Everything You Need to Know

DSCR stands for Debt Service Coverage Ratio. It is a loan product that qualifies you based on the property’s rental income divided by its monthly mortgage payment (principal, interest, taxes, insurance). If the property’s rent covers the mortgage, it qualifies. No W-2s, no tax returns, no personal income verification.

Most DSCR programs require a minimum 660 credit score. The best rates start at 740+. If your personal score is below 660 but you are borrowing through an LLC, you may still qualify if a majority owner (51%+) meets the 660 minimum. Your credit score affects your rate and maximum LTV, but the property income is what drives qualification.

Down payment requirements depend on the loan type. Purchases are available up to 85% LTV (15% down). Rate and term refinances go up to 85% LTV. Cash-out refinances are available up to 75% LTV after 6 months of ownership, with limited cash-out options as early as 3 months. The more equity you bring, the better the rate.

Yes. DSCR loans close directly in the name of your LLC, trust, or corporation. This is one of the biggest advantages over conventional financing, which requires personal ownership.

Single-family residences (1-4 units) are our primary loan program. We also offer a separate program for 5-10 unit residential properties with specific guidelines. Short-term rentals (Airbnb, VRBO) qualify as well. The property must be a residential investment property. We do not finance commercial properties, mixed-use properties, or rural properties. Primary residences and second homes do not qualify.

You will need to show 6 months of PITI (principal, interest, taxes, insurance) cash reserves in an accessible account. This can include checking, savings, IRA, 401k, or similar accounts that you have access to.

Yes. You must have owned an investment property for at least 12 months within the last 3 years. If you do not have investment property history but own your primary residence, 12 months of on-time mortgage payments on your primary can be used to qualify.

DSCR = Monthly Rent (adjusted for vacancy) divided by Monthly PITIA (principal, interest, taxes, insurance). A DSCR of 1.25 or higher is considered strong. Ratios between 1.00 and 1.25 qualify conditionally. Some programs accept ratios as low as 0.75.

Most DSCR loans close in 10 to 21 days. Because there is no income underwriting, the process is significantly faster than conventional loans, which typically take 30 to 45 days.

No. DSCR loans have no property count limit. Traditional lenders cap your property count or loan amount. With DSCR, you can finance 5, 20, or 50+ properties.

Most traditional lenders limit rental property loans to 15 or 20-year terms, which reduces your monthly cash flow. DSCR loans offer 30-year fixed-rate amortization, keeping your monthly payment lower and maximizing your cash flow from day one.

Yes. A cash-out refinance through a DSCR loan lets you tap into your property’s equity while keeping the property. You maintain long-term appreciation, tax benefits, and rental income, and your tenants continue covering the debt service.

RentRefi serves investors in Missouri, Illinois, and Kansas as our primary markets. We can also work with investors in most other states. The only states we cannot serve are Nevada, South Dakota, and North Dakota.