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DSCR Rental Loans

Overview

 

DSCR (Debt Service Coverage Ratio) loans are long-term investment property financing that qualifies based on the property’s rental income—not your personal income or tax returns. These loans are purpose-built for real estate investors who want to grow a rental portfolio without the constraints of conventional underwriting. OpenLane Funding connects you with top-tier DSCR lenders offering competitive 30-year fixed rates, ARM options, and interest-only structures.

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Who This Is For

Buy-and-hold rental property investors building long-term wealth

  • Self-employed investors and business owners who don’t show high W-2 income

  • Investors purchasing stabilized rental properties (single-family through small multifamily)

  • BRRRR investors refinancing out of a bridge loan into permanent financing

  • Short-term rental (Airbnb/VRBO) operators looking to finance properties based on projected income

Loan Specifications

Specification

Details

Rates

5.75% – 12.75% (best rates at 750+ FICO, DSCR 1.25+, LTV ≤75%)

LTV

Up to 85% LTV (75% more common for best pricing)

Min Credit Score

600–680 typical; some programs at 600; no-ratio programs available

Loan Amounts

Term Options

Closing Timeline

$55,000 – $5,000,000+

30-year fixed (Most Common), 5/6 ARM, 7/6 ARM, interest-only options available

14–30 days

Property Types

Single-family, condo, townhome, 2–4 unit, warrantable condos

DSCR Requirement

Typically 1.0–1.25 minimum (no-ratio and sub-1.0 programs available)

Income Docs

None required — qualification based on property cash flow

Vesting

Individual, LLC, corporation, or trust

How It Works

  1. Submit Your Deal — Provide the property address, purchase price or estimated value, and current or projected rental income. We’ll analyze the DSCR ratio.

  2. DSCR Calculation — We divide the monthly rental income by the total monthly debt (PITIA: principal, interest, taxes, insurance, and association dues). A DSCR of 1.0 means break-even; 1.25+ unlocks the best pricing.

  3. Lender Matching — We match your deal to the best lender in our network based on your DSCR, credit score, LTV, and property type.

  4. Underwriting & Appraisal — An appraisal is ordered (including rent schedule or Form 1007). Underwriting is straightforward since there’s no income verification.

  5. Close & Fund — Most DSCR loans close in 14–30 days. You walk away with a long-term fixed or adjustable rate loan with no personal income documentation on file.

 

Key Benefits

  • No income verification, no tax returns, no employment check — the property qualifies, not you

  • 30-year fixed rates available starting in the mid-5% range for well-qualified borrowers

  • Close in an LLC, corporation, or trust for asset protection

  • Interest-only options available to maximize cash flow in the early years

  • Unlimited properties — no cap on the number of DSCR loans in your portfolio

 

Common Questions

Q: What is a DSCR loan?

A DSCR loan is an investment property mortgage where qualification is based on the property’s rental income relative to its debt obligations—not on the borrower’s personal income, tax returns, or employment. The Debt Service Coverage Ratio (DSCR) is calculated by dividing the property’s gross monthly rent by the total monthly payment (including principal, interest, taxes, insurance, and HOA). A DSCR of 1.25 means the property generates 25% more income than its debt.

 

Q: Can I use short-term rental (Airbnb/VRBO) income?

Yes. Many DSCR lenders accept projected short-term rental income, typically verified through platforms like AirDNA, Rabbu, or a 12-month Airbnb earnings history. STR-qualified loans may require slightly higher DSCR ratios or lower LTV, but they’re widely available. We’ll match you with lenders who specialize in STR financing.

 

Q: What if my DSCR is below 1.0?

Some lenders offer no-ratio or sub-1.0 DSCR programs for properties that don’t break even yet—but you’ll typically need a higher credit score (700+), lower LTV (65–70%), and may pay a rate premium. This is common with value-add properties or vacation homes. We have options.

 

Q: Can I close in my LLC’s name?

Absolutely. DSCR loans are specifically designed for investment properties held in LLCs, corporations, or trusts. Most lenders prefer entity vesting. You’ll sign a personal guarantee, but the loan and title vest in the entity.

 

Ready to get started? Submit your deal for a fast quote.

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