DSCR Loans for Rental Properties

DSCR Rental terms, upfront

These are program standards, straight from our terms sheet. Points and fees vary by deal; the leverage, loan sizes, and structure don't.

Business-purpose, non-owner-occupied only; entity borrowers (LLC or corporation) required; full recourse. Rates shown are the lowest offered and depend on borrower FICO, experience, and the deal. Points and fees vary. *Stabilized Bridge offers a no-DSCR option for properties listed for sale and a 1.10x exit-DSCR option for rent-ready properties. Not available in every state. Nothing here is a commitment to lend or an offer of specific terms; all loans subject to underwriting and approval.

Who this loan is for

A DSCR rental loan is long-term money for a property that earns its keep. It's a good fit if you're:

• Self-employed or heavily written-off. Your tax returns undersell what you earn. The property's rent tells the real story.
• Growing a rental portfolio one door at a time and don't want your personal debt-to-income ratio to cap how many you can own.
• Finishing a BRRRR and refinancing a rehabbed, rented property out of short-term money. (See BRRRR financing.)
• Pulling equity out of a rental you already own to fund the next deal — cash-out goes up to 75% LTV.
• Buying a rental outright and want a 30-year term with a payment you can plan around.

Got several rentals you'd rather put under one loan? Look at our rental portfolio loans instead. Not rented yet? A bridge loan can carry it until it is.

What you'll need

DSCR loans skip the personal income paperwork, but not the basics. Expect us to ask for:

• The rent: a current lease if it's rented, or the market rent if it isn't. The appraisal will confirm what the property can earn.
• The carrying costs: property taxes, insurance, and any HOA dues. They're part of the payment the rent has to cover.
• Credit: a 660 minimum FICO.
• Your entity: an LLC or corporation to hold the property and borrow, plus a personal guarantee. Our loans are full recourse.
• Cash reserves: enough liquidity to cover a vacancy or a surprise repair without missing a payment.
• For a refi: what you owe now, and what you've put into the property.

How DSCR works, with numbers

DSCR is the rent divided by the full monthly payment — principal, interest, taxes, insurance, and HOA (lenders call that PITIA).

Run your own numbers with the DSCR calculator, or read the full guide: what is a DSCR loan?

DSCR loan vs. a conventional mortgage

Neither is "better." A conventional loan can price lower if you qualify easily. A DSCR loan is built for investors whose tax returns don't tell the whole story, or who've run out of room on conventional financing. We'll tell you straight which one makes more sense for your deal — even if it isn't ours.