No-ratio DSCR loans in Arizona, when rental income doesn't have to cover the payment
Standard DSCR loans require the rent to cover PITI plus a margin. When your numbers are tight, fix-and-flip exit, short-term rental still ramping, repositioned property, a no-ratio DSCR program lets you close without meeting the ratio.
Program figures verified July 2026 — details change; confirm your scenario with us.
Standard DSCR vs no-ratio DSCR
Standard DSCR programs require monthly rent to be at least 1.0× PITI (some lenders 1.10× or 1.25×). On a $300K rental with $1,950 PITI, you need $1,950+ in market rent to qualify. If your actual or projected rent is $1,800, you don't fit.
No-ratio DSCR removes the cash-flow test entirely. The loan qualifies on the asset, the borrower's credit, and reserves, not on whether the rent covers the payment. Useful when the rent simply doesn't match yet.
Pricing trade-off
| Product | Min DSCR | Min Down | Pricing vs standard |
|---|---|---|---|
| Standard DSCR | 1.10–1.25 | 20–25% | Baseline |
| Low-ratio DSCR (0.75–0.99) | 0.75 | 25% | File-specific |
| No-ratio DSCR | N/A | 25–30% | File-specific |
| No-doc DSCR | N/A | 30–35% | File-specific |
When the no-ratio program is the right tool
- BRRRR refinance before the property is stabilized, rent isn't seasoned yet.
- Short-term rental ramping up, projections support the deal but trailing 12 won't.
- Value-add property mid-rehab, current rent doesn't reflect post-rehab market.
- Quick close requirements where seasoned rent rolls aren't available.
- Refinancing out of hard money where the property's true earning isn't documented yet.
Common questions
Can I refinance out of a no-ratio DSCR loan once the property is seasoned?
Yes. Once a property has 12 months of documented rent or short-term-rental income that clears the standard 1.0 DSCR, most investors refinance onto a standard-ratio DSCR program, which qualifies on the property's own numbers instead of the asset-and-credit basis a no-ratio loan uses. Seasoning periods vary by program, commonly 3–6 months minimum before that refinance is available.
Does no-ratio DSCR work for short-term rentals?
Yes, particularly for properties where AirDNA projections support the deal but actual trailing 12 doesn't exist or is weak.
What credit score do I need for a no-ratio DSCR loan?
Program floors are commonly higher than standard DSCR, often 680 minimum with the best terms at 720+, since the file leans more on credit and reserves without a rent-to-payment cushion. Reserve requirements usually run 6–12 months of PITIA rather than the 3–6 months typical on standard-ratio DSCR.
Can I use no-ratio for 5+ unit multifamily?
Some lenders extend to small multifamily (2-4 unit) under no-ratio. 5+ unit usually crosses into commercial DSCR with different programs.
How Mike + Cornerstone help
I structure DSCR loans daily for Arizona investors — Phoenix metro is one of the most active investor markets in the country. When the standard DSCR ratio doesn't work for your scenario, I'll show you which no-ratio program fits and walk through the cost trade-off so you know exactly what you're paying for the flexibility.
Talk to Mike first Get pre-approved
No pressure, no commitment. Free 20-minute consult. Mike will look at your scenario and tell you straight whether this works for you.