DSCR Rental Loans for Real Estate Investors
Use actual or projected rental income to qualify for financing on non-owner occupied investment properties.
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Nationwide DSCR rental loan programs for 1-10 unit residential investment properties, designed for real estate investors seeking scalable portfolio growth.
What Is a DSCR Rental Loan?
A DSCR (Debt Service Coverage Ratio) rental loan allows real estate investors to qualify for financing based on the property’s rental income rather than personal tax returns or W-2 documentation.
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Instead of evaluating employment income, DSCR loans analyze whether rental income sufficiently covers the proposed mortgage payment. If the property cash flow meets the required ratio, investors can qualify without traditional income verification.
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These loans are specifically designed for non-owner occupied investment properties and are ideal for portfolio landlords and investors seeking repeat transactions.
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If you are exploring short-term rental properties, visit our short-term rental loan programs tailored to Airbnb and vacation rental investors.
DSCR Loan
Qualification Overview
While program structures vary, typical DSCR rental loan guidelines include:
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Minimum DSCR ratio: 1.0 or higher
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Loan-to-value: 75%–80% depending on program
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Credit score minimum: 640
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Loan amounts starting at $75,000, depending on program structure.
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Minimum property value: $100,000
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30-year fixed options available
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Prepayment structures from 0–5 years
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Cash-out refinance options available
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Entity vesting (LLC) encouraged
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Financing available for 1–10 unit properties
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Our team structures DSCR rental loans based on property performance and investor strategy rather than traditional employment income.
DSCR Loan Options
DSCR rental loans are available for property purchases, rate and term refinances, and cash-out refinances for investors seeking portfolio expansion.
Our team structures DSCR rental loans through competitive nationwide lending programs tailored to each investor’s strategy.
Explore our nationwide DSCR rental loans designed specifically for real estate investors.
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Purchase Loans
Loans for investors who are purchasing rent-ready properties
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Up to 80% LTV
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Single property or portfolios
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Loans from $75K to $50MM
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15, 20, 30, 40-year term options
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Interest-only options
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Prepayment penalty periods from 0 to 5 years
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1-10 unit residential properties
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Qualify cash flow using actual or market rent
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Minimum DSCR requirement as low as 1.0
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Delayed financing options
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Rate & Term Refinance Loans
Loans for investors looking to refinance an existing loan
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Up to 80% LTV
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Single property or portfolios
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Loans from $75K to $50MM
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15, 20, 30, 40-year term options
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Interest-only options
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Prepayment penalty periods from 0 to 5 years
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1-10 unit residential properties
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Vacant properties allowed
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0-month seasoning options
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Minimum DSCR requirement as low as 1.0
Cash-Out Refinance Loans
Loans for investors who want to cash out some or all of their equity in a property
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Up to 75% LTV
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Single property or portfolios
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Loans from $75K to $50MM
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15, 20, 30, 40-year term options
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Interest-only options
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Prepayment penalty periods from 0 to 5 years
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1-10 unit residential properties
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Vacant properties allowed
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0-month seasoning options
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Minimum DSCR requirement as low as 1.0
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Cash-out funds can cover reserve requirements
Why Investors Choose DSCR Rental Loans
DSCR rental loans have become one of the most popular financing solutions for real estate investors because they provide:
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No traditional income verification
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Qualification based on rental cash flow
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Scalable portfolio financing
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Long-term 30-year fixed options
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Cash-out refinancing flexibility
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LLC and entity vesting structures
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Simplified underwriting for repeat investors
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Financing for 1–10 unit residential investment properties
For investors repositioning properties before holding long-term, explore our fix and flip bridge financing
Who DSCR Rental Loans Are Designed For
DSCR rental loans are ideal for:
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Portfolio landlords
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First-time rental investors
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BRRRR strategy investors
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Investors refinancing into long-term holds
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LLC and entity-based property owners
Whether you are acquiring a single rental property or expanding a multi-property portfolio, DSCR financing provides flexibility for long-term growth.
DSCR Loans vs
Conventional Investment Loans
Traditional conventional loans require tax returns, W-2 income verification, and strict debt-to-income ratios. DSCR rental loans instead focus on property performance and projected rental income.
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This makes DSCR financing particularly attractive for investors who:
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Maximize deductions on tax returns
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Own multiple properties
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Operate through LLCs
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Seek simplified underwriting
DSCR loans allow investors to scale without being limited by personal income documentation.
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DSCR rental loans allow investors to scale without being constrained by traditional debt-to-income calculations.
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Many investors use short-term bridge financing before transitioning into long-term DSCR rental loans.
DSCR Rental Loan Availability by State
Nationwide DSCR Financing for Real Estate Investors
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Grafton Funding provides DSCR rental loans across most U.S. states for non-owner occupied residential investment properties.
Our programs are structured for investors seeking long-term financing based on property cash flow rather than personal income.
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We are currently extremely active in the following rapidly-growing markets:​
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For availability in additional states, contact our team to confirm program eligibility.
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Bottom Line:
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Whether you are acquiring a new rental property or refinancing an existing investment, our DSCR loan programs are available nationwide in most major investor markets.
DSCR Rental Loan FAQs
What is a DSCR rental loan?
A DSCR rental loan allows investors to qualify based on rental income rather than personal income documentation.
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What DSCR ratio is required?
Most programs require a minimum DSCR ratio of 1.0 or higher.
Can I use projected rental income to qualify?
Yes, many DSCR programs allow projected market rents to determine eligibility.
Are 30-year fixed options available?
Yes, long-term 30-year fixed options are available depending on program guidelines.
Can I close in an LLC?
Yes, entity vesting is encouraged for many DSCR loan programs.
Do you allow cash-out refinancing?
Yes, DSCR programs offer cash-out refinance options for investors seeking equity access.
What property types are eligible?
DSCR rental loans are available for 1–10 unit residential investment properties.
Do you lend nationwide?
Yes, we provide DSCR rental financing across most U.S. states.