Debt service coverage ratio (DSCR) loans are viewed by many investors as an excellent financial tool to build a portfolio of rental properties. Eligibility for a DSCR loan is based primarily on a property’s income-producing potential, rather than the personal income of the borrower.
This guide covers the best lenders offering DSCR loans, along with how you can determine the one best suited for you. LendingOne, in particular, tops the list due to its investor-focused model, offering flexible DSCR options and a nationwide footprint.
Regardless of where you are in your investment journey, getting paired with the right lender can make all the difference in helping you reach your goals.
Key Takeaways
- DSCR loans allow investors to get financing based on the property’s income potential, rather than the borrower’s personal income.
- Available loan terms, rates, and underwriting criteria can vary greatly among lenders.
- Shopping multiple DSCR lenders is highly recommended to ensure you find a lending partner aligned with your investment strategy.
What Is a DSCR Loan?
A DSCR loan is a way to finance real estate by evaluating the property’s income potential. These loans work by considering the property’s net operating income and dividing it by its total debt service per year.
A ratio greater than 1.0 means the income should cover at least the debt payments. Not all loans are created equal, however, as terms and fees vary among lenders. In addition to a DSCR ratio of greater than 1.0, lenders may look for a loan-to-value (LTV) ratio of up to 80%.
Although, these requirements may vary by loan type, whether fixed, adjustable-rate mortgage (ARM), or interest-only. As one example, you can explore our DSCR rental loans to see what we offer to investors.
Top DSCR Lenders in 2025
Borrowers have many options when it comes to choosing a DSCR lender. The best one will depend on your rental strategy, experience level, and preferred loan terms.
LendingOne is a top choice because its programs are heavily geared towards investors, but other lenders in this guide also offer competitive programs.
1. LendingOne
LendingOne is a national direct lender specializing in financing solutions tailored for investors. It offers financing in every state except Alaska, Nevada, North Dakota, and South Dakota, with programs that can cater to new acquisitions as well as long-term rentals.
With a low DSCR ratio requirement of as low as 0.75, getting approved can be much simpler. Investors can also choose from fixed- and adjustable-rate financing options, with terms up to 30 years.
LendingOne stands out for its commitment to streamlining the process and offering financing flexibility. Borrowers routinely benefit from quick closings and guidance from the lending team. Whether you’re a new or seasoned investor, LendingOne can provide the financing you need quickly.
2. Renovo Financial
Renovo Financial offers DSCR loans primarily for stabilized rental properties, and financing is available nationwide.
For qualification and loan eligibility, the lender typically requires investors to have a track record of success in prior rentals. While Renovo Financial can work with newer investors, pricing and loan terms may not be as competitive.
Notably, the company utilizes relationship-driven underwriting. This can provide a greater chance of approval with more competitive terms for investors seeking repeat transactions with a single lender.
For this reason, it’s a great option for investors who want a long-term financing partner, rather than an option for one-time deals.
3. Dominion Financial
Dominion Financial is a private lender that can offer DSCR loans for investors who need to finance portfolios of single-family properties. Lending programs are available nationwide and are geared towards investors with long-term rentals.
This lender appeals to investors who value reliability and consistency when it comes to being able to obtain funds for a real estate investment opportunity.
However, it should be noted that its underwriting and eligibility criteria can be more strict than those of other lenders. This factor can result in slower funding speeds and less flexibility in financing terms.
4. Conventus
Conventus is a private lender based in California, making it an excellent option for those looking to invest in its local real estate market. With that said, the lender also lends in 44 other states, with a focus on DSCR financing for short-term rentals.
Investors will typically find that Conventus has a flexible approach to its underwriting standards. This can make it easier to qualify for investors or properties that have a less traditional income or cash flow profile.
For that reason, it’s an excellent option to consider for those seeking complex investments that may not otherwise meet more traditional lending requirements.
5. Constructive Capital
Constructive Capital is a private lender that offers investors DSCR loans, bridge funding, and other temporary and transitional financing programs. It can be an ideal fit for investors who need custom loan terms that otherwise aren’t offered by traditional DSCR lenders.
It also has flexibility in its eligibility criteria when it comes to financing properties where the property condition may not meet the requirements for other lending programs.
However, some investors may find that loan sizing and geographic availability can be more limited. Before you get started, you’ll want to be sure that Constructive Capital offers financing for your area.
6. RCN Capital
RCN Capital is a nationwide private lender that offers a wide range of financing for real estate investors. This includes short-term, long-term, construction, fix and flip, and DSCR programs.
It is widely known for its reliability and consistency when it comes to providing the necessary funding to allow investors to acquire, rehab, and exit investment projects.
RCN Capital often works with experienced investors who are already managing a portfolio of several properties. Investors may, however, find that the terms offered may be less flexible and more conservative.
7. Visio Lending
Visio Lending offers financing centered around DSCR programs. This makes it ideal for long-term rental investors, as well as those looking to grow an existing portfolio.
Visio Lending has relatively standard underwriting processes and requirements. The appeal for this is its ability to offer a consistent experience for repeat customers seeking a predictable and reliable experience across markets.
While the company can offer financing for short-term, transitional, or less traditional properties, investors may find that terms are not as competitive or flexible. As a result, most find the company’s solutions better suited for stabilized, cash-flowing real estate.
8. Logan Finance
With Logan Finance, investors can get DSCR loans through wholesale and broker channels. Its expertise and loan program popularity center around long-term retail financing.
Highly qualified investors will be eligible for flexible and competitive financing terms and will be able to experience a streamlined process from application to funding.
Investors should be aware, however, that since it offers financing through intermediaries, support and guidance may be limited. As a result, many find Logan Finance to be more suitable for straightforward, less complex transactions.
How to Compare the Best DSCR Lenders
To choose the best DSCR for your circumstances, consider things like underwriting criteria, flexibility, available loan programs, funding speeds, and pricing. For more on how to evaluate DSCR programs, head over to our overview of DSCR loans for real estate investors.
Speed and Efficiency
Quick access to funding can mean the difference between securing a property and losing out to another buyer. Here, the ability to close quickly can be critical, especially in markets where sellers are receiving multiple offers in a short period of time.
While it’s possible to close in around 10 days, a more realistic timeline is closer to 21 days or more, depending on the complexity of the transaction.
Investor-Focused Underwriting
Lenders that understand the nuances of rental real estate can increase the likelihood of getting approved, given their ability to consider less traditional underwriting criteria.
This commonly involves looking at the property’s ability to generate cash flow, as opposed to the borrower’s own credit and income. Investor-focused underwriting can also make it likely that loans get approved more quickly and without requiring as much paperwork.
DSCR and LTV Thresholds
Lenders each have varying requirements for DSCR and LTV. In most cases, a DSCR ratio between 1.0 and 1.25 will provide excellent odds of getting approved. The higher your DSCR is, the more favorable pricing you can get.
Similarly, lenders look for an LTV of up to 80%. The lower your LTV, the better, as lenders see your investment as less of a risk.
If you’re curious how well a property might perform, consider utilizing our DSCR loan calculator.
Loan Flexibility and Structure
The best DSCR lenders offer a variety of loan terms and structures to accommodate different investment strategies.
Longer repayment terms of up to 30 years can be suitable for properties held in the long term. Meanwhile, fixed, interest-only, or adjustable-rate programs can provide stability or increased property cash flow.
Fees and Transparency
In addition to rates, other costs are incurred as part of the lending process, many of which are passed on to the borrower. Common charges include origination, underwriting, appraisal, closing, and third-party inspections.
Stick with lenders that are transparent about these costs up front to avoid surprises later in the lending process.
Nationwide Coverage
Investors looking to expand or grow across state lines should make sure they partner with a lender that has a broad geographic reach. Lenders may not be able to lend in a state if they have not yet obtained the proper licensing.
Choosing a lender that can offer financing for your properties can eliminate the possibility of having to find another lender in the future.
Why LendingOne Leads the Market
LendingOne stands apart from the many excellent DSCR lenders because of its ability to support investors looking to scale their rental portfolios. It also offers flexible underwriting processes, a wide range of loan terms and structures, and fast funding speeds.
Those looking to take the next steps in growing their portfolios can connect with a LendingOne loan advisor to discuss their goals.
Tailored for Growth Investors
LendingOne’s programs are geared toward those who regularly acquire and manage rental properties. It’s particularly ideal for those implementing a buy, rehab, rent, refinance, and repeat (BRRRR) or managing between 5 and 20 pieces of real estate.
LendingOne’s underwriting approach supports this investment model due to a focus on an individual property’s ability to generate positive cash flow, rather than a borrower’s personal income or tax returns.
Fast, Transparent Closings
LendingOne utilizes a defined five-step process to ensure borrowers move through the financing process quickly and smoothly. The end result is the ability to go from prequalification to funding in an average of 14 to 21 days.
Fast closings are also aided by the fact that its underwriting teams are well-versed in real estate investment loans. This makes conditions and requirements straightforward and simple.
Flexible Loan Options
LendingOne offers a wide range of loan options to meet the needs of nearly any type of investor. For example, investors who want to hold real estate long-term can select the company’s 30-year programs.
Fixed, interest-only, and adjustable-rate options are also available, depending on whether you want stability in payments or the ability to boost cash flow in the immediate term.
Nationwide Partner Network
With the ability to lend in 46 states, LendingOne can provide the same consistent lending experience for investors looking to expand into new markets.
This eliminates the need to acclimate to a new lender’s processes, something that could otherwise slow down the rate at which you can continue to finance properties.
See where we lend for a full list of where financing is available.
Choosing the Best DSCR Lender for Your Portfolio
Choosing the best DSCR ultimately comes down to your goals. Some investors place a high value on the ability to close deals quickly, while others may focus more on the ability to secure financing at the best pricing.
If you’re uncertain, LendingOne is an excellent starting point given its balanced combination of speed, flexibility, and expertise. You can connect with a LendingOne advisor today to see which DSCR solution is right for you.
Frequently Asked Questions
What minimum DSCR is required to qualify?
Most lenders require a DSCR between 1.0 and 1.25 to be eligible for financing. The higher the ratio, the more easily the property’s income can cover the underlying debt payment. While some lenders allow lower ratios, those loans often carry higher rates and fees.
Can I use a DSCR loan for short-term rentals?
Yes. DSCR loans can be used to finance both short- and long-term rental properties. Lenders will typically evaluate market rents or projected rents in calculating a DSCR ratio. Eligibility criteria, however, may be different, and availability can also vary by lender.
Do I need personal income verification?
In most cases, no personal income verification is needed. This is because DSCR loans prioritize the income-producing ability of the property in determining ability to repay debt. More traditional methods often involve looking at a borrower’s personal income.
What are typical interest rates and fees?
Interest rates fluctuate throughout the year. However, current rates typically fall between 6% and 8%.
Note that this can vary by lender, the loan program you choose, as well as the strength of your application. This can include things like your DSCR ratio, down payment amount, and credit profile.
Common fees include origination, underwriting, appraisal, and other third-party inspection fees.
How quickly can DSCR loans close?
On average, DSCR loans can be closed within 21 to 30 days. The specific timing can vary based on things like the lender’s total volume of loan applications, the complexity of your application, and the availability of third-party companies like appraisers.
