DSCR Loans for
Real Estate Investors
Rates starting at 5.95% | Up to 85% LTV | DSCR as low as 0.75
Whether you're purchasing your next rental, refinancing for better terms, or pulling equity out of an existing property, our DSCR loan programs are designed specifically for real estate investors.
Fill Out This Form to Get Your DSCR Quote Today!
DSCR RENTAL LOAN RATES & TERMS
Finance the Property. Not Your Paycheck.
Long-term rental financing based primarily on the property's rental income rather than traditional personal-income qualification.
Built for investors purchasing, refinancing or pulling equity from cash-flowing rental properties.
Ideal for: Single-family rentals, 2–4 unit properties, Short-term rentals, Rental portfolios,
Rate/term refinances, andCash-out refinances
Rental Property Financing Built for Investors
Traditional mortgages weren't designed around the way real estate investors operate.
DSCR loans are different.
Instead of qualifying primarily on your personal income and employment, qualification is based on the rental property's ability to support its debt.
A Debt Service Coverage Ratio loan is a business-purpose mortgage for rental property investors. Instead of qualifying primarily on your personal debt-to-income ratio, the lender looks at whether the property's eligible rental income can cover its required monthly housing expense.
That can make DSCR financing useful for investors who:
- Are self-employed or have complex income
- Take legitimate business deductions that reduce taxable income
- Own multiple financed properties
- Want to grow without repeatedly documenting personal income
- Need long-term financing after completing a rehab
- Want to pull equity from a stabilized rental
DSCR loans are for non-owner-occupied investment properties. They are not consumer mortgages for a primary residence.
How DSCR Is Calculated
For many residential DSCR programs, the ratio is calculated as:
DSCR = Eligible Monthly Rental Income ÷ Monthly PITIA
PITIA generally includes principal, interest, property taxes, insurance, and association dues. Exact calculations vary by lending partner and program.
In this example, the property generates $1.25 in eligible rent for every $1.00 of monthly housing expense.
- 1.25 DSCR: Rent is 25% higher than PITIA.
- 1.00 DSCR: Rent equals PITIA.
- Below 1.00: Rent is lower than PITIA. Some programs may still be available, typically with different leverage, pricing, reserve, or credit requirements.
What Types of Deals May Qualify?
Program availability varies, but our network may include options for:
Property Types
- Single-family rentals
- Townhomes and warrantable condos
- Two-to-four-unit properties
- Five-to-ten-unit multifamily properties
- Mixed-use properties
- Short-term and mid-term rentals
- Multiple properties in a portfolio loan
Investor Profiles
- First-time rental investors
- Experienced landlords
- Self-employed borrowers
- BRRRR investors
- Investors holding title in an LLC or other eligible entity `[VERIFY]`
- U.S. citizens, permanent residents, and eligible foreign nationals `[VERIFY]`
Not a fit: Owner-occupied homes and primary residences.
Why Investors Work With REI HML
More Than a Quote. A Financing Desk for Your Rental Business.
More Lending Options
Different properties and investor profiles require different capital. We help find where the deal fits instead of forcing it into a single program.
Clear Deal Economics
Rate matters—but so do points, leverage, payment, cash to close, and prepayment terms. We help you look at the complete structure.
Investor-Fluent Guidance
We understand purchases, refinances, cash-out, BRRRR, rental cash flow, and portfolio growth. You do not need to translate the deal into mortgage jargon.
One Point of Contact
Stop repeating the same scenario to multiple lenders. Your REI HML specialist helps coordinate the financing from quote through closing.
Built for the Next Deal
We are not trying to finance one property and disappear. Our goal is to become the financing desk you call whenever the next opportunity appears.
We Lend in 47 States*
We lend nation wide in 47 states.
We don't lend in North Dakota, South Dakota, & Alaska.
FAQ
DSCR Questions, Answered
What does DSCR stand for?
DSCR stands for Debt Service Coverage Ratio. It compares a property's eligible rental income with its required monthly debt obligation or housing expense. For many residential programs, that expense is PITIA: principal, interest, taxes, insurance, and association dues.
Do I need W-2s, pay stubs, or personal tax returns?
DSCR programs generally qualify the investment property using its rental cash flow rather than the borrower's personal income. W-2s, pay stubs, and personal tax returns are generally not used to calculate a personal debt-to-income ratio. Asset, credit, entity, property, and other loan documentation will still be required.
What DSCR do I need to qualify?
There is no single ratio for every program. A DSCR of 1.00 means eligible rent equals the monthly housing expense. Stronger ratios may receive more favorable options, while certain programs may accommodate a ratio below 1.00 or no minimum ratio with different pricing, leverage, credit, or reserve requirements.
Can I qualify if the property is vacant?
Yes, depending on the loan purpose and program, a lender may use appraiser-supported market rent when an eligible lease is not available. Vacancy and rent documentation rules vary by lending partner.
Can I use a DSCR loan for an Airbnb or short-term rental?
Some programs allow short-term rentals. The lender may consider market rent, operating history, a short-term-rental analysis, or other program-specific documentation. Eligibility can depend on the property, market, and investor profile `[VERIFY]`.
Can I use a DSCR loan for a cash-out refinance?
Yes, cash-out programs may allow qualified investors to access equity in a rental property. Maximum leverage, ownership seasoning, value seasoning, and permitted use of proceeds vary by program
Can a first-time investor get a DSCR loan?
Some programs accept first-time investors, while others require rental ownership, property-management, rehab, or real estate investing experience. Access to multiple programs helps us look for an option aligned with your profile.
What credit score is required?
Minimum credit score is 620. Credit score also affects rate, leverage, reserves, and available structures. Share your estimated credit range in the quote request so we can evaluate programs that may fit without promising approval.
Is there a prepayment penalty?
Many DSCR programs include a prepayment penalty, often with multiple structures available, from no prepayment option up to 5-years. The specific term can materially affect the economics if you expect to sell or refinance early, so we show it alongside the rate, points, payment, and cash to close.
How long does a DSCR loan take to close?
Average closing time is 21 days. Timing depends on the appraisal, title, insurance, property documentation, and borrower documentation. After reviewing your deal and deadline, we can outline the likely process and expected timeline
Can I finance more than one rental property?
Yes. DSCR financing is designed for investment properties and may be used repeatedly, subject to each program's borrower, credit, liquidity, property, and exposure limits. Portfolio or blanket structures may also be available.
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Find out what financing options may be available before you commit more time and more capital to your deal.
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