The best debt service coverage ratio (DSCR) lenders stand out less for their rates and more for their reputation, reliability, and customer service. With more companies buying non-qualified mortgages (Non-QM) than ever, competition has driven loan terms and interest rates closer together across the board. Thus, what sets leaders in the industry apart now is how consistently and smoothly they can guide investors of all experience levels through their loan process.
Here’s a quick overview of the lenders included in this guide and the distinct circumstances where each excels:
| Kiavi | High volume investors | |
| American Heritage Lending | High LTV loans | |
| RCN Capital | Starting interest rates | |
| Easy Street Capital | Coverage area | |
| Lima One Capital | Creative investors | |
| OfferMarket | Investors in a hurry |
At the heart of all the loan products detailed in this guide is the debt service coverage ratio (DSCR). The DSCR is to the rental property investor what the debt-to-income ratio (DTI) is to traditional home buyers.
DSCR loans allow real estate investors to finance rental properties based on the cash flow of the properties themselves, without any consideration given to the investor’s ability to show personal income, or lack thereof — a feature I expect all self-employed real estate professionals can appreciate.
- Best DSCR lenders at a glance
- Kiavi: Best for high volume investors
- American Heritage Lending: Best for high LTV loans
- RCN Capital: Best starting interest rates
- Easy Street Capital: Best coverage area
- Lima One Capital: Best for creative investors
- OfferMarket: Best for investors in a hurry
- Methodology: How I chose the best DSCR lenders
- Frequently Asked Questions (FAQs)
Best DSCR lenders at a glance
| Minimum DSCR considered | Max LTV | Interest rate | Instant Quotes Available | |
|---|---|---|---|---|
| Kiavi | 1.1 | 80% | as low as 5.75% | Yes |
| American Heritage Lending | 0.75 | 85% | Doesn’t publish its rates | Yes |
| RCN Capital | 1.0 | 80% | as low as 5.25% | No |
| Easy Street Capital | None | 80% | as low as 5.75% | No |
| Lima One Capital | 1.0 | 80% | as low as 6% | Yes |
| OfferMarket | 1.0 | 80% | as low as 5.88% | Yes |
Kiavi: Best for high volume investors
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| Pros | Cons |
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| Interest rate | As low as 5.75% |
| Loan amount | $100,000 to $3 million |
| Minimum DSCR | 1.1 |
| Minimum credit score | 660 |
| Max LTV (purchase, refinance, cash-out) | (80%, 80%, 80%) |
| Prepayment penalty options |
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| Amortization options |
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| Interest only available | Yes |
Why I like Kiavi
When you’re rapidly growing your rental portfolio, tracking multiple loan applications can become unnecessarily tedious. The ideal solution would be a single portal where you could log in and see the status of all your active loans, start new applications, and even submit documents as requested — which is the exact feature that Kiavi, the top lender in this guide offers.
Kiavi, whose name is based on the phonetic spelling of the Italian word for ‘key’, was originally founded in 2013 as LendingHome. Since rebranding in 2021, it has invested in technology aimed at streamlining and creating transparency in its DSCR loan process. Investors who do multiple deals a year will especially benefit from its centralized loan portal, streamlined underwriting, and lightning-fast time to close.
Standout features
- Online portals: Kiavi enables investors to secure pre-qual letters 24/7, start new loan applications, manage documents, and track the status of all their loans with Kiavi from a single centralized portal.
- Dedicated support: Each investor, regardless of experience level, is assigned a dedicated account manager providing you with a single point of contract from application to closing. Investors doing 30+ deals a year are also assigned dedicated loan analysts, underwriters, and draws analysts.
American Heritage Lending: Best for high LTV loans
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| Pros | Cons |
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| Interest rate | Not disclosed |
| Loan amount | $75,000 to $2 million |
| Minimum DSCR | 0.75 |
| Minimum credit score | 640 |
| Max LTV (purchase, refinance, cash-out) | (85%, 80%, 75%) |
| Prepayment penalty options |
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| Amortization options |
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| Interest only available | Yes, for the first 10 years |
Why I like American Heritage Lending
American Heritage Lending’s DSCR product stands out for its high loan-to-value ratio (LTV) of 85% — making it the only DSCR lender on this list that advertises its willingness to loan above 80% LTV. On top of that, American Heritage Lending has been in business nearly twice as long as most of its competitors. In that time, it has built a reputation, particularly among loan originators, for competitive rates and dependability.
📌 Pro Tip
While it doesn’t technically provide a consumer-facing quote generator — a Google search for “American Heritage Quick Pricer” will reveal the next best thing, a broker pricing tool that I often use to take the temperature of the market. Hopefully, it won’t put the tool behind a login screen if we all start using it.
Standout features
- 85% LTV: For highly qualified buyers, American Heritage will go up to 85% loan-to-value on purchases — that extra 5% can be the deciding factor in today’s ultra-competitive real estate market.
- 40-year loans: American Heritage also offers 40-year fixed terms with a 10-year interest-only period up front.
RCN Capital: Best starting interest rates
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| Pros | Cons |
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| Interest rate | As low as 5.25% |
| Loan amount | $70,000 to $1.5 million |
| Minimum DSCR | 1.0 |
| Minimum credit score | 660 |
| Max LTV (purchase, refinance, cash-out) | (80%, 80%, 75%) |
| Prepayment penalty options | These only apply to its 30-year fixed loan:
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| Amortization options |
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| Interest only available | Yes |
Why I like RCN Capital
RCN Capital, launched in 2010, is another DSCR lender well known among loan originators. At 5.50%, its advertised base interest rate is the lowest in the space right now, which makes sense when you consider that it also has the highest minimum credit score and loan amount requirements. I think the message is clear enough: it’s targeting well-qualified investors — and is willing to offer top-tier rates to attract them.
Standout features
- Highly competitive rates: At risk of sounding like a broken record here, RCN’s clear standout feature right now is its base interest rate at 5.25%.
- 10-year adjustable rate: RCN offers a 10/1 adjustable rate DSCR loan with no prepayment penalties, which is an attractive product considering the length of time most investors tend to hold rentals.
Easy Street Capital: Best coverage area
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| Pros | Cons |
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| Interest rate | As low as 5.75% |
| Loan amount | $100,000 to $3.5 million |
| Minimum DSCR | None |
| Minimum credit score | 640 |
| Max LTV (purchase, refinance, cash-out) | (80%, 80%, 75%) |
| Prepayment penalty options |
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| Amortization options |
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| Interest only available | Yes, for the first 10 years |
Why I like Easy Street Capital
Founded in 2016, Easy Street Capital has quickly made a name for itself as one of the nation’s leading lenders specializing in DSCR loans, with over $500 million funded across 1,500+ DSCR loans in the past two years. Its DSCR loan product — branded as “EasyRent” — is a 30-year product that covers cash-flowing properties up to 10 units in nearly all 50 states.
While it lags behind some of the other lenders on this guide in terms of consumer-facing technology, its rates and loan terms are as competitive as they come. Plus, it’s built a reputation on reliability.
Standout features
- Direct lender: Easy Street Capital is a direct lender, meaning it lends its own capital rather than acting as an intermediary. In my experience, this increases certainty of execution, since everyone’s under the same roof.
- Short-term rental friendly: Easy Street uses AirDNA data to underwrite and qualify short-term (STR) properties. This allows investors in vacation rental markets to maximize loan eligibility.
Lima One Capital: Best for creative investors
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| Pros | Cons |
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| Interest rate | As low as 6% |
| Loan amount | $85,000 to $2.5 million |
| Minimum DSCR | 1.0 |
| Minimum credit score | 660 |
| Max LTV (purchase, refinance, cash-out) | (80%, 75%, 75%) |
| Prepayment penalty options |
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| Amortization options |
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| Interest only available | Yes, for the first 5 years on 30-year loan |
Why I like Lima One Capital
Lima One Capital does the best job of maintaining an up-to-date stable of DSCR loan products tailored to the most popular investment strategies of the day. Years ago, that meant products designed for the BRRR strategy; today, it takes the shape of products custom-built for short-term rentals. The availability of these specialty products, alongside its more traditional single-family rental loan, makes it a particularly attractive DSCR lender for investors who like to get creative with their investment strategies.
It should be noted that the loan terms referenced above are for its standard DSCR loan. The niche DSCR programs, like the short-term rental loan, have their own terms, which you can find on its website.
Standout features
- STR specific product: Lima One has come up with a customized program that uses specialized underwriting backed by AirDNA and other sources, which results in stronger DSCR ratios, higher LTVs, and better terms.
- Close loans quick: Lima One has been known to advertise its ability to close in 7 to 10 days. In reality, it’s probably not safe to assume it can regularly come through in under 3 weeks, but it tries harder than most.
OfferMarket: Best for investors in a hurry
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| Pros | Cons |
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| Interest rate | As low as 5.875% |
| Loan amount | $55,000 to $3 million |
| Minimum DSCR | 1.0 |
| Minimum credit score | 680 |
| Max LTV (purchase, refinance, cash-out) | (80%, 80%, 75%) |
| Prepayment penalty options |
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| Amortization options |
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| Interest only available | Yes, 10-year interest only available on 30-year loan |
Why I like OfferMarket
Launched in 2020, OfferMarket positions itself as a vertically integrated, tech-first platform tailored for real estate investors who want to move fast. By simply filling out a straightforward questionnaire on its website, you can get a DSCR loan quote in under 2 minutes with no credit pull and no waiting around for a salesman to call you. Its transparency of terms and commitment to simplifying processes make it ideal for busy investors, and it’s the lender I’m keeping my eyes on the most.
Standout features
- Instant DSCR loan quotes: Go to the OfferMarket website, and you’ll immediately be offered a DSCR loan quote that “takes 1 minute” to receive and doesn’t pull credit. This is great for investors looking to run real numbers on a deal without subjecting themselves to sales calls for the next decade.
- Loan term transparency: Even without requesting an instant quote, you can get all the information you need to complete an analysis from the OfferMarket website. It transparently posts percentages, ranges, and flat-fees for every cost associated with its loans. That’s something I actually wish more lenders would follow suit on.
Methodology: How I chose the best DSCR lenders
The following methodology was used to select and sort the DSCR lenders on this list in an effort to remove as much bias as possible while remaining useful to someone seeking guidance. Criteria are ordered by relative importance:
- Reputation in industry: I began by selecting a group of lenders who are trusted and have proven themselves to be partners real estate professionals can rely upon to get deals closed.
- Quick quotes: Rates and terms are changing constantly. That is why the best lenders make it simple to apply and receive up-to-date information regarding present loan terms.
- Technology integration: More and more lenders are investing in centralized platforms that save investors time and bring much-needed transparency to the often opaque loan process. I believe this is a positive, and I showed preference to those who are leading this push.
- Rate and terms: At the end of the day, we all want the best interest rate and loan structure we can get, given the present market conditions and our unique situation.
- Availability: For the most part, all the lenders on this list provide some type of service nationwide; however, a few, like Easy Street Capital, do edge out the rest in terms of coverage area — and when all else was equal, they got a boost for it.
Frequently Asked Questions (FAQs)
The short answer is yes. OfferMarket, in particular, advertises that they’ll go as low as $55,000 — the caveat being the property needs to appraise for at least $100,000 still. However, in my experience, while it’s often not advertised, it’s typically not difficult to find a lender willing to make a case-by-case exception, especially if it means establishing a relationship with a client likely to close multiple loans a year. In these cases, I’d suggest reaching out to some local brokers with experience doing DSCR loans; they’ll be most likely to be able to efficiently connect you with the right local lender.
When you see something like (3, 2, 1) or “3-2-1” on a term sheet, that’s shorthand for how many years the prepayment penalty lasts and how much the penalty is each year. For example, a “3-2-1” means if you pay the loan off in year one, the penalty is 3% of the loan balance, in year two it’s 2%, and in year three it’s 1%. After that, there’s no penalty.
In some cases, you may see lenders simply use the term “step down.” That simply means that the penalty would decrease by 1% each year until there’s no more penalty. So a “5-year step down” means the same thing as the notation (5, 4, 3, 2, 1).
The most common reason is that lenders often use more conservative assumptions than investors do when running the math. They might “haircut” your rental income by a percentage, assume longer vacancies, or include expenses like management fees even if you self-manage. This is an especially prevalent issue for short-term rentals, which are often able to pull in more income each month than a standard long-term rental, but may be priced at prevailing long-term rental market rates by lenders who haven’t developed a specialized underwriting process for short-term rentals.