Rental loans · investment property

DSCR loans for rental property, qualified on what the property earns.

A DSCR loan is a 30-year loan on a 1–4 unit rental, sized from the property's rent and its monthly payment instead of your tax returns. United Lending offers them nationwide, fixed or adjustable, for a purchase or a cash-out refinance, in your own name or an LLC.

Get DSCR terms Run your DSCR

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About a minute
A loan officer calls you

How the loan is sized

One ratio decides it: monthly rent against the monthly payment.

DSCR stands for debt service coverage ratio. Add up what the new loan will cost each month once taxes, insurance and any association dues are folded in (lenders call that PITIA), then divide the rent by it. A result of 1.00 means the rent exactly covers the bill. Above 1.00 the tenant is paying you a cushion; below it, you are topping up the payment yourself.

Because the property carries the loan, the file is built around the rental, and personal income verification isn't required: no pay stubs, W-2s or tax returns. Expect to talk about the lease or expected rent, the property's value, your credit and the cash you're bringing, and we'll tell you on the call how much we can lend against it. We lend up to 85% of the price on a purchase and up to 80% of the value on a cash-out refinance, with credit scores from 620 and a DSCR from 0.75. Those are separate limits, not one combined offer: the top leverage goes to stronger credit and rent coverage, and a lower score or ratio means lower leverage.

The loan runs 30 years, with fixed and adjustable options, on single-family houses and 2–4 unit buildings. You also choose the prepayment term, from none up to five years. If you might sell or refinance within a few years, say so on the call and we'll match the prepayment term to your plan before you commit. The loan can be in your own name or an LLC.

The worked example is a duplex with made-up but realistic round numbers. Two units at $1,050 bring in $2,100 a month. Against a $1,638 payment the ratio is 1.28, which means about $462 a month of rent left over before vacancy, repairs and management. Run your own deal through the DSCR calculator before you call, and bring the result.

DSCR = monthly rent ÷ (principal + interest + taxes + insurance + HOA)

Rate moves the ratio. On the same duplex, a rate one point higher (8.25% in place of 7.25%) adds about $124 to the monthly principal and interest and drops the ratio from 1.28 to about 1.19.
Break-even rent is the payment itself. That duplex needs $1,638 a month to reach 1.00, so a $2,100 lease leaves room for a soft month.
The ratio uses gross rent. Vacancy, turnover, repairs and property management all come out of the cushion, so treat 1.00 as break-even on paper only.
Under 1.00 isn't automatically a no: our minimum is 0.75. Expect lower leverage the further the ratio drops below 1.00.

Worked example

ILLUSTRATIVE · DUPLEX PURCHASE

Rent: two units × $1,050: $2,100
Principal & interest: $180,000 at an example 7.25%, 30-year amortization: $1,228
Property taxes: $260
Insurance: $150
HOA dues: $0
Monthly payment (PITIA): $1,638

DSCR: 2,100 ÷ 1,6381.28

Illustrative numbers, not market data or a quote. The $240,000 price, the $180,000 loan (75% of price, inside our 85% purchase limit), the 7.25% rate and the 30-year amortization were picked to show the arithmetic; your rate, leverage and loan terms are quoted on your call.

What we look at

What we publish up front, and what we size on the call.

These are the limits United Lending publishes today, all subject to appraisal and underwriting. They're separate limits, not one combined offer: the highest leverage goes to stronger credit and rent coverage. Anything not listed is set on your actual deal, in a short call before you spend money on an appraisal.

Purchase: Up to 85% loan-to-value.
Cash-out refinance: Up to 80% loan-to-value.
Loan term: 30 years, with fixed and adjustable options.
Property: 1–4 unit residential rentals: single-family houses and 2–4 unit buildings.
Income: No personal income verification. The property's rent against its payment qualifies the loan.
Credit score: 620 minimum. A lower score means lower leverage.
Minimum DSCR: 0.75. Below 1.00 the rent doesn't cover the full payment, so expect lower leverage.
Loan amount: From $75,000.
Prepayment: Your choice of prepayment term, from none up to five years, set out in your written terms before you commit.
Borrower: Close in your own name or through an LLC or other entity.
Occupancy: Investment property only. Business-purpose loans; never a primary residence or a house your family occupies.
Where: Nationwide; most of our loans are in New York, New Jersey and Florida. Tell us the property's state and we'll confirm we can lend there.
Rate and points: Discussed on your call.

Application to closing

From rent figure to closing table.

Run the ratioPut the rent, taxes, insurance and a test rate into the DSCR calculator. It shows where your deal sits before anyone pulls credit.
Send the deal or callUse the form on this page or ring (718) 704-0499. Tell us the address, the price or current loan, and the rent.
Get your exact numbersA 10-minute call sets the leverage, rate, loan terms and prepayment option we can offer on that property.
CloseAppraisal, title and insurance run side by side. Have the lease, insurance contact and any entity paperwork ready and they move together.

Who it's for

Built for investors who rent out what they buy.

Investors buying a rentalUp to 85% of the price on a purchase, sized on what the property rents for.

Owners pulling cash outRefinance a rental you own and take cash out, up to 80% of its value.

Flippers who decide to holdFinished a rehab with one of our fix and flip loans and the rent beats the sale? Move it onto a long-term rental loan.

Out-of-state buyersLive in one state and buy rentals in another? We lend nationwide, so the property's market and yours don't have to match.

Investors who own through an LLCClose in your own name or in your LLC or other entity, whichever fits how you hold property.

Holders planning a shorter runExpect to sell or refinance within a few years? Pick a short prepayment term or none at all.

Where we lend

DSCR loans by state

We lend nationwide. These states have their own pages, with local markets and things to check before you buy.

Get your terms

Tell us about the rental. We'll size the loan on its rent.

Contact details first, then single-tap answers on the property, the amount and when you need to close. A loan officer phones you back with terms.

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A loan officer calls you back
Investment property only

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United Lending LLC offers business-purpose financing secured by non-owner-occupied investment real estate. We do not offer loans for personal, family or household purposes, or loans on owner-occupied primary residences.

Questions

DSCR loans: common questions

What is a DSCR loan?

It's a rental-property loan qualified on the property's rent. DSCR, the debt service coverage ratio, compares the monthly rent with the full monthly payment. United Lending's DSCR loans are 30-year loans on 1–4 unit rentals, fixed or adjustable, up to 85% of the price on a purchase and 80% of the value on a cash-out refinance, with loans from $75,000.

How do I calculate DSCR?

Divide the monthly rent by the monthly payment, counting principal, interest, property taxes, insurance and HOA dues. On our illustrative duplex, $2,100 of rent against $1,228 of principal and interest, $260 of taxes and $150 of insurance gives 2,100 ÷ 1,638 = 1.28. The DSCR calculator does it for you.

What DSCR do I need to qualify with United Lending?

The minimum is 0.75. A property at or above 1.00 pays its own way; below 1.00 you cover part of the payment every month, and the lower the ratio, the lower the leverage we can offer. We go over where your ratio lands, and the leverage that goes with it, on the call.

What leverage do your DSCR loans offer?

Up to 85% of the price on a purchase and up to 80% of the value on a cash-out refinance, with loans from $75,000. Those are separate limits, not one combined offer: the top leverage goes to borrowers with stronger credit and a property whose rent covers the payment comfortably, and a lower score or ratio means lower leverage.

Do you need my tax returns or pay stubs?

No. Personal income verification isn't required on our DSCR loans. The property's rent measured against its monthly payment qualifies the loan, along with your credit, the property's value and the cash you bring.

What properties and terms do your DSCR loans cover?

Single-family rentals and 2–4 unit buildings, on a 30-year term with fixed and adjustable options. Five units or more goes to our multifamily and commercial financing, quoted deal by deal.

What credit score do I need?

620 at minimum. Credit also moves the leverage and the rate, so give your best estimate on the form; nothing is pulled when you send it.

Is there a prepayment penalty on a DSCR loan?

It's your choice. Our DSCR loans come with prepayment terms from none up to five years, and the one you pick is set out in your written terms before you commit. If you might sell or refinance within a few years, tell us on the call.

Does a DSCR loan have to be in my own name?

No. It can be in your own name or an LLC or other entity, whichever you prefer. Tell us on the form how the property will be owned and your loan officer will list the entity documents to have ready.

Could I live in the property I finance with a DSCR loan?

No. Everything United Lending offers is business-purpose financing for investment property the owner doesn't occupy. If you, your spouse or your family plan to live there, even part of the year, you need an owner-occupied mortgage from a residential lender instead.