Long-Term Rental Loans Using 'DSCR' Debt Service Coverage Ratio
Call it what you want, private, hard money or asset-based loans; NSS Lending can help you finance the purchase of residential and commercial real estate based on the debt service coverage ratio or DSCR; not your personal income. Many regions of the country, home prices have risen sharply making homeownership unaffordable for many potential buyers. More than ever, many people are choosing to rent a home instead of purchase. That is good news (and favorable data) for the rental loan market, now primed for investment opportunities in 2026 and beyond.
How Much Can I Finance With a DSCR Loan?
Finance up to 80% of the purchase price
Starting at $50K
Minimum DSCR >.75
Minimum credit score >620
No deferred maintenance
Alternatively, you can finance up to 85% of the purchase price if..
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A single family home, condo, townhome or 2-4 units
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Your credit score is >720
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You own two or more rental properties for 24 months
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The property has a DSCR of >1.35
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The loan amount is > $100,00
You can finance up to 90% of the purchase price of the property, if ...
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The seller (or anyone for that matter) is willing to finance a 2nd position lien for a minimum of 3 years for up to 45% of the value of the property. You would be required put down a minimum of 10% plus closing fees.
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Property is a single family, condo, townhouse, 2-4 units, 5+ multi-family
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Loan amount is >$75K
5+ Multi-Family
Starting at $100K
Up to 75% LTV
Minimum credit score 650
Must Be 70% occupied
No deferred maintenance
What if my credit score is not so great?
With a FICO score of 600, you can get up to 60% of the appraised value, but once you fall below 600, then the most you can access is 50% of the appraised value.
Commercial
Conventional and
SBA Loans
Starting at $100K
Minimum credit score 650
70% occupied or owner ocupied
No deferred maintenance
(SBA loans require full documentation)
