Long-term financing based on property cash flow, not personal income. Qualify on the asset, not your tax returns.
DSCR (Debt Service Coverage Ratio) loans provide strategic leverage sized by the property's rental income relative to the mortgage payment. Built for real estate investors, DSCR loans cut through the red tape of traditional lending — no W-2s, no pay stubs, no explaining your portfolio to an underwriter who doesn't understand it. Just the numbers that matter.
This is the staple product for investors building or holding a rental portfolio who are seeking stable, predictable, and long-term debt without the friction of traditional bank underwriting.
$100,000 to $3,000,000 per loan. Multi-loan structures available up to $10MM ($20MM case by case).
30-year fixed with interest only options
1.00 DSCR minimum. More deals qualify when you're not stuck at the 1.20 minimum that most other lenders require.
SFR, 2-10 unit, townhomes, small multifamily. Max 10 units per building.
You're an investor with one or more rental properties generating income. You want long-term, stable financing without sharing your personal tax returns or jumping through agency underwriting hoops.
Whether you're buying a new rental, refinancing an existing one, or doing a cash-out to fund your next acquisition, DSCR is the cleanest path.
A DSCR (Debt Service Coverage Ratio) loan is an investment property loan that qualifies borrowers based on the rental income of the property, not personal income. If the property's rent covers the mortgage payment, you can qualify.
DSCR is calculated by dividing the property's gross rental income by the total monthly payment (principal, interest, taxes, insurance, and HOA). A DSCR of 1.00x means rent exactly covers the payment. Our minimum is 1.00x, while most lenders require 1.20x or higher.
Unlike conventional loans, DSCR financing does not require tax returns, W-2s, pay stubs, or employment verification. Ideal for self-employed investors and business owners who write off heavily and show lower taxable income than their actual earnings.
Experienced rental investors, portfolio builders, and real estate professionals who want to scale without the documentation burden of conventional lending. Borrowers must have a minimum 680 credit score and at least one prior rental property owned.
Single-family residences, 2-10 unit properties, townhomes, warrantable condos, and small multifamily. Maximum 10 units per building. Larger multifamily and apartment complexes are not eligible. Properties must be non-owner-occupied. Both purchase and refinance available.
How Ledger is different: We are a direct private lender, not a broker. Our capital comes from institutional sources, which means faster decisions, flexible structuring, and no middleman markup. We offer 30-year fully amortizing fixed rates with interest-only options up to 10 years, cash-out refinance with no seasoning requirement, and the ability to close in your LLC or corporate entity for asset protection. No yield maintenance penalty, stepdown prepayment structures only.
Eligible states: We lend in 40+ states and DC. Top markets include North Carolina, South Carolina, Virginia, Ohio, Florida, and Texas, but we serve investors nationwide with consistent terms and a streamlined process regardless of location.
Most DSCR lenders require the property to be held in an LLC or business entity. If you currently own rentals in your personal name, here's why that matters and how to make the switch.
DSCR loans are investment loans, not consumer mortgages. Closing in an LLC separates the investment from your personal finances, which is how these loans are designed to work. It also means no personal income documentation is needed.
An LLC creates a legal barrier between your rental properties and your personal assets. If a tenant lawsuit or property claim arises, only the assets inside the LLC are exposed, not your home, savings, or other investments.
You can transfer existing properties into an LLC and then refinance with a DSCR loan. Many investors use a cash-out refinance to pull equity from properties they originally purchased in their own name.
Forming an LLC typically takes a few days and costs a few hundred dollars depending on your state. You'll need an EIN from the IRS (free, takes 10 minutes online). That's it.
State-specific DSCR rental loan programs with local market details and eligibility information.
See current DSCR rental loan rates from 6.25%