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1 to 4 Unit Residential DSCR

1 to 4 Unit
DSCR Loans.

30 year fixed and interest only financing for single family rentals, duplexes, triplexes, and fourplexes. Built for long term hold portfolios.

Quote My DealFull Loan Matrix
Program Snapshot
$250K
Min loan
$10M
Max loan
80%
Max LTV
30 yr
Fixed term
As low as 1 day property seasoning on purchase or refi
Often no reserves seasoning on purchases; many refinances need none
Airbnb and VRBO income from market rent forecasts
Close in your LLC, corp, or trust
Program Overview

Built for the
Long Term Hold

Worth Knowing
Airbnb and VRBO Income
Vacation rentals do not need a long-term lease to qualify. We can use income projections from AirDNA.

One to four unit residential is the foundation of most investor portfolios. The program is built around how those deals actually run: 30 year fixed pricing for predictable cash flow, the flexibility to close in an LLC, and an underwriting box that treats the property as the primary credit.

Worth Knowing
As Low as 1 Day Property Seasoning
On most cash out and rate-and-term refinances, we can close with as little as 1 day of property seasoning. On purchase files, reserve funds often do not need seasoning either, which helps when capital was just moved between accounts. If you need either on your deal, mention it when you reach out and we will confirm what is available for your loan.
Loan Matrix

The Numbers, Plainly

Program parameters for DSCR rental financing. Final pricing and structure determined by credit, property, and market underwriting.

Loan Amount
$250,000 to $10,000,000
Max LTV (Purchase)
80%75% on cash out refi, 70% on second homes
Loan Term
30 year fixed5/6 and 7/6 ARM available, 10 year interest only option
Amortization
30 year amortizing10 year interest only option on most files
Prepayment
Step down5/4/3/2/1 standard; shorter terms with rate adjustment
Occupancy
Non owner occupied onlyInvestment property; primary residences not eligible
Minimum DSCR
0.5No ratio program available with adjusted pricing
Property Seasoning
As low as 1 dayOften avoids the typical 6 month cash out wait
Reserves Seasoning (Purchases)
Often noneReserve funds may not need to be seasoned
Reserve Requirement (Refinances)
Often none requiredOften no bank statements needed
Airbnb and VRBO
AirDNA acceptedNo hosting experience required
Minimum FICO
620Top tier pricing at 700 plus
Eligible Borrowers
US citizens, permanent residentsForeign nationals on adjusted matrix
Eligible Entities
LLC, LP, S Corp, C Corp, TrustPersonal guaranty required
Recourse
Personal guarantyNon recourse on case by case for strong sponsors
Note: Matrix represents typical program parameters. Actual terms vary by state, property type, occupancy, and credit profile. Cash out limits, seasoning requirements, and reserves vary by transaction. A formal term sheet will reflect final terms after underwriting.
1 to 4 Unit State Coverage

Where We Close
1 to 4 Unit Residential

State coverage on 1 to 4 unit residential is more limited than on our commercial and 5+ unit programs. The highlighted states are where we are active today. If you do not see your state, talk to an advisor about your specific scenario.

Active for 1 to 4 unit
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Eligible Property

Property Types We Finance

Single Family Rental

Detached single family homes held as long term rentals. Most common DSCR asset.

2 to 4 Unit

Duplexes, triplexes, and quads. Income aggregated across units to calculate DSCR.

Condos and Townhomes

Warrantable and non warrantable condos accepted. HOA fees factored into DSCR calc.

Short Term Rental

Qualify on what the property can earn as a vacation rental, not just a long-term lease. Full market forecast if you host nearby; usually 80% if it is your first in the area.

Planned Unit Developments

PUDs and master planned community homes underwritten the same as detached SFR.

Portfolio (1 to 10)

Cross collateralize multiple rentals under a single DSCR loan for streamlined servicing.

Not eligible: Owner occupied homes, agricultural property, mobile homes on leased land, working farms, raw land.
Confirm your property
Who Uses It

Built for Long Term Holders

DSCR is the workhorse of an investor portfolio. It fits anyone who collects rent and wants permanent debt without conventional documentation overhead.

1

Self employed and business owners

Operators with optimized personal taxes often prefer DSCR over conventional. We price the property, not the 1040.

2

Investors past Fannie 10 limits

Conventional caps you at 10 financed properties. DSCR is portfolio agnostic and scales as fast as you can stabilize new acquisitions.

3

Operators using LLC structures

Close directly in a holding entity, series LLC, or trust. No transfer at closing required, no due on sale risk later.

4

Short term rental operators

Use market rent forecasts for Airbnb and VRBO. Full amount if you already host nearby; usually 80% if you are new to the area. Properties with booking history can use actual income too.

5

Refinance from a hard money exit

Take out short term rehab debt with permanent 30 year financing once the property is leased and stabilized.

How It Closes

Typical Timeline: About 30 Days

01
Week 1

Term Sheet

Submit deal summary and address. Rate, leverage, fees, and timeline back within 24 hours.

02
Week 1 to 2

Application + Appraisal

Sign term sheet, complete the application, order appraisal. Title and insurance kick off in parallel.

03
Week 2 to 3

Underwriting

File reviewed, conditions issued, cleared. Clear to close once appraisal and title are in.

04
Week 3 to 4

Close + Fund

Final docs to title. Wire funded the same day documents are signed.

DSCR Questions

Frequently Asked

What if the property doesn't appraise high enough for the rent to cover the payment?+
We offer pricing tiers down to 0.75 DSCR with rate and LTV adjustments. We also have a no ratio program where we ignore DSCR entirely at lower LTVs. The right structure depends on your goals: minimize down payment, minimize rate, or maximize cash out.
How much do I need to put down on a DSCR purchase?+
20% down minimum on most purchases, which corresponds to 80% LTV. Cash out refinances max at 75% LTV. Stronger DSCR and credit profiles (620 minimum, 700 plus for best pricing) unlock the maximum leverage. Below 1.0 DSCR typically requires 25 to 30% down.
How does cash out work?+
Cash out proceeds can be used for business and investment purposes, such as your next acquisition, renovations, or paying down portfolio debt. Proceeds cannot be used for personal expenses. We can close cash out with just 1 day of property seasoning, with no requirement that reserves funds be seasoned.
Are there reserves requirements?+
Most files require 6 months of PITI in liquid reserves at closing. Larger loan amounts or lower DSCR scenarios may require 12 months. Reserves can be held in checking, savings, brokerage, or retirement accounts. On purchase loans, reserves do not need to be seasoned, so funds moved into the account shortly before close still qualify. Refinance files follow standard seasoning rules.
Do you lend on short term rentals like Airbnb?+
Yes. For Airbnb and VRBO we can qualify the loan on a market rent forecast (AirDNA is the industry standard data source), not only a signed lease. If you already run other short-term rentals in the area, we can often use the full forecast for this property. If it would be your first in that market, we can often use 80% of the forecast. Properties with a track record can qualify on actual booking income instead. Some cities have restrictions. We will confirm when we review your deal.
What is the prepayment penalty?+
Standard structure is a 5/4/3/2/1 step down: 5% of principal year one, 4% year two, and so on. Shorter or zero year prepay options are available with a rate adjustment of roughly 25 to 50 bps depending on structure.
Related Programs

Pair DSCR With Your Next Move

View all programs
Short Term

Fix and Flip

Acquire and rehab, then refinance into DSCR when stabilized.

Speed

Bridge

Close fast on a deal you intend to refinance into DSCR within 12 to 24 months.

5+ Units

Multifamily

Scale from 1 to 4 unit DSCR into 5 plus unit apartment financing.

Get Started

Have a Rental Deal?
Let's Run the Numbers.

Get indicative DSCR pricing, leverage, and timeline in under 24 hours.