Daycare
DSCR Loans.

Buy, refinance, or take cash out of a childcare center or daycare building. Licensed capacity, the operator's track record, and the lease all matter, and the loan is built around them.

Get a Quote See typical terms

Typical terms

$500K

Min loan

$10M+

Max loan

75%

Maximum LTV

30 yr

Loans available

0.9 DSCR from $500K to $3M, so you can often borrow more

Purchase, refinance, and cash out

Franchise and independent operators

How it works

See how
Daycare DSCR works

Daycare DSCR covers childcare centers and daycare buildings with a lease or operating income. Families stay with a good center for years, and licensed centers in growing areas often have waitlists. That makes a well-run daycare a steady tenant.

The loan looks at the operator and the building together. A national franchise or an established independent operator on a long lease supports the loan. The building's licensed capacity, its outdoor play space, and whether it was purpose-built or converted are reviewed as well. Terms typically run 5 to 30 years, with 30 year loans available, and maximum LTV is typically 75%. Centers leased to national brands like KinderCare have their own terms, with no prepayment penalty, on our Childcare and Pet Care NNN Loans page.

Purchase a leased childcare center or daycare building
Refinance daycare property debt
Take cash out typically up to 75% LTV on a building you already own

See what you can typically borrow.

Share the address. We will confirm the fit and send back typical terms.

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Typical terms

Daycare DSCR terms

These are typical commercial DSCR terms for this property type. Your quote depends on the building.

Loan Amount

$500,000 to $10,000,000+Childcare centers and daycare buildings

Loan purpose

Purchase, rate-and-term, cash outYou can buy, refinance, or take cash out

Maximum LTV

75%Including purchase, refinance, and cash out

Loan Term

5 to 30 yearFor qualifying loans

Minimum DSCR

0.9From $500K to $3M. 1.25x on $3M+.

Min DSCR on loans of $3M+

1.25xWhen the loan is $3M or more, rent has to cover at least 125% of the payment.

Income

Lease or operating income

Paperwork

No tax returns, in many casesWe qualify on the building, not your personal income

Property Seasoning

As low as 1 dayNo 6 month wait on most cash out loans

Operator

Franchise or independentTrack record reviewed

Prepay

None to step-downSome loans of $1M and up have no prepayment penalty

Licensing

State childcare license and capacity reviewed

Building

Purpose-built or converted

Available in

35 statesAL, AK, AR, CO, CT, DE, FL, GA, HI, IL, IN, IA, KS, KY, LA, ME, MD, MA, MS, MO, MT, NE, NH, NM, OH, OK, PA, SC, TN, TX, VA, WA, WV, WI, WY, DC. Very rural areas within these states may be restricted.

Want a number on a specific building?

These are typical ranges. Send the address and we will send back terms on your deal.

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Common questions

Daycare DSCR FAQ

Do daycare DSCR loans require tax returns?+

In many cases no. The loan is based on the lease or the property's income, not your personal tax returns.

Does a franchise operator help?+

Yes. A national childcare franchise on a long lease is a strong tenant. Established independent operators with years in the same location are a strong fit too.

Does licensed capacity matter?+

Yes. The state license sets how many children the center can serve, which drives the operator's revenue and their ability to pay rent. A center operating near its licensed capacity is a good sign.

Can I finance a daycare I operate?+

This program is for investment property with a lease or operating income. If your center leases the building from a separate entity you own, send the details and we'll tell you whether it fits.

What if the building was converted from another use?+

Converted buildings are considered. Purpose-built centers are the most common fit, but a converted building with a proper license and an established operator can work.

How is operating income counted?+

When the building owner also runs the center, the income is based on the center's operating history. Expect to share a few years of financials so the income can be confirmed.

Where does Capituro offer daycare DSCR loans?+

In 35 states: Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Mexico, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, and Wyoming, plus Washington, DC. Very rural areas within these states may be restricted. Send the address and we will confirm whether your market and building fit.