DSCR Loans | Rental Property Financing

$100K-$5M

Loan size

Up to 85%

LTV

Competitive

Rate

Up to 40 yrs

Term

No income docs

Income docs

1-10 units

Property types

All loans are subject to underwriting approval. Rates, terms, and loan amounts may vary based on property type, loan-to-value ratio, debt service coverage ratio, credit profile, and market conditions. Contact us for a customized quote.

Why Requity

Permanent financing from people who own rentals too

Most lenders treat rental property as a liability on your personal balance sheet. We treat it as a business. DSCR lending evaluates each property on its own cash flow, which means your portfolio can grow without your personal income becoming the bottleneck.

No Income Verification

Qualification is based entirely on the property's debt service coverage ratio. No tax returns, no W-2s, no paystubs. Self-employed borrowers, investors with complex income structures, and high-net-worth individuals all qualify the same way: does the property cash flow?

Bridge-to-DSCR Pipeline

Many rental investors start with a short-term bridge loan to acquire and stabilize a property, then refinance into a long-term DSCR loan once leases are in place. We lend on both ends of that pipeline, which means we understand your business plan and can structure both loans together.

Built for Portfolio Scale

Each DSCR loan is underwritten on the property's cash flow, not your aggregate personal income. That means you can hold 10, 20, or 50 properties without hitting a debt-to-income wall. We also offer blanket and portfolio loan structures for investors ready to cross-collateralize.

Use Cases

How rental investors use DSCR financing

From single-family rentals to small multifamily, from BRRRR exits to short-term rental portfolios, DSCR loans cover the full range of residential investment property strategies. No personal income required at any stage.

Stabilized Rentals

Permanent financing for single-family rentals and small multifamily properties with existing tenants and documented lease income. If the rent covers the debt service, you qualify. Straightforward DSCR calculation, no income documentation required.

BRRRR Exit

Complete your Buy, Rehab, Rent, Refinance, Repeat strategy with a 30-year DSCR loan on the back end. Once your property is rehabbed and rented, refinance out of your bridge or hard money loan into permanent debt. Pull your equity out and move on to the next deal.

Portfolio Refi

Consolidate multiple single-family rentals into a portfolio loan structure. Simplify your debt stack, reduce your number of lenders, and potentially improve your overall rate. Portfolio loans are evaluated on aggregate DSCR across all properties in the pool.

Short-Term Rentals

Finance Airbnb, VRBO, and other short-term rental properties using market rent or trailing 12-month STR income to calculate DSCR. Markets with strong short-term rental demand often support higher rents than long-term leases, resulting in favorable DSCR even at higher loan amounts.

Small Multifamily 5-8

5-8 unit properties sit in a lending gap: too large for residential programs, too small for most commercial lenders. Our DSCR program covers this asset class. Underwriting is based on the property's net operating income and debt service, just like larger commercial deals.

New Purchase with Lease

Purchasing a rental property with an existing tenant and lease in place? DSCR financing is available at acquisition using the current lease rent as the income figure. No seasoning requirement on the lease. Close with long-term financing from day one.

Vacant Properties

No tenant required. Vacant properties can qualify using market rent from a licensed appraiser. The appraiser's opinion of market rent is used to calculate DSCR in place of an active lease, so you can close DSCR financing on a vacant property without waiting for a tenant in place.

FAQ

DSCR rental lending FAQ

What is a DSCR loan?

A DSCR (Debt Service Coverage Ratio) loan qualifies borrowers based on the rental property's cash flow rather than the borrower's personal income. The DSCR is calculated by dividing the property's gross monthly rent by the monthly debt service (principal, interest, taxes, insurance, and HOA if applicable). A DSCR of 1.0 means the property exactly covers its debt service. Most lenders require a minimum DSCR of 1.0 to 1.25.

Do I need to show tax returns or W-2s for a DSCR loan?

No. DSCR loans require no personal income documentation. There are no tax returns, W-2s, paystubs, or debt-to-income ratio calculations. Qualification is based entirely on the property's rental income relative to its debt service. This makes DSCR loans particularly attractive for self-employed investors, retirees, and anyone with complex income structures.

What DSCR ratio is required to qualify?

We generally require a minimum DSCR of 1.0, meaning the property's rent must at least cover the full monthly debt service. Higher DSCR ratios (1.20 and above) typically unlock better rates and higher LTV. Properties with DSCR below 1.0 may still be eligible under certain programs with compensating factors such as a lower LTV or strong borrower credit.

What property types are eligible for DSCR financing?

Eligible property types include single-family rentals (1-4 units), small multifamily (5-8 units), condominiums, townhomes, and short-term rental properties. The property must be a non-owner-occupied investment property. Primary residences and owner-occupied duplexes are not eligible for DSCR programs.

How is DSCR calculated for short-term rentals?

For short-term rental properties (Airbnb, VRBO), we can calculate DSCR using either the market long-term rent for the property or the trailing 12-month gross STR income, depending on which better reflects the property's cash flow. Markets with strong vacation or business travel demand often support STR income that exceeds long-term lease rates.

Can I use a DSCR loan to refinance an existing rental?

Yes. DSCR loans are available for both purchases and refinances, including rate-and-term refinances and cash-out refinances. Cash-out refinances allow you to pull equity from a stabilized rental property for reinvestment, reserves, or other purposes. Maximum cash-out LTV is typically 75-85% depending on the property type and DSCR.

What prepayment penalty structures are available on DSCR loans?

Prepayment penalty structures range from 12 to 60 months with fixed and step-down options available. A fixed prepayment penalty charges the same percentage throughout the penalty period. A step-down structure reduces the penalty percentage each year, making it easier to exit the loan if your hold period is flexible. The structure you select at origination typically affects your rate, with longer prepayment terms often corresponding to lower rates.

Are interest-only payment options available on DSCR loans?

Yes. 10-year interest-only payment options are available on select programs. An interest-only period reduces your monthly payment during the IO term, which can improve cash-on-cash returns and DSCR for properties with tighter margins. After the IO period ends, the loan amortizes for the remaining term.

Rental property financing

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