Rental Property Loans (DSCR)
DSCR rental property loans qualify on the property's rental income — not your personal tax returns. Build and scale your rental portfolio with 30-year fixed terms, no income documentation, and financing for 1–10+ unit residential investment properties.
About Rental Property Loans
DSCR (Debt Service Coverage Ratio) rental property loans are the gold standard for real estate investors building long-term portfolios. Instead of documenting personal income via tax returns or W-2s, these loans qualify based solely on whether the property’s rental income covers the monthly mortgage payment (DSCR = Rent ÷ PITIA). Available for 1–10+ unit residential investments with 30-year fixed-rate amortization — ideal for buy-and-hold investors.
Key Features & Benefits
Everything you need to know about what makes Rental Property financing a smart choice.
No Tax Returns Required
Qualify on rental income alone — no W-2s, pay stubs, or personal tax returns required.
30-Year Fixed Terms
Fully amortizing 30-year fixed rate loans provide long-term cash flow predictability.
Up to 80% LTV
20% down acquisitions (purchase) or up to 75% LTV cash-out refinance.
Unlimited Properties
No cap on the number of investment properties you can finance — scale your portfolio.
LLC/Entity Vesting
Close in an LLC or Series LLC for asset protection and portfolio organization.
Interest-Only Option
Optional 10-year I/O period reduces monthly payment and maximizes cash flow.
Who Uses Rental Property Financing
- Purchasing single-family rental properties
- Financing 2–4 unit and small multi-family properties
- BRRRR strategy refinance (Buy, Rehab, Rent, Refinance, Repeat)
- Cash-out refinance to fund next acquisition
- Portfolio refinance to lower blended rate
- Short-term rental / vacation rental financing (Airbnb/VRBO)
Qualifications & Eligibility
- Non-owner-occupied 1–10 unit residential investment property
- DSCR of 1.0x or higher (some programs as low as 0.75x)
- Credit score of 660+ (680+ for best pricing)
- Minimum 20% down payment on purchase (25% preferred)
- Liquid reserves of 6 months PITIA
- Property generating or capable of market rent
How It Works
Our streamlined process gets you from application to funding quickly.
Pre-Qualification
Provide rent roll or market rent estimate, purchase price, and credit score — no tax returns needed.
Appraisal
Lender orders appraisal with Form 1007 (rent survey) to validate market rent.
DSCR Calculation
DSCR calculated as Rent ÷ (Principal + Interest + Taxes + Insurance + Association dues).
Loan Decision
Approval based on property DSCR, borrower credit, and reserves — typically 10–15 days.
Funding
Close in an LLC or personal name; funding typically in 21–30 days total.
Why Choose Growth Fund Partners for Rental Property
Frequently Asked Questions
Common questions about Rental Property loans answered.
How is DSCR calculated?
DSCR = Monthly Rental Income ÷ Monthly PITIA (Principal, Interest, Taxes, Insurance, Association dues). A DSCR of 1.25 means rent covers 125% of the debt service.
Can I use market rent if the property is vacant?
Yes — market rent from an appraiser\u2019s Form 1007 rent survey is accepted for vacant or recently purchased properties.
Are short-term rental (Airbnb) properties eligible?
Yes, many DSCR lenders now accept short-term rental income, though some may use a haircut (e.g., 75% of STR income) for qualification.
What is the minimum DSCR I need?
Most programs require DSCR ≥ 1.0. Some programs allow 0.75–0.99 DSCR at higher rates with larger down payments.
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