DSCR Loans for 1-4 Unit Rental Properties
Thirty-year financing for stabilized, non-owner-occupied rentals. Qualification is based primarily on property cash flow rather than personal income. Clean files can close in as little as two weeks. Entity borrowers and eligible foreign nationals are considered.
Rental purchases
Rate-and-term refinances
Cash-out refinances
Stabilized 1-4 unit properties
Entity borrowers
What Is a DSCR Loan?
A debt-service coverage ratio loan qualifies an investment property primarily on its rental income relative to its monthly housing expense. It does not require the same personal-income documentation as a conventional mortgage, making it useful for self-employed investors and borrowers building rental portfolios.
Requirements
Submit a scenario
Enough detail to route a broker scenario quickly.
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Eligible Transactions
Purchase
Rate-and-term refinance
Cash-out refinance
Long-term rental
Eligible short-term rental
Property address
Purchase price or current value
Requested loan amount
Current or projected monthly rent
Taxes, insurance, and association dues
Transaction type
Estimated FICO
Entity information
Program FAQs
Steel Root divides the property's qualifying monthly rental income by its monthly housing obligation, which is principal, interest, taxes, insurance, and HOA dues where applicable.
No. The DSCR program qualifies primarily on the property's cash flow, so there is no personal income verification, tax return, or W-2 requirement. The property, credit profile, entity, reserves, and appraisal still apply.
Yes. Short-term rental properties are eligible under Steel Root's DSCR program, but they are underwritten separately rather than as a standard rental file.
Yes. The DSCR program supports purchase, rate-and-term refinance, and cash-out refinance. Cash-out is available up to 75% LTV, with purchase and rate-and-term refinance up to 80% LTV.
Yes. First-time investors are eligible on the standard 1-4 unit DSCR program when the deal, credit, and reserves support it.
Yes. Eligible foreign nationals may qualify under Steel Root's DSCR program, subject to documentation, reserves, entity, and other program requirements.
Eligible property types include single-family residences, condominiums, townhomes, and 2-4 unit residential properties. Non-warrantable condos are accepted, and the property must be non-owner-occupied.
Ready to finance a rental property?
Submit the property, rent, requested loan, and transaction details for principal review.