DSCR Loan Finder
Explore financing options for rental properties based primarily on the property's rental income rather than traditional employment income.
Purchase • Refinance • Cash-Out • 1–4 Units • 5–10 Units
1–4 unit investment-property DSCR loans remain within the Loan Factory residential lending channel, separate from Loan Factory Commercial programs. Multifamily financing receives program-specific review based on the property and transaction.
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For educational purposes only. Results are based solely on the information provided and do not represent an approval, qualification determination, rate quote, or commitment to lend. Loan programs, rates, eligibility, property requirements, and underwriting guidelines are subject to change and require review of a complete loan application, property documentation, credit, and applicable underwriting guidelines.
Tell us about your investment property and financing goals so we can help identify suitable loan options.
Program Highlights
Program availability, terms, and leverage vary and are not guaranteed.
DSCR Loan FAQ
A DSCR (Debt-Service Coverage Ratio) loan is an investment-property loan where qualification is based primarily on the property's rental income compared to its monthly housing payment, rather than the borrower's personal employment income.
DSCR is the property's monthly gross rental income divided by its monthly PITIA — principal, interest, property taxes, insurance, and any HOA or other required property expenses. For example, $5,000 in rent ÷ $4,000 PITIA = 1.25 DSCR.
Many 1–4 unit DSCR programs look for a DSCR of about 1.00 or higher. 5–10 unit multifamily programs generally look for about 1.10 or higher. Requirements vary by program.
Some 1–4 unit programs may consider DSCRs as low as about 0.75, usually with a lower loan-to-value and other compensating factors. Availability varies.
Short-term rental programs may be available on certain 1–4 unit properties, often with lower maximum leverage. Short-term rentals are generally not eligible for 5–10 unit programs.
Cash-out refinancing may be available, typically at lower leverage than a purchase, and cash-out proceeds may be limited depending on the program.
Many DSCR programs allow the property to be held in an LLC or other business entity, usually with a personal guarantee from the individual owners.
Under certain DSCR programs, traditional employment income documentation and tax returns may not be required, because qualification is based primarily on the property's cash flow. Credit, assets, and property documentation are still reviewed.
5–10 unit programs generally have a higher minimum DSCR, higher minimum credit, lower maximum leverage, a minimum loan amount, and often require prior multifamily ownership experience.
Properties with 11 or more units generally fall under commercial multifamily financing rather than DSCR programs. Our Commercial Loan Finder can help identify options.