DSCR Loans in Arizona
On most programs you are qualified on the property's rental income rather than your personal tax returns. Here's what changes the math in Arizona.
Last updated: October 2026
Key Facts
Randy Mathis (NMLS# 1516760) is licensed to originate DSCR loans in Arizona through Lumin Lending Inc. (NMLS# 2716106). On most programs you are qualified on the property's rental income rather than your personal tax returns.
- DSCR ratio:
- 1.0 or higher qualifies for the strongest terms. Select programs accept ratios from 0.75 to 0.99, and select no-ratio programs accept rent below 0.75, typically at up to 75% LTV on a purchase with 640 to 700+ credit.
- Credit score:
- From 660 on most programs; from 620 on select programs. Some programs focus on equity over credit. Varies by lender.
- Max LTV, purchase:
- Up to 75%; higher on some programs for strong borrowers.
- Max LTV, cash-out refinance:
- Up to 75% for qualified borrowers. Cash-out dollar limits vary by lender.
- Prepayment:
- Terms vary. Shorter-penalty and no-prepay options exist on select programs.
See the national DSCR loan guide for credit and LTV detail, property types, and how qualifying works.
The Arizona Investor Market
Arizona is an active investor market in my 15-state footprint. Phoenix, Tucson, and Scottsdale each behave differently, so a DSCR ratio that works in one metro won't automatically work in another. In the Phoenix metro, a wave of new apartment supply has pushed rents down roughly 2-9% year-over-year through mid-2026 (depending on the tracker and property type). Single-family rental rents run in the rough $1,900-$2,200/month range, and overall average rents sit closer to $1,400-$1,900/month. So a rental bought at 2024-2025 pricing may pencil out to a lower DSCR today than the investor first underwrote. Tucson has held up better, with average market rent near $1,500/month in early 2026 and steady University of Arizona and aerospace-sector demand supporting occupancy. Scottsdale sits at the other end. It's a luxury-leaning market where March 2026 median sale prices reached roughly $965,000 (up about 9.7% year-over-year). That usually means a lower DSCR on a straight buy-and-hold unless the property carries short-term rental income.
What's Different About DSCR Loans in Arizona?
Phoenix, Tucson, and Scottsdale are three different DSCR conversations. Phoenix's softer rents mean you need a fresh appraised rent schedule, not last year's number. Tucson's steadier rent growth tends to produce simpler DSCR-1.0+ deals. Scottsdale's higher prices often need a larger down payment or short-term rental income to clear a 1.0 DSCR.
Arizona is a strong short-term rental (STR) market, especially around Scottsdale, Sedona day-trip areas, and the Phoenix metro during spring training. Select DSCR programs in my network count STR income using either a 12-month rental history (often with a smaller haircut) or an AirDNA projection (the property must meet the lender's AirDNA market and occupancy criteria). Both come with property-type and program restrictions that vary by lender.
Prepayment terms on Arizona DSCR loans vary by lender; most carry a declining penalty unless you buy it down. Terms vary. Shorter-penalty and no-prepay options exist on select programs.
Condos and condotels are common in the Scottsdale and greater Phoenix resort corridors. Non-warrantable condos are financeable on select DSCR programs. Expect a lower maximum LTV than a standard single-family or PUD purchase. The exact cap varies by lender and condo type.
Arizona's population growth keeps supporting rental demand even as Phoenix rents cool from their peak. That's part of why investors keep buying here despite the softer year-over-year rent numbers.
Worked Examples: Arizona DSCR Math
DSCR = Gross Monthly Rent ÷ Monthly PITIA. Here it is on two Arizona scenarios. Redo it with your own numbers.
Buy-and-Hold Single-Family Rental Near Phoenix
A 3-bedroom single-family rental purchased in a Phoenix-metro suburb.
Rent
$2,150
PITIA
$1.00 for every $1.05 of rent
DSCR
1.05
Illustrative market rent, roughly in line with 2026 single-family rental trackers for the Phoenix metro. It's not a specific property or appraisal.
Short-Term Rental Condo in Scottsdale
A 2-bedroom condo in a Scottsdale resort corridor, operated as a short-term rental.
Rent
$4,200 gross (per an AirDNA-style projection)
PITIA
$1.00 for every $1.29 of usable rent
DSCR
1.29
Illustrative STR projection, assuming the property meets the lender's AirDNA market and occupancy criteria. Underwritten income is typically reduced by around 20% to cover STR operating costs, unless a full 12-month rental history is used instead.
Illustrative examples only, not an offer, rate quote, or commitment to lend. Actual rent and PITIA figures depend on the specific property, its interest rate, loan term, taxes, insurance, HOA dues, and current appraised or leased rent, all of which vary by property and lender.
More Loan Programs in Arizona
Non-QM / Investor Loans
Bank statement, asset utilization, foreign national, and hard money/bridge programs.
HELOC / Home Equity
Tap equity from an existing Arizona property to fund your next down payment.
All Arizona Loan Programs
Conventional, FHA, VA, HELOC, and more for Arizona borrowers.
Run your own numbers with the mortgage calculators, or check the glossary for DSCR terminology. See licensing details for Arizona.
Frequently Asked Questions
Can I get a DSCR loan in Arizona?
Are Phoenix rents too low right now for a DSCR loan to work?
Can I use Airbnb income to qualify for a DSCR loan on a Scottsdale property?
Does Arizona restrict prepayment penalties on DSCR loans?
Is Randy Mathis licensed to do DSCR loans in Arizona?
Have an Arizona Rental in Mind?
Send me the property and the rent, and I'll tell you which DSCR program fits, anywhere in Arizona.
Or call (949) 990-6030
Rates and program availability may vary based on the state or region in which the financed property is located. This is not a credit decision, an offer, or a commitment to lend. Program restrictions apply.
Randy Mathis NMLS# 1516760 | DRE# 02236644 | Lumin Lending Inc. NMLS# 2716106 | DRE# 02291443. Equal Housing Opportunity.