What is a DSCR loan?
DSCR stands for debt service coverage ratio: the property's rent divided by its monthly loan payment (principal, interest, taxes, insurance, and dues). DSCR lenders qualify the property, so you typically do not need to show personal tax returns. These loans are for investment property only. The borrower, guarantors, and their families may not live in the property.
DSCR loan terms at a glance
| Property types | 1 to 4 unit rentals, 5+ unit multifamily, short-term rentals, room-rental and co-living (lender dependent) |
| Purchase leverage | Up to 80% LTV with select lenders; lower for cash-out |
| Multifamily | Larger multifamily DSCR loans available with select lenders |
| Term | Long-term fixed options, including 30-year amortization; some 5-year structures |
| Borrower | Usually an LLC or other entity, with a personal guarantee |
| Where we serve | Illinois and Texas; other states by request |
What lenders look for
- Rent that covers the payment with room to spare. Many lenders want a DSCR around 1.25.
- Good credit and cash reserves after closing.
- A lease or market rent estimate, plus landlord insurance.
- Proof the property is an investment: the borrower's home address is different from the property.
Figures are general examples drawn from current lender programs, not an offer or commitment to lend. Actual terms are set by the lender and depend on the deal, the borrower, and underwriting.
How it works with US Funding
- Initial review. Tell us the deal and the numbers. You get a fast, honest read at no cost.
- Engagement. If we can help, we sign a short engagement letter and a business-purpose certification. No fee is due unless your loan closes.
- Strategy & placement. We match your file to the lenders most likely to approve it and compare the term sheets with you.
- Close. Documents, signatures, and funding, managed to the finish. Our fee, if any, is paid at closing through the closing statement.
FAQs
Can I live in the property?
No. DSCR loans arranged by US Funding are for investment property only. No borrower, guarantor, or family member may live in the property.
Do I need tax returns?
Most DSCR lenders qualify on the property cash flow and do not require personal tax returns, but they will check credit, reserves, and the lease or market rent.
Can I finance room-rental or co-living property?
Some lenders do. Tell us how the property is rented and we will match it to a lender that accepts that model.
Do you charge a fee up front?
No. Any fee to US Funding is paid only at closing, after you accept a binding lender commitment.
See if your rental qualifies
Start your application in minutes, or let our quick tool point you to the right program. No upfront fees to find out.