Traditional mortgage rules don’t always match how an investment property actually performs. This is especially true when your income is complicated. DSCR loans take a different route. They look at the rental income and whether the property can cover its own debt payments.
This structure can be used for purchases, refinances, and eligible cash-out transactions on rental properties. But not every DSCR program is built the same. Credit minimums, DSCR ratios, LTV limits, loan sizes, property types, paperwork, rates, and terms can differ quite a bit from one lender to the next. Some focus on certain property types or short-term rentals. Others are more flexible.
We compared seven DSCR lenders based on their investment property financing options, DSCR programs, property coverage, underwriting approach, and tools available to real estate investors.
How to Choose the Best DSCR Lenders
DSCR financing can be compared across more than the advertised rate. Property characteristics, investment strategy, borrower profile, and individual program requirements can all affect the available financing. Comparison factors include:
- Strategy Fit: Purchase, refi, or cash-out.
- Qualifiers: DSCR, credit, and LTV limits.
- Property: Single-family, condos, and STRs.
- Costs: Rates, closing fees, and penalties.
- Tools: Calculators for real-time scenario analysis.
- Paperwork: Know the required rental and borrower docs early.
7 DSCR Lenders for Investment Properties
We selected these seven based on their DSCR lending capabilities, investment property financing options, and approaches to evaluating rental income and property cash flow. Each lender offers programs designed for real estate investors, with options varying by property type, borrower qualifications, loan terms, and documentation requirements.
These providers offer financing for investment properties ranging from single-family rentals to eligible short-term rental properties.
1. Easy Street Capital
Easy Street Capital provides real estate investment financing, including programs for short-term rental properties. Its underwriting can incorporate property-level data and AirDNA projections when evaluating eligible short-term rental scenarios.
Easy Street also handles servicing and construction draw management internally. Its broader real estate investment lending business covers several property strategies in addition to rental financing.
| Attribute | Detail |
| Key Consideration | Short-term rental financing and eligible cash-out refinance scenarios |
| Notable Edge | AirDNA data may be used for eligible STR scenarios |
| Servicing | In-house, from application to payoff |
2. Newfi Lending
Newfi Lending provides DSCR financing for investors purchasing, refinancing, or accessing equity in investment properties. The company provides financing for rental and investment properties, with DSCR programs designed around factors such as rental income, property cash flow, PITIA, credit score, loan terms, and documentation. This approach can be useful for real estate investors whose income structure may not fit traditional mortgage guidelines.
Newfi offers financing options for investors purchasing, refinancing, or accessing equity in rental properties. Depending on the loan program and borrower qualifications, options may include rate-and-term refinancing and cash-out refinancing. Its investment property and Non-QM programs cover first-time, experienced, portfolio, and self-employed real estate investors, subject to applicable qualification requirements.
Investors can also use Newfi’s free DSCR Calculator and live DSCR Rate Table to evaluate property cash flow, financing scenarios, and current rate information when comparing investment property financing options.
| Attribute | Details |
| Best For | Novice & Experienced Investors |
| Loan Types | Investment property purchase, refinance (rate-and-term, cash-out) |
| Property Coverage | Single-family and small multifamily |
| Minimum DSCR | As low as 0.75 for qualified borrowers |
3. A&D Mortgage, LLC
A&D Mortgage offers Non-QM financing for borrowers and real estate investors using alternative qualification methods.
Its programs include DSCR, Bank Statement, 1099, Asset Utilization, and ITIN financing. These options cover investors and self-employed borrowers whose income documentation may not fit conventional mortgage requirements.
| Attribute | Value |
| Key Consideration | Non-QM financing for investors and self-employed borrowers |
| Loan Programs | DSCR, Bank Statement, 1099, Asset Utilization, ITIN |
4. Angel Oak Mortgage Solutions
Angel Oak Mortgage Solutions offers Non-QM financing that includes DSCR, bank statement, and jumbo loan programs. Its DSCR financing evaluates investment-property scenarios using rental-property cash flow and applicable borrower and property requirements.
Angel Oak also offers additional Non-QM financing options, including programs designed for self-employed borrowers and alternative income-documentation scenarios.
| Attribute | Value |
| Key Consideration | Non-QM financing with alternative income-documentation options |
| Notable Edge | Alternative borrower, income, and property qualification scenarios |
5. Acra Lending
Acra Lending offers Non-QM financing for real estate investors using alternative qualification methods.
The firm’s Non-QM business includes mortgage origination, underwriting, and servicing. Its programs cover DSCR and other alternative-documentation financing scenarios.
Acra’s DSCR financing uses rental-property cash flow as a qualification factor rather than relying solely on conventional employment-income documentation.
| Attribute | Value |
| Best For | Non-QM and DSCR investment-property financing |
| Core Services | Origination, underwriting, servicing, capital markets |
6. RCN Capital
RCN Capital provides real estate investment financing for non-owner-occupied properties, including short-term fix-and-flip loans and long-term rental loans.
For applicable ARV loans, RCN charges interest on the current outstanding balance rather than on holdback funds before they are drawn.
Its financing programs cover fix-and-flip, long-term rentals, bridge loans, ARV, new construction, multi-family, DSCR, and asset-based lending. Its DSCR financing uses property cash flow in qualification rather than conventional W-2 income documentation.
| Attribute | Value |
| Best For | ARV and rental-property financing for real estate investors |
| Loan Types | Fix & flip, DSCR, bridge, new construction, multi-family |
| Aggregate Rating | 4.1/5 |
7. LendingOne
LendingOne is a direct lender offering real estate investment financing based on property and program requirements.
LendingOne offers financing across DSCR rentals, fix-and-flip, fix-to-rent, new construction, build-to-rent, and SFR portfolio scenarios. Its DSCR financing uses rental-property cash flow in qualification rather than conventional employment-income documentation.
| Attribute | Value |
| Key Consideration | Rental and real estate investment financing |
| Loan Programs | Rental, Fix & Flip, Bridge, Construction |
Conclusion
DSCR financing varies by property type, investment strategy, borrower profile, and individual lender requirements. Advertised rates represent only one part of the financing structure.
Comparison factors can include minimum DSCR and credit requirements, LTV limits, loan amounts, property eligibility, fees, prepayment provisions, loan terms, documentation requirements, and available investor tools.
Purchase, rate-and-term refinance, and cash-out refinance scenarios can produce different qualification requirements and financing terms. Modeling the same property’s cash flow across available programs provides a consistent basis for comparing those options.