For real estate investors, cash flow is king—and securing the right financing can make or break an opportunity. Traditional mortgage options often don’t fit the needs of property investors, especially those looking to expand their portfolio or invest in non-traditional properties.
That’s where Debt-Service Coverage Ratio (DSCR) loans come in. Unlike conventional financing, DSCR loans allow investors to qualify based on a property’s cash flow rather than their personal income, making them a game-changer for real estate investors.
At LendSure Home Loans, our DSCR loan program is designed to help investors scale their portfolios with ease and flexibility. Whether you’re purchasing a single-family rental, a 5-10 unit multifamily property, or a condotel, our DSCR loans provide high loan limits, flexible terms, and no property ownership limits—allowing investors to keep growing without roadblocks.
What is a DSCR Loan?
A DSCR loan is a property-based loan that allows real estate investors to qualify based on rental income rather than personal financials. Unlike traditional mortgages, which require tax returns, W-2s, and personal debt-to-income (DTI) calculations, DSCR loans focus on the property’s ability to generate enough rental income to cover the loan payments.
Why Does This Matter for Investors?
- No personal income verification required – Ideal for self-employed investors and those with multiple properties.
- Focuses on property cash flow – If the rental income covers the mortgage, you can qualify.
- No cap on properties owned – Unlike conforming loans, investors can finance up to 10 properties per borrower.
DSCR loans provide an efficient and scalable way to expand a real estate portfolio without being limited by personal income documentation requirements. If an investment property’s rental income covers the mortgage payments, an investor can qualify. This is particularly beneficial for self-employed borrowers, seasoned investors, and those looking to secure multiple properties at once.
LendSure’s DSCR Loan Program Highlights
LendSure’s investor-friendly DSCR loans offer flexible financing solutions for a range of property types, helping investors secure funding with fewer restrictions.
1-4 Unit Properties
- Loan amounts up to $3,000,000
- Cash-out up to $500,000
- Up to 85% LTV for purchases
- Up to 75% LTV for rate & term or cash-out refinancing
- Minimum Credit Score: 660
5-10 Unit Properties
- Loan amounts up to $2,000,000
- Cash-out up to $500,000
- Up to 75% LTV for purchases
- Up to 75% LTV for rate & term refinances
- Up to 65% LTV for cash-out refinances
- Minimum Credit Score: 700
Additional Benefits:
- Close multiple loans simultaneously for the same investor.
- No limit on the number of properties owned.
- Condotels & non-warrantable condos allowed (up to 75% LTV).
- Interest-only payment options are available for cash flow flexibility.
- Rate buydown features to optimize long-term profitability.
How DSCR Loans Work: A Smarter Way to Finance Rentals
Understanding DSCR) is key to determining eligibility for these loans. The DSCR formula is straightforward:
DSCR = Monthly Net Operating Income (NOI) ÷ Total Monthly Debt Payments (Mortgage, Taxes, Insurance, HOA, etc.)
For example, if an investor is purchasing a six-unit property that generates $11,000 in net rental income and the total monthly loan payment is $10,000, the DSCR would be:
$11,000 ÷ $10,000 = 1.1 DSCR
Flexible Qualification Options:
- For 5-10 unit properties, the minimum DSCR is 1.1, which is lower than most commercial lending requirements.
- For 1-4 unit properties, a DSCR above 1.0 may be considered, offering more opportunities for financing.
- Market rents considered – Unlike some lenders that only count currently rented units, LendSure factors in market rents, ensuring investors aren’t penalized for temporary vacancies.
To make the process even easier, investors can use LendDSCR, LendSure’s loan pricing tool, to estimate loan pricing in real time based on their investment scenario.
Who Can Benefit from a DSCR Loan?
DSCR loans are an excellent solution for a variety of real estate investors:
- Seasoned investors looking to expand their portfolio quickly.
- Self-employed borrowers who may not have traditional income documentation.
- Investors looking to refinance & cash out to reinvest in new properties.
- Buyers of condotels, non-warrantable condos, and multifamily units who need flexible financing.
The LendSure Advantage: Why Investors Choose Us
At LendSure Home Loans, we specialize in investor-friendly lending solutions, offering:
- Fast Pre-Qualification – Get answers quickly so you can act fast in a competitive market.
- Expert Guidance – Work with lending specialists who understand real estate investment.
- Flexible Terms – With up to 85% LTV and interest-only options, we offer terms that work for your investment strategy.
- No Hidden Restrictions – No property limit caps, no excessive income verification, and loan amounts up to $3M.
What sets LendSure apart is our LendDSCR Loan Pricing Tool, which allows investors to calculate estimated loan pricing instantly, helping to make informed decisions with ease.
Get Started with a DSCR Loan Today
Investing in real estate shouldn’t be complicated. With LendSure’s DSCR Loan Program, investors can qualify based on cash flow, close multiple loans at once, and expand their portfolio with ease.
Why Choose LendSure Home Loans?
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers, ratios, and data to consider, but we know that behind every file, there’s an individual with unique circumstances seeking a loan.
We’re redefining the mortgage experience one loan at a time. Thanks to our common-sense approach and dedicated lending team, we often say ‘yes’ to today’s homeowners and investors.
Ready to explore how LendSure Home Loans’ can help you finance your next property? Contact us today.
