DSCR loans by state

DSCR Loans in New Hampshire

Southern New Hampshire (Manchester, Nashua) benefits enormously from Boston metro spillover — residents get New Hampshire's tax advantages while commuting to Boston-area jobs. This drives strong rental demand and premium rents. The Seacoast (Portsmouth, Dover) is a desirable area with tourism and tech employment. Concord offers more affordable state-capital housing.

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What is a DSCR loan?

A Debt Service Coverage Ratio (DSCR) loan is a type of investment property mortgage where the borrower qualifies based on the property's rental income rather than personal income. Lenders calculate the DSCR by dividing the property's gross rental income by the total debt obligation (principal, interest, taxes, insurance, and HOA). A ratio of 1.0 means the property breaks even; most lenders require a DSCR of 1.0–1.25 to approve the loan.

Because DSCR loans do not require W-2s, tax returns, or employment verification, they are popular among self-employed investors, LLC-based portfolios, and foreign nationals. Typical terms include 30-year fixed or adjustable rates, 75–80% LTV, and minimum credit scores of 660–700. State-level factors like property taxes, insurance requirements, and landlord-tenant laws directly affect the DSCR calculation and vary significantly across markets.

New Hampshire Property Taxes & DSCR Impact

New Hampshire has one of the highest effective property tax rates in the U.S. at approximately 1.86%. Some municipalities exceed 2.5%. With no income or sales tax, property taxes are the state's primary revenue source, creating a heavy burden for investment properties.

The paradox of New Hampshire: no income tax is great, but property taxes of 1.86%+ create significant operating expense. On a $350,000 property, taxes are ~$6,500/year ($542/month). Investors need properties commanding $2,000+/month rents (common in southern NH) to achieve positive DSCR after taxes, insurance, and debt service.

New Hampshire Landlord-Tenant Laws

New Hampshire is moderately landlord-friendly. No rent control exists. Eviction for nonpayment requires a 7-day notice, and the court process takes 3–6 weeks. The state has a landlord-tenant commission that handles disputes.

New Hampshire Income Tax for Investors

New Hampshire has no income tax on wages or salary. The state formerly taxed interest and dividend income at 5%, but this was phased out entirely as of 2025. Rental income is not subject to state income tax.

Insurance Costs in New Hampshire

Insurance costs are moderate at $1,200–$1,900 per year. Coastal seacoast area properties face some storm risk from nor'easters. No major natural disaster premium.

Top Investor Markets in New Hampshire

•Manchester
•Nashua
•Concord
•Dover/Portsmouth
•Keene

Licensing Requirements

New Hampshire requires mortgage brokers and bankers to be licensed through the New Hampshire Banking Department.

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