	Rate at max	Rate, 30% down
760+	80%	20%	7.05%	6.69%
740-759	80%	20%	7.21%	6.85%
720-739	80%	20%	7.34%	6.98%
700-719	80%	20%	7.46%	7.10%
680-699	75%	25%	7.87%	7.68%
660-679	65%	35%	7.68%	65% max

30-year fixed, single family, purchase, 5-year step-down prepayment penalty, no origination fee, about $2,295 in lender fees. 2-4 units add 0.26%. Terms as of October 2026. Experience isn’t a row because it doesn’t change the price. We re-price every file against the full network before you sign.

A worked example

One first rental, to the dollar

A $200,000 single-family rental renting for $1,850 a month, bought by a first-time investor with 720 to 739 credit and 20% down.

Loan$160,000

Rate, 30-yr fixed7.34%

Full payment$1,517

DSCR, rent ÷ payment1.22

Does the rent cover the payment?1.22

Rent$1,850

Payment$1,517

What you need in the bank$55,203

$40,000Down payment

$10,652Closing costs, every fee

$4,5513 months of reserves, stays yours

Cash to close is $50,652: the down payment plus closing costs. Proof of funds adds the reserves, $55,203 in all. Principal and interest $1,101, taxes $333 and insurance $83 a month, estimated at 2% and 0.5% of the price until you have the real bills. $1,850 of rent leaves $333 a month before vacancy and repairs.

The real term sheet

Every fee, and who gets paid

This is the term sheet our application builds for the same rental. Every line says who gets paid.

Cash to close$50,652

Proof of funds to show$55,203

Where the $50,652 goes

Down paymentEquity$40,000
Appraisal feeAppraiser$550
Prepaid interestLender$483
Lender fees, underwriting and legalLender$2,295
Broker feeBroker$2,000
Closing / titleTitle co$3,324
Property insuranceInsurer$1,000
Escrow setup, 3 months of taxesLender$1,000

The gold broker line is the only money Capital Kings earns. Proof of funds adds $4,551 of reserves, 3 months of the $1,517 payment, that stay in your account.

A sample sheet for a made-up borrower, built the same way yours is. Yours takes about two minutes and doesn’t pull your credit.

Run the numbers

Price your first rental

Purchase priceMonthly rentCredit scorePurposeUnitsAnnual taxes (blank = 2% est.)

Enter your numbers to see the rate, the loan size and the ratio.

Get the real term sheet →Same numbers as the application. No credit pull, nothing saved.

First-time mistakes

Five things that sink a first rental

Using the seller’s tax bill.Taxes are part of the payment the rent has to cover, and an investor’s bill is often higher than the owner-occupant’s it replaces. Run the ratio on the full price at the county rate.
Counting Airbnb income as rent.Short-term rental income is handled lender by lender. Underwrite on a lease or the appraiser’s market rent first.
Buying a fixer with a DSCR loan.The house has to be rent-ready at closing. If it needs work, that’s a hard money loan first and a DSCR refinance once it’s rented.
Spending the reserves.The lender checks your bank statements for the reserves after the down payment and closing costs clear. Budget them from the start.
Forming the LLC at the last minute.The lender reviews the LLC’s formation papers, EIN letter and operating agreement before closing. Set it up before you’re under contract.

Where we lend

DSCR loans in 37 states

We arrange DSCR loans for first-time investors in 37 states. Each state page has its own terms, markets and calculator.

Questions

First-time investor DSCR FAQ

Can I get a DSCR loan with no experience?

Yes. A DSCR loan qualifies on the property’s rent, not on how many rentals you’ve owned, and the term sheet prices a first rental exactly the way it prices an experienced landlord’s. What you need is 660+ credit, the down payment, about 3 months of the full payment in reserves, an LLC to close in, and a rent-ready property whose rent covers the payment.

What credit score do I need for a DSCR loan as a first-time investor?

660 or higher. Credit sets your leverage: 700 and up borrows 80% of the price (20% down), 680 to 699 borrows 75% (25% down), and 660 to 679 borrows 65% (35% down). Under 660, send the file anyway and we price it by hand with the lenders that go lower.

How much do I need to put down on my first rental with a DSCR loan?

20% of the price with 700+ credit, 25% at 680 to 699, and 35% at 660 to 679. Closing costs and reserves are on top of the down payment. Putting 30% down lowers the rate, as the terms table on this page shows.

How much cash do I need to buy my first rental with a DSCR loan?

On the worked example, a $200,000 rental at $1,850 a month and 720 to 739 credit: $40,000 down plus $10,652 of closing costs is $50,652 cash to close. The lender also wants $4,551 of reserves (3 months of the $1,517 payment) still in your account after closing, so the proof of funds is $55,203.

Do I need landlord experience or a W-2 job for a DSCR loan?

No. There are no tax returns, W-2s, pay stubs or debt-to-income ratio on a DSCR loan, and no landlord resume. If you don’t own a home yet, tell us up front: a few lenders want a primary residence or a mortgage history behind you, and we send the file to the ones that don’t.

Do I need an LLC for a DSCR loan?

Plan on one. DSCR loans are business-purpose loans, and most of the lenders we work with close them in an LLC with you as the guarantor. The lender reviews the LLC’s formation certificate, EIN letter and operating agreement, so form it before you’re under contract if you can.

What DSCR ratio do I need on my first rental?

1.00 or higher: the monthly rent has to cover the full payment, meaning principal, interest, taxes, insurance and any HOA. On the example the rent of $1,850 against a $1,517 payment is a 1.22 ratio. If the ratio comes in under 1.00, the loan gets smaller until the rent carries it.

Can I use a lease or market rent if the house is vacant?

Either. A signed lease sets the rent. If you’re buying it vacant, the appraiser’s rent schedule (form 1007) sets a market rent and the loan is sized on that. Short-term rental income is handled lender by lender, so tell us first if the plan is Airbnb.

Can I live in the property with a DSCR loan?

No. A DSCR loan is for investment property only, held for rent. If you plan to live in it, even part of a duplex, you need an owner-occupied mortgage instead, which we don’t arrange.

Which states can I get a first-time investor DSCR loan in?

37 states: Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Washington, West Virginia, Wisconsin and Wyoming.

Is Capital Kings the lender?

No. Capital Kings LLC is a broker, not the lender. We compare DSCR lenders from a network of 400+ for your file, and our broker fee is one labeled line on the term sheet before you sign.

Who you’re working with

Founder & CEO

Micah Foster

Micah brokers DSCR, hard money and new construction loans for real estate investors across 37 states. He founded Capital Kings LLC to give investors a broker who compares the market on their behalf instead of pitching one lender’s product, and every term sheet is itemized down to the last fee.

Send us your first rental →

Keep reading

Ready to price your first rental?

Two minutes to a DSCR term sheet. No credit pull, no tax returns, every fee on the page.

Get my DSCR terms →Call (281) 636-5682 Text Micah