Investor financing
DSCR loans for long-term rentals
For investors who want to qualify a hold property primarily on rental cash flow, not personal tax returns.
Rockhouse Mortgage compares wholesale DSCR programs for 1-4 unit long-term rentals in Virginia, West Virginia, Maryland, North Carolina, South Carolina, Pennsylvania, and Georgia.
Outside Virginia, Rockhouse Mortgage arranges business-purpose loans on non-owner-occupied investment property only.
How it works
A DSCR loan looks at whether the property’s qualifying rental income can support the proposed monthly housing payment. Personal W-2 income is not the primary qualifying method on these programs.
That structure is commonly used when an investor holds rentals in an entity, has tax returns that do not reflect property cash flow, or wants the file focused on the asset.
Rockhouse Mortgage is a mortgage broker, not a direct lender. We compare DSCR structures across wholesale lenders for the property in front of us.
DSCR = qualifying monthly rental income ÷ proposed monthly PITIA
For illustration only: if a lender uses $3,000 in qualifying monthly rental income and the proposed monthly PITIA is $2,500, DSCR would be 1.20. That figure is a calculation example, not a minimum. Lenders set their own DSCR thresholds, and some programs may consider lower or higher ratios depending on the rest of the file.
What lenders look at
- Credit profile and overall file strength
- Reserves and liquidity available after closing
- Property type, location, and condition
- Rental income method and occupancy
- Borrower or entity experience with similar properties
Eligible properties
- 1-4 unit residential investment properties
- Single-family homes, townhomes, and condos where the program allows them
- Long-term rented properties with in-place leases or market-rent support
Leverage, vesting, and payment options
DSCR purchases may go up to 80% LTV. Higher leverage, when offered, depends on the rest of the file.
LLC vesting is available on eligible programs. Interest-only options are available on some programs.
There is no single credit-score, reserve, or DSCR figure that applies to every loan.
Want help comparing programs?
Rockhouse Mortgage compares wholesale lender programs for the scenario in front of us. Start with a call or an online application.
Frequently asked questions
Does DSCR use my personal tax returns?
DSCR programs generally start with the property’s rental income versus the proposed housing payment. Some programs may still request personal documents. DSCR is not a guaranteed no-documentation product.
Can the loan close in an LLC?
LLC vesting is available on eligible programs, subject to entity documents and lender overlays. It is not guaranteed on every DSCR loan.
Are interest-only payments available?
Interest-only options are available on some DSCR programs. Availability depends on the lender, the property, and the rest of the file.
What leverage is typical on a DSCR purchase?
DSCR purchases may go up to 80% LTV, with the rest of the file — credit, reserves, property type, and DSCR — affecting the structure that is actually available.
Is this the same as a short-term rental DSCR loan?
Long-term rental DSCR files usually use in-place leases or market rent. Short-term rental income methods can differ. See our DSCR short-term rental page if the property is an Airbnb or similar use.
Compare DSCR options for your rental
Share the property, rent, and how you plan to hold it. We can narrow DSCR structures before you complete a full application.
703-999-0903Loan programs, rates, fees, terms, and eligibility requirements are subject to change without notice. All loans are subject to credit, income, asset, property, and underwriting approval. This information is for educational purposes only and is not a commitment to lend.
Rockhouse Mortgage, LLC · NMLS #2469785 · Harry Hager, NMLS #647108 · Licensed by the Virginia Bureau of Financial Institutions · Outside Virginia, business-purpose investment property loans only · Equal Housing Opportunity