Loans · DSCR rental
DSCR rental loans
Long-term rental loans sized on the property's rent, not your personal income.
At a glance
When a dscr rental loan fits
Best forBuying or refinancing rental properties held in an LLC
What sizes the loanThe property's rent compared with its monthly payment
TermLong term, often 30 years
Personal income docsUsually not required. The rent carries the loan
Who it fitsInvestors building a rental portfolio
Closes inAn LLC or other entity, business purpose only
Worked example
How DSCR is calculated
| Example deal | Figure |
|---|---|
| Monthly rent | $2,400 |
| Principal and interest | $1,550 |
| Taxes, insurance and HOA | $450 |
| Total monthly payment (PITIA) | $2,000 |
| DSCR (rent ÷ PITIA) | 1.20 |
Example onlyA DSCR above 1.0 means the rent covers the payment. Each lender sets its own minimum, and some lend below 1.0 at different terms. We show you how your property scores with each one. These figures illustrate the math. They are not an offer, a rate quote or a promise of approval.
Your file
What to have ready
- Lease, or a market rent estimate
- Insurance quote or declarations page
- Property tax and HOA amounts
- Mortgage statement if refinancing
- Entity documents, guarantor ID, 2 months of business bank statements
How we place it
Options in 48 business hours
Once your file is complete, we send it to the lenders in our directory that fund this kind of deal. Their answers come back to you on one page, side by side, with our fee in writing.
Questions
What investors ask us
Do DSCR loans need tax returns?
Most DSCR lenders size the loan on the property's rent rather than your personal income. Each lender has its own document list, which we give you up front.
Can I use a DSCR loan for a home I live in?
No. DSCR loans are business-purpose loans for investment property. For a home you will live in, we introduce you to a licensed mortgage professional.
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