DSCR Loans with LoanFunders.com: Close More Rentals with Cash-Flow–First Financing

If you’re building a rental portfolio, Debt Service Coverage Ratio (DSCR) loans let the property’s cash flow—not W-2s—do the heavy lifting. Our DSCR program is designed for 1–8 unit residential investors who want simple docs, flexible terms, and clear underwriting.

Quick Program Snapshot

  • Property types: 1–8 units (SFR, 2–8 unit small multifamily)

  • Min FICO: 660 (recommended 680+)

  • Min DSCR: 0.80 (recommended 1.15 for best pricing & smoother approvals)

  • Max LTV: up to 80% (single-family), 75% (2–8 units)

  • Foreign Nationals: max 65% LTV

  • Rates: start at 5.88%

  • Rate options: 30-yr fixed, 5/1 & 7/1 ARM, Interest-Only (up to 10 yrs I/O)

  • Minimum loan amount: $100,000 (100k per unit guidance for multi-units)

How DSCR Works (Plain English)

DSCR = Monthly Rent ÷ Monthly Payment (PITIA)

  • PITIA = Principal + Interest + Taxes + Insurance + HOA (if any).

  • 1.00 DSCR means the rent exactly covers the payment.

  • We can go down to 0.80 DSCR (tighter leverage/pricing), but you’ll get the most efficient execution at 1.15+.

Quick math examples

  • If your total monthly payment (PITIA) is $2,000:

    • Minimum to qualify at 0.80 DSCR: $1,600 rent

    • Recommended at 1.15 DSCR: $2,300 rent

  • For a 4-unit where PITIA totals $5,500:

    • Minimum at 0.80 DSCR: $4,400 gross rents

    • Recommended at 1.15 DSCR: $6,325 gross rents

Leverage & Terms (What to Expect)

  • Single-Family (1-unit): up to 80% LTV at strong DSCR and credit tiers.

  • 2–8 Units: up to 75% LTV, with DSCR and FICO driving best-case pricing.

  • Foreign Nationals: up to 65% LTV; same DSCR logic applies.

  • Fixed or ARM: Lock long-term cash flow with a 30-year fixed or choose 5/1 or 7/1 ARM for initial payment efficiency.

  • Interest-Only (I/O): Take up to 10 years of I/O to maximize monthly cash flow during rehabs, lease-ups, or cap-ex plans.

Who This Program Fits

  • Buy & Hold investors scaling SFR or small-multi portfolios.

  • BRRRR operators who’ve stabilized and want permanent debt.

  • Out-of-state owners who value streamlined documentation.

  • Foreign Nationals investing in U.S. residential rentals.

How to Strengthen Your File (and Potentially Your Pricing)

  • Target 1.15+ DSCR: Consider minor rent bumps (at renewal) or tax/insurance shopping to improve DSCR.

  • Credit polish: Aim for 680+ FICO to unlock better tiers.

  • Right-size leverage: Choose LTV that keeps DSCR healthy with today’s rates (starting at 5.88%).

  • Document cleanly: Current lease(s), insurance quote, tax bill, HOA (if any), and a simple REO schedule speed things up.

Fast FAQs

Q: Can I qualify if my DSCR is under 1.00?
A: Yes—minimum is 0.80 DSCR with adjusted terms. For best results and pricing, 1.15+ is preferred.

Q: What if I’m buying a 6-unit?
A: Max 75% LTV applies for 2–8 units. Keep total gross rents high enough to meet your target DSCR.

Q: Do you offer long-term fixed rates?
A: Yes—30-year fixed options are available, as well as 5/1 & 7/1 ARMs and I/O up to 10 years.

Q: Foreign National here—what’s my cap?
A: 65% LTV maximum, with the same DSCR framework.

Next Steps

  • Buying or refinancing? Send the address, rents (or market rent expectations), taxes/insurance, and your target LTV.

  • Want numbers first? Ask for a soft quote—we’ll show you DSCR, payment scenarios (fixed vs. ARM vs. I/O), and max leverage based on your credit tier.

Ready to run your deal? Reply to this newsletter with your property details or upload your loan scenario on loanfunders.com/wp/ to get started.

Disclaimer: Program terms, guidelines, and pricing are subject to change without notice and may vary by scenario. This is not a commitment to lend. All loans subject to underwriting and applicable regulations.