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Steel Root Capital

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.

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

Purchase and Rate-Term LTVUp to 80%
Cash-Out LTVUp to 75%
Minimum DSCR0.75x, with lower ratios reviewed case by case
Typical FICO660+ standard
Loan Term30-year fixed, adjustable, and eligible interest-only options
Property TypesSFR, townhome, condo, and 2-4 unit
Borrowing EntityLLC, corporation, or qualifying trust

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Eligible Transactions

Purchase

Rate-and-term refinance

Cash-out refinance

Long-term rental

Eligible short-term rental

DSCR Loans

What to Submit

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.