Investor Finance

DSCR Loans
for Rental Property

Know if the deal works before you spend money.

Qualify on rent, not tax returns.

Review My DealTalk to a specialist
Availability varies by state1 business day responseNo credit pull at this stage1–4 units to small multifamily
The Short Answer

A DSCR loan finances a rental on the property's rent, not your income. For 1-4 units, most programs divide monthly rent by PITIA. Minimums vary by lender. Stonehaven is a mortgage brokerage: we review the deal and arrange the loan.

eligible monthly rent ÷ monthly PITIA = residential DSCR
Commercial: NOI ÷ annual debt service.
Calculate My DSCRRequest a Deal Review
Start with the essentials

Bring the property, rent, and financing goal

For your first review, have the property location, purchase price or estimated value, monthly rent, and requested loan amount ready. For a refinance, include the mortgage balance and any prepayment penalty you know about.

We use those details to discuss potential financing paths and the information needed next. A preliminary review is not an approval or a commitment to lend.

Request a rental-property review · Estimate your DSCR first

In Plain Language

Rent versus payment. If the property covers itself, qualified investors may finance it without employment-income files.

Investment property only. Not for owner-occupied homes.

Why Stonehaven

We evaluate the deal

i

Property first

Rent, taxes, insurance, leverage first.

ii

Structure matched to the exit

Purchase, refinance, cash-out, BRRRR or portfolio.

iii

Full cost, not one line

Points, fees, escrows, reserves and prepayment terms.

iv

Risks found early

Low rent appraisals, tax jumps, seasoning, STR rules.

v

Investor view

A loan can pass the formula and still be a weak investment. We tell you.

Run the Numbers

Two views of every deal

Lender DSCR: gross rent against the full payment. Investor cash flow: what's left after vacancy, management and reserves. We show both.

Analyze my property

Interactive analysis - estimates for educational and preliminary scenario-review purposes only. Not an approval, commitment, rate quote or guarantee.

Sensitivity

One property, nine outcomes

$400,000 property, $300,000 loan, $3,000 rent, $600/mo taxes and insurance, 7.25% illustrative, 30-year amortization.

ScenarioPayment (PITIA)DSCR
Base case$2,647/mo1.13x
Rate improves to 6.75%$2,546/mo1.18x
Rate rises to 7.75%$2,749/mo1.09x
Loan reduced to $280,000$2,510/mo1.20x
Loan increased to $320,000$2,783/mo1.08x
Rent appraises at $2,800$2,647/mo1.06x
Rent appraises at $3,200$2,647/mo1.21x
Taxes + insurance up $150/mo$2,797/mo1.07x
Interest-only qualification$2,412/mo1.24x

Illustrative only. Not a current offer. All figures computed at the stated assumptions; actual rates, rent treatment and program thresholds vary.

Who It May Fit

Built for working investors

i

Portfolio scaler

Adding doors without income limits.

ii

Self-employed

Tax returns understate capacity.

iii

LLC buyer

Entity vesting is common.

iv

BRRRR investor

Takeout after rehab.

v

Short-term rental

Some programs count STR income.

vi

Cash-out

Equity from a performing rental.

vii

At conventional limits

DTI or property-count caps.

viii

Going to 5+ units

Compare financing for five to eight units and larger multifamily options.

"May fit" is deliberate - eligibility depends on the property, documentation, valuation and program requirements.

Candidly

When DSCR isn't the answer

Skip DSCR when you qualify for cheaper conventional financing, real cash flow is weak, a prepay penalty conflicts with your exit, the property needs major rehab, you'll live there, or reserves fall short.

If that's your deal, we'll say so and show the alternative.

Compare my options
Scenario Paths

Purchase, refinance, portfolio

Purchase

  • iFinance the rental on its own income.
  • iiRent vs. payment before you offer.
  • iiiCash to close.
  • ivAppraisal risk up front.

Rate-and-term refinance

  • iA better structure.
  • iiPayment and total cost.
  • iiiCurrent prepayment terms.
  • ivBreak-even.

Cash-out refinance

  • iEquity from a performing rental.
  • iiNet proceeds after costs.
  • iiiLeverage limits, seasoning, reserves.
  • ivCompare with a second lien.

BRRRR takeout

  • iTitle and value seasoning.
  • iiRehab and stabilized rent.
  • iiiCash-out limits at new value.
  • ivStructure for the next purchase.

Portfolio

  • iAll properties together.
  • iiMaturities and prepay windows.
  • iiiSingle loans vs. one portfolio loan.
  • ivPlan buys and sales around the debt.
Eligible Assets

Property types

Single-family rentalsResidential DSCR
Townhomes & PUDsResidential DSCR
Eligible condominiumsResidential DSCR
2–4 unit propertiesResidential DSCR
Short-term rentalsSelect programs
5+ units & mixed-useCommercial programs
Larger multifamilyCommercial

Property and program eligibility varies. Some property types require different commercial financing rather than a residential DSCR loan.

The Landscape

DSCR versus other financing

OptionUnderwritingTypical propertyEntity vestingDocumentationBest usePrimary tradeoff
ConventionalIncome & DTI1–4 unitIndividualFull incomeCheapest if you qualifyDTI, property caps
Residential DSCRRent vs payment1–4 unitIndividual or LLCPropertyScalingCost, prepay
Local bankRelationshipVariesFlexibleBank-specificLocal flexibilityGeography, capacity
Bridge / hard moneyAsset & exitRehabLLCLightSpeedCost, short term
Commercial multifamilyNOI, debt yield5+ unitsEntityOperating statementsLarger assetsRecourse, balloons
HELOC / second lienEquity & creditExistingVariesModerateKeeps first lienAvailability

Qualitative comparison for orientation - rates, timelines and availability vary by lender, program and market and are deliberately not shown.

Total Economics

The real cost

Points, fees, escrows, reserves, prepayment penalty, payment shock, net proceeds. Two similar quotes can be thousands apart.

We line up the full stack.

Compare full cost
Know Your Exit

Prepayment penalties

Most DSCR loans carry a step-down prepayment penalty. If you may sell or refinance early, it belongs in today's math. Our explainer models it against your exit.

Model my exit
The Platform

Growing beyond 1–4 units?

At five or more units or mixed-use, underwriting shifts to NOI and debt yield, with recourse and balloon risk.

See commercial financing and commercial deal review. One desk, first rental to first commercial asset.

How It Works

From property to closing

i

Submit the property

Core facts. No credit pull.

ii

Preliminary review

Estimated ratio, range and risks.

iii

Compare structures

Leverage, prepay and cost vs. your exit.

iv

Documents

A short checklist.

v

Underwriting & valuation

Appraisal, rent, title, entity.

vi

Close

Fund it. Plan the next one.

Be Ready

What you'll typically need

Borrower / entity documents

ID and credit authorization; LLC formation documents, operating agreement, EIN and good standing; asset statements; schedule of real estate owned. Varies by lender.

Property / transaction documents

Purchase contract or mortgage statement; leases or STR platform statements; insurance; HOA dues; tax bill; payoff; rehab documentation for BRRRR. Varies by lender.

Find Your Situation

Start where your deal actually is

Seventeen focused guides: pick the financing event first, then the situation that shapes it.

By financing need

The rehab is finished. Review the financing for the hold

Replace maturing bridge or hard-money debt with a rental takeout.

The refinance deserves a plan of its own

Plan the refinance stage across the whole BRRRR sequence.

Before the next purchase, review the equity math

Weigh equity proceeds against what the refinance changes.

A new rental loan should earn its place

Decide whether replacing the current loan earns its costs.

Bought with cash? Review what comes next

Return leverage to a property bought with cash.

Match the financing to the hold plan

Price the hold branch honestly against a sale.

By investor situation

The next rental deserves its own financing review

Compare financing for the next acquisition, sensitivity first.

First rental? Start with the numbers

The definitions, cash needs and rules a first rental brings.

Start the rental-loan conversation with the property

Property-based underwriting against personal-income paths.

Another rental starts with a clear deal review

Organize the decision around a full-time job.

A different market. The same need for clear numbers

Local numbers, lender DSCR and owner cash flow, kept straight.

More properties call for another financing comparison

When one-off loans give way to portfolio or commercial structures.

Review the lease. Then review the loan

Lease evidence, eligible rent and the costs outside the ratio.

An STR forecast needs a financing reality check

Legal use, documented income and program fit for STRs.

Review the property and the ownership structure

Entity vesting, documents and guarantor questions.

Several rents. One financing decision

Rent rolls, unit legality and small multifamily files.

For veterans exploring a rental investment: start with the deal

The accurate VA-versus-investment-financing distinction.

Deal Risks

What can break a DSCR deal?

i

Rent appraises low

The appraiser's number controls.

ii

Taxes & insurance jump

PITIA moves fast.

iii

Condition & eligibility

Deferred maintenance, ineligible types.

iv

Title & seasoning

Recent transfers, short ownership.

v

Illegal units & STR rules

Unpermitted space, rental bans.

vi

Entity-document gaps

Missing agreements, bad standing.

vii

Reserves & credit events

Thin liquidity, recent lates.

viii

Value, occupancy & location

Low appraisals, rural or unique assets.

Identify my risks early
Questions

Frequently asked questions

What is a DSCR loan?

Rental financing qualified on the property's rent, not your income. Investment property only.

How is residential DSCR calculated?

Gross monthly rent divided by PITIA. $3,000 rent against a $2,647 payment is 1.13x. Methods vary by program.

Does passing DSCR mean the property is profitable?

No. The formula ignores vacancy, management, maintenance and reserves. We show the investor view too.

Are tax returns required?

Usually not for income. ID, entity documents, assets, leases and insurance still are. It is not a no-doc loan.

Is credit reviewed?

Yes. Score affects eligibility and maximum leverage.

Can an LLC obtain the loan?

Yes, and it's common. Most programs still require a personal guaranty from the members.

Are short-term rentals eligible?

Some programs count documented STR income and may require proof the use is legal. Varies.

Can a DSCR loan finance five or more units?

Five-plus units moves to commercial programs. We arrange both. See commercial financing.

What is a prepayment penalty?

A charge for paying off early, often a step-down over the first years. Weigh it against your exit.

What happens if the appraiser's rent estimate is low?

The ratio drops. Options: lower leverage, interest-only qualification, better comparables, or re-scope.

Prepare your DSCR review

The program calculator compares financing assumptions; the analyzer helps explore rental coverage. Neither replaces a lender review.

Request a DSCR review

The Deal Review

Bring us the property

Submit your scenario. We'll review the property, the request and the risks, then recommend a next step.

Review My DealTalk to a specialist

Preliminary scenario review - not an approval, commitment or rate quote. Prefer the 60-second version? Run the quick analyzer.

DSCR financing guides and examples

Explore how rental income is evaluated, model a scenario and review a past closing. Each loan remains subject to underwriting and lender requirements.

Prepare the next decision

Complete the cash plan with our guide to DSCR reserves and cash to close. Compare DSCR prepayment terms with your intended sale or refinance date, too.

Our first DSCR loan guide separates qualifying rent from real cash flow and explains what to prepare as a new landlord. It includes a refinance example with less cash available than expected.

Does the property have five to eight units? Our 5–8 unit financing guide explains how to review rents, operating expenses and legal unit count before choosing a route. Calculator assumptions do not confirm eligibility for a program.

If you already own a rental without a mortgage, the DSCR HELOC scenario for a paid-off rental property shows what to gather for a line intended for future investments. It is an educational example that distinguishes rental cash flow from personal debt-to-income qualification, not a closing or approval.

If you can also document personal income, the DSCR versus conventional guide separates borrower qualification from property cash flow before you choose a financing route.

DSCR guides by state

Rent alone does not determine the budget. Open a region and choose the state guide to check property records, taxes and carrying costs before calculating DSCR. Stonehaven is a mortgage brokerage arranging DSCR financing nationwide; availability varies by state.

Northeast
Midwest
South
West
Speak With Us

Talk to us

Call, email, or send your scenario. We answer within one business day.

(470) 970-4979
office@stonehavencre.com
Lending nationwide
Review My Deal