DSCR / RENTAL LOANS
Rental Property Financing Based on Cash Flow, Not Personal Income
DSCR loans help real estate investors finance rental properties using the income potential of the property instead of relying primarily on personal income, tax returns, or traditional debt-to-income requirements.
$800M+
IN LOANS CLOSED
300+
PROJECTS FUNDED
200+
HAPPY CLIENTS
12+
YEARS OF EXPERIENCE
overview
Flexible Rental Property Loans for Real Estate Investors
DSCR loans are designed for real estate investors who want to purchase, refinance, or scale rental property portfolios without going through traditional income-based underwriting.
Instead of focusing primarily on personal income, many DSCR lenders evaluate whether the property’s rental income can support the proposed loan payment. This makes DSCR financing a popular option for investors buying long-term rentals, short-term rentals, small multifamily properties, and income-producing residential assets.
Build Lending funds DSCR rental loans directly for single properties and portfolios — no tax returns, no outside approval.
DSCR Rental Loans Can Be Used For
Rental Property Purchases
Finance new long-term rental acquisitions using the property’s income potential.
Cash-Out Refinances
Access equity from existing rental properties to reinvest, acquire more assets, or improve liquidity.
Rate & Term Refinances
Refinance existing debt into a rental-focused loan structure.
Short-Term Rentals
Financing options for Airbnb, VRBO, and other short-term rental properties, depending on lender guidelines.
Portfolio Loans
Finance or refinance multiple rental properties under one loan structure when available.
Small Multifamily
Loan options for duplexes, triplexes, fourplexes, and select 5+ unit rental properties.
Typical DSCR/REntal Loan Structure
Loan Type
Rental property loan / DSCR loan
Property Types
SFR, condos, townhomes, 2–4 units, small multifamily, select short-term rentals
Loan Amounts
$75,000 - $20,000,000+
Leverage
Up to 90% LTV
Term
Up to 30-year Fixed or Adjustable
DSCR
Typically 1.05x but lower in some cases
Occupancy
Tenant Occupied. NO Owner Occupied
Actual terms vary by borrower qualifications, property type, project budget, market, and exit strategy.
What matters most to DSCR lenders
Property Cash Flow
We review rental income compared to the monthly debt payment to determine whether the property can support the loan.
DSCR Ratio
The debt service coverage ratio helps us evaluate the relationship between income and debt payments.
Property Type
Single-family rentals, condos, townhomes, 2–4 units, and small multifamily properties may all qualify.
Credit Profile
We consider borrower credit, even though personal income documentation may be reduced or not required.
Loan-to-Value
The requested leverage matters. Lower leverage may help improve pricing, approval likelihood, or available loan options.
Rental Market Strength
We want to see that the property is located in a market with realistic rental demand, comparable rents, and a clear investment strategy.
frequently asked
Common Questions
A DSCR loan is a rental property loan where the lender evaluates the property’s income compared to the loan payment. It is commonly used by real estate investors who want financing based more on property cash flow than personal income.
DSCR loan programs do not require traditional income verification like W-2s, pay stubs, or tax returns. However, requirements can vary, and credit, liquidity, rental income, and property value still matter.
DSCR stands for debt service coverage ratio. It measures whether the property’s income is enough to cover the proposed debt payment.
In some cases, yes.
Yes. DSCR loans are commonly used for cash-out refinances, allowing investors to access equity from rental properties.
Yes, depending on the property type. Many DSCR programs are available for 1–4 unit residential rental properties.
Yes.
Credit requirements vary. Stronger credit may improve pricing, leverage, and available loan options, but Build Lending can help review the scenario and identify potential fits.
Ready to Finance or Refinance a Rental Property?
Whether you are buying your first rental, refinancing an existing property, or scaling a portfolio, Build Lending can help you find DSCR rental loan options that fit your investment strategy.