DSCR Rental Property Loans

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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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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