DSCR Rental Property Loans
Faundare Capital provides DSCR (Debt Service Coverage Ratio) rental property loans, designed for investors looking to purchase or refinance properties held for long-term rental or short-term rental income. The eligibility focuses on the property’s cash flow rather than traditional personal income and tax returns.
What Do Landlords Say?
Our DSCR Loan Terms
Collateral
Non-Owner Occupied 1-4 Units Residential Properties
Condos
Townhomes
Duplex
5+ Units
Mixed-Use Properties
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LTV
Up to 80% of the As-Is Value for Purchase
Up to 80% for Refinance
Up to 80% for Cash-Out Refinance
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Term
30-Year Fixed
Hybrid ARMS (5/1, 7/1, 10/1)
Interest-Only Options Available
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Minimum Property Value
$100k
​Loan Amount
$100k – $5M
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Minimum FICO
650
No Minimum FICO with a 50% LTV
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Rates
As Low As 5.65%
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Fees
$1,995 Underwriting Fee
0% Origination Fee for Experienced Borrowers
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Closing Speed
As Fast as 2 Weeks​
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Pre-Payment Penalty
5 Years with Other Options
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Why Choose Our DSCR Loan?
Wholesale Rate
Get access to the wholesale rate hardly seen elsewhere.
Fast Speed
Receive a soft quote in 24 hours and closing as fast as 2 weeks.
Simple Docs
Make documentation and underwriting simple
Flexible Terms
Enable flexible terms to fit your various situations
DSCR Loan Guide
for Rental Investors
What Is a DSCR Loan?
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A DSCR loan is rental property financing that focuses on the income produced by the property, rather than only the borrower’s personal income. DSCR stands for Debt Service Coverage Ratio. Lenders use this ratio to review whether the property’s rental income can support the monthly debt payment.
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For real estate investors, DSCR financing can be useful when tax returns, W-2 income, or traditional personal income documents do not fully reflect the strength of the investment property. If you want to estimate whether a rental property may support the requested loan amount, use our DSCR Calculator.
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Who DSCR Loans Are Designed For
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DSCR loans are built for real estate investors who want to purchase, refinance, or cash out rental properties. They can be a practical option for self-employed investors, LLC borrowers, portfolio landlords, and buyers who want the property’s cash flow to drive the loan review.
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This type of loan is commonly used by investors who own or are acquiring long-term rental properties, multifamily properties, mixed-use properties, and other income-producing real estate. Investors comparing different financing structures can also review our Bridge Loan and Commercial Property Loan programs.
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How is DSCR Calculated
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For rental property loans, DSCR compares the property’s qualifying rental income with the required monthly property payment. A simple way to understand it is:
DSCR = Qualifying Monthly Rental Income ÷ Monthly PITIA Payment
PITIA usually means principal, interest, property taxes, insurance, and any applicable association dues. For example, if a rental property has $4,000 in qualifying monthly rent and the monthly PITIA payment is $3,200, the DSCR is 1.25.
A DSCR of 1.25 means the property produces about 25% more qualifying income than the required monthly payment. A DSCR of 1.00 means the qualifying rental income is approximately equal to the monthly payment. A DSCR below 1.00 means the property’s qualifying income may not fully cover the payment. Different DSCR loan programs may calculate qualifying rental income differently. Depending on the property and loan type, lenders may review lease income, market rent, appraiser rent schedules, short-term rental history, or other acceptable rental income support.
If you want to estimate whether a rental property may support the requested loan amount, use our DSCR Calculator.
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​​DSCR Loan Example Scenarios
Rental Purchase Example: An investor purchases a single-family rental property with market rent that supports the projected monthly payment. Instead of qualifying mainly through personal income, the loan review focuses on rent, property value, credit profile, and loan structure.
Cash-Out Refinance Example: A landlord owns a stabilized rental property with equity and wants to access capital for another investment. A DSCR cash-out refinance may allow the investor to use property equity while keeping the loan tied to rental income performance.
Short-Term Rental Example: An investor purchases or refinances a property intended for short-term rental use. Depending on program guidelines, underwriting may review market rent, lease income, short-term rental history, or other acceptable income documentation.
Portfolio Investor Example: An investor owns multiple rental properties through an LLC and wants financing that does not rely heavily on personal tax return income. DSCR financing may help portfolio investors scale when the properties have strong rental income and acceptable leverage.
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Current Faundare Capital DSCR Loan Terms
Faundare Capital’s DSCR program currently supports non-owner occupied 1–4 unit residential properties, condos, townhomes, duplexes, 5+ unit properties, mixed-use properties, and planned unit developments (PUD). Available options include up to 80% LTV for purchase, up to 80% for refinance, and up to 80% for cash-out refinance.
Loan term options include 30-year fixed, hybrid ARM options including 5/1, 7/1, and 10/1, and interest-only options. Current terms also include a $100K minimum property value, $150K–$5M loan amount range, 650 minimum FICO (options for no minimum FICO with a 50% LTV), rates as low as 5.65%, no experience requirement, and a 5-year pre-payment penalty with other options available. For a customized review of your purchase, refinance, or cash-out request, request a soft quote from Faundare Capital.
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Common Uses for DSCR Financing
Investors use DSCR loans to buy rental properties, refinance existing rental loans, pull equity through cash-out refinance, expand rental portfolios, and finance long-term income-producing properties. Because the review focuses on property cash flow, DSCR financing can be a practical option for investors whose tax returns or personal income documents do not tell the full story of their real estate business. For more investor education, visit our Articles section for commercial mortgage and private lending insights.
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Documents Often Needed
Typical review items may include the property address, purchase contract or current mortgage statement, lease or rent information, entity documents if borrowing through an LLC, bank statements or proof of funds, insurance information, appraisal or rent schedule, and payoff statement for refinances.
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Why Work With Faundare Capital?
Faundare Capital helps real estate investors compare private lending options, understand DSCR loan terms, and move quickly when a rental property opportunity is available.
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Our team focuses on practical guidance, fast review, and financing structures built around investment real estate. Whether you are buying your first rental property, refinancing an existing asset, or using cash-out financing to grow your portfolio, Faundare Capital can help you evaluate available DSCR loan options.
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Ready to Review Your Rental Property Loan Options?
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If you are purchasing, refinancing, or cashing out a rental property, Faundare Capital can help you review available DSCR financing options and determine whether the property’s income supports the loan request. Terms, rates, LTV, and eligibility are subject to underwriting, appraisal, market conditions, borrower qualifications, and investor program availability.
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