What is a DSCR rental loan?
A DSCR loan qualifies on the property's cash flow rather than your personal income. ACP Lending offers 30-year fixed, 5/1 ARM and 7/1 ARM structures with interest-only options, on purchase, rate-and-term refinance and cash-out refinance, with leverage up to 80% LTV and DSCR requirements as low as 0.80× on certain programs.
Long-Term Financing Built Around the Property’s Rental Income
ACP Real Estate Lending helps investors purchase, refinance, and cash out income-producing rental properties. Qualification is primarily based on the property’s debt-service coverage ratio (DSCR)—its ability to generate enough rental income to support the proposed mortgage payment—rather than traditional personal-income documentation.
What are ACP's DSCR loan terms?
| Structures | 30-year fixed, 5/1 ARM, and 7/1 ARM options, with interest-only structures available |
| Transactions | Purchase, rate-and-term refinance, and cash-out refinance programs |
| Qualification | Qualification centered on property cash flow and DSCR—not personal income documentation |
| Maximum LTV | Leverage up to 80% LTV on purchase and rate-and-term refinance; cash-out typically capped closer to 75% |
| Minimum DSCR | DSCR requirements as low as 0.80× on certain programs, with other programs requiring a 1.00× minimum |
| Property types | Single-family rentals, condos, PUDs, townhomes, and 2–4 unit properties |
What We Review
Every transaction is evaluated individually, and available terms vary by capital partner. Depending on the program, credit score requirements can run as low as approximately 640, though many programs require 660 or higher for the best leverage and pricing. Loan amounts generally start around $70,000, with higher amounts considered case by case. Prepayment structures also vary by program—some carry no prepayment penalty after year three, while others use an adjustable prepayment structure of up to five years.
Eligible Transactions
Finance a new rental-property purchase, refinance existing debt, move a completed renovation into permanent financing, or access equity through a qualifying cash-out refinance. Financing is for non-owner-occupied investment properties and generally closes in a business entity.
DSCR Loan FAQ
What is the minimum DSCR required?
Requirements vary by lending program. Some programs allow a DSCR as low as 0.80×, while others require a minimum of 1.00×. The available option depends on the specific program and the overall strength of the file.
What credit score do I need for DSCR financing?
Programs are available with credit scores as low as approximately 640, though many programs require 660 or higher to access the best leverage and pricing.
What's the maximum LTV on DSCR financing?
Up to 80% on purchase and rate-and-term refinance. Cash-out refinances are typically capped lower, generally around 75%.
Is there a prepayment penalty?
It depends on the program. Some DSCR programs carry no prepayment penalty after the third year, while others use an adjustable prepayment structure of up to five years.
What loan amounts are available?
DSCR financing generally starts around $70,000, with higher loan amounts considered case by case depending on the program and the property.
Request a DSCR Loan Quote
Send the property address, estimated value, current or projected monthly rent, requested loan amount, transaction type, and estimated credit score. I will review the opportunity and outline the available leverage and structure.
Steve Waller | ACP Real Estate Lending
[email protected] | 936-522-8951