Loan sizes generally start around $100,000 and can reach $3.5 million (or about $2 million for 5–8-unit properties). Terms often stretch to 40 years, offering lower monthly payments and interest-only options in some cases.

🧾 What Lenders Look For

1. Credit history.
A mid-score of 660 or higher is usually required, but stronger credit unlocks better pricing and leverage.

2. Property cash flow.
The DSCR must show the property earns enough to cover its housing expense (PITI). A 1.00 ratio means it breaks even; most programs prefer 1.00 or greater.

3. Supporting documentation.
You’ll provide an application, a rent roll or leases, and an appraisal that includes a market-rent analysis. Short-term rentals can show income through bank statements or Airbnb/Vrbo statements instead of traditional leases.

4. Condition and title.
The property must appraise cleanly, meet zoning rules, and not be listed for sale while financing is in process.

🏢 Expanded Program Variants

• Standard DSCR Loan
For single-family, small multifamily, or vacation rentals. Straightforward 30- or 40-year terms, minimal documentation, and room for both long-term and short-term leases.

• Blanket DSCR Loan
Covers multiple properties under one mortgage — sometimes up to 20–25 doors. Investors can sell individual properties later without paying off the entire loan if a partial-release clause is included.

• 5-to-8-Unit DSCR
Targets small apartment buildings, with loan sizes up to about $2 million and LTVs typically capped near 75%.

• Mixed-Use DSCR

For properties that blend residential living with small storefront or office space, provided residential income is the majority driver.

⚖️ Adjustments & Exceptions

Lenders may reduce LTV by 5 % or more for properties in declining markets or with heavy commercial use.
Short-term rentals often have projected income discounted 15–25 % to account for vacancies and management costs.
Reserves of 3–12 months of payments are common for risk mitigation.

🧩 Quick Qualification Checklist

✅ FICO 660 +
✅ Property DSCR ≥ 1.00 x
✅ Verified lease or rental-income documentation
✅ Current appraisal with rent schedule
✅ Title clear of liens or lawsuits
✅ LLC or entity documents (if applicable)

💡 Why Investors Love DSCR Loans

DSCR financing strips away unnecessary red tape and focuses on what truly matters: Does the property pay for itself?

With no personal income verification, flexible terms, and the ability to close in an LLC, investors gain freedom to scale their portfolios faster and with less friction.

Whether you’re pulling cash out of a profitable rental, refinancing into a longer term, or adding another Airbnb to your portfolio, a DSCR loan gives you the leverage to keep building wealth on your terms.