Skip links

DSCR Loans for High Leverage and Faster Closings

Our Debt Service Coverage Ratio (DSCR) loans are designed to help investors maximize their returns, with loans that close in as little as three weeks. Experience the power of lower interest rates, better flexibility, and no credit reporting that could negatively impact your DTI/DTU.

2500+

Happy Clients

$1B +

Funded Projects

95%

Applications Approved

Apply for a DSCR Loan

Fill in our form below to apply for a DSCR loan with Express Capital Financing. The form will take around a minute to complete.
One of our experienced loan officers will be in touch to discuss your application.

Our Unique DSCR Loan Offerings

Our DSCR Loan Terms

Unlock tailored financing solutions for your 1-4 unit residential properties. Our transparent and flexible DSCR loan terms cater to your needs with underwriting based on your property's cash flow, not your personal income.

DSCR Overview

nt_header_0DSCR
Project TypeSingle Family Residential, Multi-Family (2-4 Units), Condominiums, Townhomes
Loan Amount$50,000 - $3,000,000
Loan To Value (LTV)Up to 80%
Rent Coverage Ratio1.0x (No DSCR Available)
Loan Term5/30, 7/30, 10/30, Fixed 30/30
Interest RateStarting at 6.5%+
Rehab FinancingNot Available
Proceed UsagePurchase, Refinance, Cashout
Those Who QualifyUS Citizens, Foreign Nationals, Permanent Resident Alien
Minimum Credit Score650
Points1.5%+
Pre-Payment PenaltyOptions of: None, 1.0.0 or 3.0.0, 3.2.1 or 5.4.3.2.1

Seamless DSCR Financing Starts Here

Experience ease, simplicity, and transparency in your real estate investment properties through Express Capital Financing's DSCR Loan program. Our application process, from initial consultation to final funding, is meticulously tailored for straightforward success. Navigate the complexities of managing rental properties with confidence, backed by our streamlined financing solutions.

Discuss Your Deal and Goals

Connect with your dedicated DSCR loan officer to discuss your unique project and financial objectives.

Customized Loan Quote

We’ll prepare a personalized DSCR loan quote, crafted specifically for your project, so it aligns perfectly with your goals.

Document Collection and Review

Our streamlined process involves collecting and reviewing the necessary documentation, making the paperwork hassle-free for you.

You’ve Secured Funding

It’s time to get excited about your project becoming a reality with Express Capital Financing.

Why Choose Express Capital Financing For Your Next Rental Property?

Discover unparalleled flexibility with Express Capital Financing's DSCR Loans. We prioritize your property's cash flow, not your personal income, offering unique solutions for investors with varying credit scores, property types, or unconventional financial situations. Each DSCR loan is individually assessed, delivering personalized structures that align with your specific needs.

Quick Funding

Get fast, reliable financing to seize opportunities with unmatched speed.

Maximum Leverage

Maximize your real estate portfolio effortlessly with higher leverage.

Unmatched Flexibility

Enjoy tailored loans that flexibly adapt to your needs and goals.

Try Our DSCR Calculator

Ideal for those seeking steady monthly cash flow, our DSCR calculator caters to diverse asset types—be it residential or commercial. Whether you're acquiring properties for rental income or exploring BRRR opportunities, this DSCR calculator delivers key insights like monthly and annual payments, down payment, estimated closing cost, cash to close, cash flow, and cash on cash return.

DSCR Loan Success Stories

Explore firsthand accounts, success stories, and testimonials that showcase the effectiveness of our DSCR loans. Our customers have experienced the power of our investor-friendly terms, efficient funding, and unwavering support, resulting in successful and profitable rental property investments.

DSCR Loan FAQs

Yes, interest rates for DSCR loans are generally higher than for traditional mortgages.

Rates vary by lender, credit score (e.g., 700+ gets better terms), and DSCR ratio, higher cash flow can lower the rate slightly.

The trade off for a higher interest rate is that the investor will have greater flexibility, a faster loan approval, no hard credit pulls, no credit tradelines and no limit to how many properties you can finance.

Contact us today to find out the current DSCR interest rates.

Pre-payment penalties (PPP) are common with DSCR loans but they are not universal. They typically last 1-5 years and might be structured as:

1. A percentage of the loan balance (e.g., 2-5% if paid off early).
2. A step-down schedule (e.g., 5% year one, 4% year two, down to 0%).

Some lenders offer no-penalty options, especially for shorter terms or higher rates. We recommend that you check the loan terms.

Penalties protect lenders since DSCR loans are often sold to investors expecting steady returns.

With ECF, there is an option for no PPP in exchange for a higher rate.

Estimate the profitability of your DSCR loan with our DSCR loan calculator.

Yes, foreign nationals can qualify for DSCR loans. This makes them popular among international investors. The lender focusses on the property’s income, not the borrower’s U.S. employment or residency status.

Yes, you can have multiple DSCR loans at once.

Approval depends on each property’s cash flow and your ability to manage down payments and reserves.

ECF operate on only 1 DSCR loan per property however, we do not limit how many properties you can have financing.

No, the qualification criteria vary since DSCR loans are non-QM and lender-specific.

Some of the common differences in qualification criteria include:

1. Minimum DSCR. This can vary. from 0.75 to 1.25.
2. Credit score. The minimum is usually between 650 and 700.
2. A down payment of between 20-30%.
3. Reserves. There can be between 3 and 12 months of payments.
4. Property Types. Some DSCR Lenders exclude condos or short-term rentals.

No, personal income verification isn’t typically required for DSCR loans.

Lenders don’t typically ask for W-2s, pay stubs, or tax returns to assess your earnings. They evaluate the property’s current or projected rental income via lease agreements, appraisals or market rent surveys.

Contact us today to find out what verification you require.

The minimum down payment for a DSCR loan usually ranges from 20% to 25% of the property’s purchase price or appraised value (whichever is lower).

For example, a $200,000 property might require $40,000-$50,000 down. Higher-risk scenarios like a DSCR below 1.0, lower credit scores (e.g., 620), or properties needing repairs could push it to 30% or more. Cash-out refinances might also require more equity upfront (e.g., 25-30%).

Estimate the profitability of your DSCR loan with our DSCR calculator.

Eligible properties are income-producing residential types, including:

1. Single-family homes (SFHs)
2. Duplexes, triplexes, and fourplexes (1-4 units are standard)
3. Small multifamily buildings (5-10 units with some lenders. ECF will do up to 9 units.)
4. Condos and townhomes (if rentable)

Commercial properties (e.g., offices, retail) usually don’t qualify.

For commercial properties, take a look at our Lite Doc Commercial Mortgage program.

You’ll likely need less personal paperwork than with traditional loans.

You should still expect to show:

1. Current lease agreements, rent rolls, or a market rent survey from an appraiser if the property isn’t leased yet.
2. A soft credit score to check your FICO score.
3. A property appraisal.
4. Evidence of your last 3 to 12 mortgage repayments
5. Any evidence of property insurance.
6. Any Entity documents if this applies to you.

Contact us today to find out more about the documentation you might require.

DSCR loans are available nationwide, but some lenders restrict offerings due to state regulations or market preferences.

We lend nationwide across the United States except ND & SD.

Yes, DSCR loans can be closed under an LLC.

To do this, you’ll need to provide the LLC’s Articles of Organization, Operating Agreement, and an EIN (Employer Identification Number). Some lenders require a personal guarantee from an LLC member, especially if the entity is new or the DSCR is low.

A DSCR loan differs from a traditional loan primarily because traditional mortgages are for primary residences or second homes. DSCR loans are for investment properties only. Traditional mortgages also prioritize your income, debt-to-income (DTI) ratio, and credit history. DSCR loans zero in on the property’s cash flow via the DSCR ratio, often ignoring personal DTI. DSCR loans tend to close faster (3-5 weeks) due to less personal financial scrutiny.

The DSCR is a ratio that measures a property’s net operating income (NOI) against its annual debt service (mortgage costs).

The formula is: DSCR = Net Operating Income (NOI) ÷ Total Debt Service (PITIA)

Net Operating Income (NOI) = This is the annual rental income minus operating expenses such as property management fees, maintenance, utilities paid by the landlord and vacancies but not the mortgage itself. For example, if a property earns $36,000 in rent yearly and has $6,000 in expenses, the NOI is $30,000.

Total Debt Service (PITIA) = This includes the annual mortgage payment, principal, interest, taxes, insurance, and association fees (if applicable). If the mortgage costs $24,000 per year, the DSCR would be $30,000 ÷ $24,000 = 1.25.

Get an accurate estimation for you with our DSCR calculator.

A DSCR (Debt Service Coverage Ratio) loan is a mortgage designed specifically for real estate investors who are purchasing or refinancing income-producing properties, such as rental homes, duplexes, or small apartment buildings.

Unlike traditional mortgages that hinge on your personal income like pay stubs or W-2s, DSCR loans focus on the property’s ability to generate enough cash flow to cover the mortgage payment.

For more information, take a look at our article "What are DSCR Loans?".

DSCR loans typically offer LTV ratios of 70% to 80% for purchases or refinances. This means you can borrow up to 70-80% of the property’s value, with the rest as your down payment or equity.

As an example, a $300,000 property with an 80% LTV allows a $240,000 loan. Cash-out refinances might cap at 70-75% LTV, and “no-ratio” DSCR loans (DSCR < 1.0) could drop to 65-70% LTV to offset risk. Higher LTVs (up to 85%) are rare and usually require exceptional credit or cash flow.

Contact us today to find out the current LTV ratio.

Yes, DSCR loans can finance short-term rentals (e.g., Airbnb, VRBO).

Lenders use a 12-month average of rental income (from booking records) or an appraiser’s short-term rent projection.

No, you generally can’t live in a property financed with a DSCR loan.

These loans are for investment properties, not owner-occupied homes.

Lenders expect rental income to cover the mortgage. Living in it voids that premise.

This website uses cookies to improve your web experience.
[my_get_param key="title"]