Choosing the best DSCR lender involves more than comparing interest rates. You’ll also want to consider qualification requirements, maximum loan-to-value (LTV) ratios, closing timelines, prepayment penalty options, and whether a lender supports your investment strategy, whether you’re financing a long-term rental, short-term rental, or expanding an existing portfolio.
The lenders below offer competitive DSCR loan programs for a variety of investment goals. Some specialize in fast closings, while others stand out for flexible qualification requirements, higher LTVs, or investor-focused technology. Comparing these features can help you find the lender that’s the best fit for your next investment property. That said, here are my top picks:
| Provider | ||
|---|---|---|
| Kiavi | ||
| American Heritage Lending | ||
| RCN Capital | ||
| Easy Street Capital | ||
| Lima One Capital | ||
| New Silver |
Methodology: How I chose the best DSCR lenders
When reviewing DSCR lenders, I focused on the factors that matter most to real estate investors, including loan terms, qualification requirements, and the overall borrowing experience. Each recommendation was selected based on its ability to provide competitive financing while supporting different investment strategies and borrower needs.
Here’s what I considered:
- Loan terms: I compared interest rates, loan amounts, maximum LTVs, minimum DSCR requirements, repayment options, and prepayment penalties to identify lenders offering competitive financing.
- Qualification requirements: I looked at minimum credit score requirements, borrower eligibility, and the flexibility of each lender’s underwriting process. Preference was given to lenders offering programs for a variety of investor profiles and property types.
- Investment property options: I prioritized lenders that support multiple investment strategies, including long-term rentals, short-term rentals, portfolio properties, and cash-out refinances.
- Application experience: I evaluated how easy it is to request a quote, apply for financing, upload documents, and track a loan through closing. Lenders with transparent online tools and straightforward application processes received higher marks.
- Availability and flexibility: I considered where each lender operates, the types of properties it finances, and any features that make the program more adaptable, such as interest-only options, higher LTVs, or specialized underwriting for certain property types.
Why you can trust The Close
My background working in commercial real estate lending gives me firsthand knowledge of what to look for when evaluating lenders, loan terms, and financing options. My recommendations are based on extensive research, careful comparison of each provider’s rates, qualifications, loan products, customer experience, and reputation, along with our editorial review process to ensure accuracy and objectivity.
- 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 for coverage area
- Lima One Capital: Best for creative investors
- New Silver: Best for fast online approvals
- Frequently asked questions (FAQs)
Best DSCR lenders at a glance
| Provider | ||||
|---|---|---|---|---|
| Kiavi | ||||
| American Heritage Lending | ||||
| RCN Capital | ||||
| Easy Street Capital | ||||
| Lima One Capital | ||||
| New Silver |
Kiavi: Best for high-volume investors
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| Pros | Cons |
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| Interest rate | As low as 5.875% |
| Loan amount | $100,000 to $3 million |
| Minimum DSCR | 0.8 |
| 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
Kiavi is a strong option for investors who expect to finance multiple rental properties and want an easier way to compare and manage their loans. Its online platform provides visibility into the financing process and allows borrowers to compare loan structures before applying. Investors can adjust factors such as the loan amount, LTV, and prepayment terms to see how each option may affect the rate and monthly payment.
The platform is useful even for newer investors, but Kiavi offers additional benefits for those operating at a higher volume. Qualified investors can access its Enterprise Program, which includes personalized pricing, expedited closings, and support from a dedicated account team. This gives experienced investors a financing process that can better accommodate a steady pipeline of properties.
Standout features
- Online loan tools: Kiavi allows investors to review financing scenarios, generate prequalification documents, upload requested documentation, and monitor loan progress through its online platform. The added ability to compare different loan structures can help investors estimate costs before committing to a particular option.
- High-volume investor program: Investors who meet Kiavi’s Enterprise Program requirements can receive support from an account manager, loan analyst, underwriter, and draws analyst. The program also provides access to premium pricing and faster processing based on the investor’s experience and transaction volume.
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 | 660 |
| 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 is worth considering if minimizing your down payment is a priority. Its DSCR program offers financing of up to 85% LTV, which may allow qualified investors to preserve more cash for closing costs, property improvements, or another investment opportunity.
The lender also provides more flexibility than a standard 30-year rental loan. Depending on the borrower and property, available structures may include 40-year terms, interest-only payments, and adjustable rates. American Heritage Lending will also consider DSCRs as low as 0.75, which can be useful when a property’s current rental income does not fully cover the proposed debt payment. Keep in mind that lower-DSCR and higher-LTV loans generally require stronger qualifications and may carry less favorable pricing.
Standout features
- Financing up to 85% LTV: Qualified borrowers may be able to finance as much as 85% of a property’s purchase price. This reduces the initial equity requirement compared with DSCR programs capped at 80% LTV, though the maximum available financing will depend on factors such as credit, property cash flow, and investor experience.
- Flexible repayment structures: American Heritage Lending advertises 30-year fixed, 40-year fixed, interest-only, and adjustable-rate DSCR options. These choices give investors more room to select a payment structure that reflects their expected cash flow and holding period.
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 is a practical choice for investors who want competitive starting rates along with several ways to structure the loan. Its long-term rental program includes fixed-rate, hybrid adjustable-rate, and interest-only options, allowing borrowers to select terms based on their expected cash flow and how long they plan to hold the property.
The lender also clearly shows how credit affects available leverage. Borrowers with stronger credit may qualify for up to 80% LTV on a purchase or refinance, while lower credit tiers receive reduced financing limits. This makes it easier to estimate whether the advertised maximums are realistic before moving forward with an application.
Standout features
- Competitive published rates: RCN Capital advertises long-term rental rates starting at 5.25%. The rate a borrower receives will depend on credit, leverage, property details, and the selected loan structure.
- Several repayment structures: Borrowers can choose from a 30-year fixed loan or 5/1, 7/1, and 10/1 hybrid ARMs. Interest-only options are also available for investors seeking to keep their initial monthly payments lower.
Easy Street Capital: Best for 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
Easy Street Capital provides flexible qualification options for investors whose properties may not meet the standard cash flow requirements of other DSCR lenders. It does not set a minimum DSCR, which means a property may still be considered even when its projected rental income falls short of covering the full monthly debt obligation. The available leverage and pricing will depend on the strength of the overall deal, but this flexibility can give investors more options when financing a vacant property or one with limited rental history.
The EasyRent program also accommodates a wide range of rental strategies. It can finance long-term, midterm, and short-term rentals, along with residential investment properties containing up to 10 units. Rental loans are available in 48 states, making Easy Street a practical option for investors buying outside their local market or expanding a portfolio across multiple states.
Standout features
- Flexible DSCR requirements: Easy Street does not publish a minimum DSCR for its rental loan program. Investors with lower property cash flow may still qualify, although a weaker DSCR can result in a lower LTV or less favorable pricing.
- Short-term rental underwriting: Easy Street can use AirDNA projections to estimate the potential income of an eligible short-term rental. It also does not require an existing STR operating history, which can help investors financing a new vacation rental or converting a property to short-term use.
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 gives rental property investors several ways to structure their financing. Its standard program includes fixed-rate, adjustable-rate, fully amortizing, and interest-only options, with terms ranging from five to 30 years. This flexibility can help investors choose a loan based on whether they are prioritizing lower initial payments, predictable long-term costs, or a shorter expected holding period.
It is also a strong option for investors purchasing short-term rentals. Rather than evaluating the property solely as a traditional long-term rental, Lima One can use AirDNA and other market data to estimate its potential STR income. Keep in mind that its short-term rental program has separate qualification requirements and lower maximum LTVs than its standard rental loan.
Standout features
- Flexible loan structures: Lima One offers fixed-rate and adjustable-rate loans, along with fully amortizing, interest-only, and balloon payment options. Borrowers may also have a choice of prepayment structures, including a no-penalty option when available.
- Dedicated STR financing: The lender has a separate loan program for vacation rentals and other short-term rental properties. It uses AirDNA and additional market data during underwriting, which may provide a more realistic assessment of a property’s expected short-term rental income.
New Silver: Best for fast online approvals
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| Pros | Cons |
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| Interest rate | Starting at 6% |
| Loan amount | $150,000 to $3 million |
| Minimum DSCR | 0.75 |
| Minimum credit score | 660 |
| Max LTV (purchase, refinance, cash-out) | 80% |
| Prepayment penalty options | Typically 5-4-3-2-1 step-down with reduced options available |
| Amortization options | 30-year fixed |
| Interest only available | No |
Why I like New Silver
New Silver is a good choice for investors who want a faster, more digital lending experience. Borrowers can apply online, receive an instant term sheet and proof of funds, and track their loan through the company’s platform instead of relying on back-and-forth phone calls or emails. For investors purchasing in a competitive market, that can make it easier to move quickly once the right property comes along.
I also like that the program remains accessible to a broad range of investors. It finances both long-term and short-term rental properties, considers DSCRs as low as 0.75, and doesn’t require previous real estate investing experience. That combination makes it a practical option for both newer and experienced investors looking for rental financing.
Standout features
- Instant online approvals: New Silver provides an instant term sheet and proof of funds through its online application, helping investors evaluate financing options and move more quickly when making an offer.
- Flexible qualification requirements: The Rent program finances both long-term and short-term rental properties, accepts DSCRs as low as 0.75, and does not require prior investing experience, making it accessible to a wider range of borrowers.
Frequently asked questions (FAQs)
What is a good DSCR for a rental property?
Most lenders look for a minimum DSCR of 1.0, meaning the property’s rental income is expected to fully cover its monthly debt obligation. A higher DSCR, such as 1.2 or above, may improve your chances of qualifying for better interest rates, higher LTVs, or more favorable loan terms. Some lenders also offer programs that consider lower DSCRs for qualified borrowers.
Do all DSCR loans have prepayment penalties?
No. While many DSCR loans include a prepayment penalty, some lenders offer reduced penalty schedules or no-prepayment-penalty options. Choosing a loan without a prepayment penalty may result in a higher interest rate.
Can I use a DSCR loan to buy a short-term rental?
Yes, many lenders offer DSCR loans for vacation rentals and other short-term rental properties. Some even use projected STR income during underwriting instead of relying solely on long-term rental rates.