We compare the best DSCR lenders of 2024 based on interest rates, speed, and loan requirements so you can find a lender that meets your investment needs.
In our experience, there are three factors you should consider when choosing a DSCR (debt service coverage ratio) lender:
We find that many DSCR lenders fall short in at least one of the categories above; they either take too long to close loans or are brokers, not direct lenders. This often leads to frustrating situations for real estate investors looking for a reliable lender.
To help you choose the right lender in the context of the criteria listed above, we discuss five of the leading DSCR lenders in the U.S., beginning with ourselves, Constitution Lending, then also listing Lima One Capital, New Silver Lending, Kiavi, and Griffin Funding.
If you'd like to see what interest rates you qualify for, use our DSCR loan pricer to generate a quote within seconds.
Constitution Lending is a direct, hard money lender that offers DSCR loans to real estate investors looking to quickly and reliably finance deals.
We founded Constitution Lending based off our previous bad experience with lenders. We’ve been investing in real estate for several years and understand how long many lenders take to close.
Additionally, we saw that many “lenders” aren’t actually funding loans (they are brokers), so sometimes the loan officer doesn’t even know if you can qualify until you’re already a month into underwriting.
Constitution Lending solves these problems by being a direct lender that closes loans within seven to 14 days.
You can get an instant quote by entering a few details into our loan pricer (for example, the state your property is in, what type of property you’re looking to purchase or refinance, and your FICO score).
That will look something like this:
From here, you can tweak your LTV and purchase price to see how it affects your interest rates and monthly payments. If you like one of our quotes, click on it, enter your contact details, and you’ll receive a pre-approval letter and term sheet within 24 hours.
After that, you can submit the necessary documentation via our portal, and we’ll fund the loan within one week.
Because we’re a direct lender, we know what our requirements are and can tell if you’re likely to qualify before we start underwriting. This ensures your loan doesn’t fall through at the last minute.
A good indicator of how quickly you can receive a DSCR (debt service coverage ratio) loan is the speed at which a lender gives you a term sheet or pre-approval letter. If a lender is slow to approve your loan, it’s likely that the funding process will also be slow.
With Constitution Lending, once you’ve used our DSCR pricer to get a quote, we send you a term sheet and pre-approval letter immediately. In scenarios where borrowers have all the documentation ready and need a loan urgently, we’ve closed DSCR loans within four days.
The entire process looks like this:
Compare this process to that of many DSCR lenders. They don’t provide you with an instant quote; they have a contact form on their website and you have to fill it out and wait days before a loan officer gets back to you with a term sheet.
Constitution Lending is a direct lender, meaning we’re financing your loan. We aren’t brokers who’re connecting you with the actual lender.
The benefit of this is that we know exactly what our loan requirements are, so we can tell if you qualify as soon as you submit the required documents. We don’t have to meet with a third-party lender and begin underwriting before informing you about whether your loan is approved.
If you don’t qualify, we can spot this early on and notify you as soon as possible.
Compare this to brokers who are simply intermediaries between you and the actual lender. Since they aren’t funding the loan, they sometimes don’t know if you qualify until you’re already in the underwriting process.
We’ve been in these situations only to learn at the last minute that our application has been rejected because of certain requirements that the broker didn’t know about.
Avoiding this was one of the reasons we started Constitution Lending.
Generate an instant quote using our DSCR loan pricer and we’ll send you a pre-approval letter and term sheet immediately.
Lima One Capital is a hard money lender that offers real estate investors a variety of loan products, such as DSCR loans, fix-and-flip loans, bridge loans, and ground-up loans.
Here’s a quick overview of Lima One’s DSCR loans:
In addition to long-term DSCR loans, Lima One also has short-term rental loans for Airbnb properties. These loans require a 1.5 DSCR and 700 FICO score; borrowers can get a maximum LTV of 75% on purchases and 70% on refinances.
To apply, you have to fill out a contact form on Lima One’s website, telling them more about the investment property you’re looking to purchase — such as the asking price and number of units — and a loan officer will reach out within a few business days.
From here, the loan officer requires you to submit documentation, such as proof of funds, entity documents, and a credit report, and then they send you a term sheet. However, Lima One doesn’t say exactly how long it takes them to issue term sheets.
New Silver Lending is a direct lender that offers private money to real estate investors. They provide DSCR loans, fix-and-flip loans, bridge loans, and construction loans.
Here’s a summary of the metrics New Silver Lending considers when issuing DSCR loans:
In order to apply for a DSCR loan, you can fill out an application form on New Silver Lending’s website. Here, they ask questions to get a better understanding of the real estate investment’s value, potential rental income, and debt obligations.
They give you an initial quote based on the information you entered and ask you to set up a call with one of their loan officers. This loan officer will get you pre-approved and ask a couple of additional questions to gauge your eligibility. Once you submit all necessary paperwork, they order the appraisal and close your loan.
Kiavi is a private lender that operates in 32 states and Washington D.C. In addition to DSCR loans, Kiavi also offers rental portfolio loans, where investors can consolidate the loan payments of five properties or more into a single mortgage payment.
Kiavi offers the following terms on their DSCR loans:
When applying, borrowers need to create an account on Kiavi’s website and complete a loan application form. From there, one of Kiavi’s loan officers will call you and ask you to submit all necessary documents — such as bank statements and entity documents — and then order the appraisal.
Griffin Funding is a direct-to-consumer mortgage lender specializing in lending to self-employed borrowers. In addition to non-QM loans like DSCR loans, they also offer commercial real estate loans, conventional mortgage loans, and VA home loans.
Like all DSCR lenders, they don't require you to submit pay stubs, tax returns, or income verification like you would when applying for conventional loans. Their main consideration is your property’s net operating income and DSCR ratio.
Here’s an overview of Griffin Funding’s DSCR loan terms:
Additionally, Griffin Funding provides DSCR loans for short-term rental properties like Airbnbs. To qualify, a property needs to generate a DSCR of at least 0.75, the borrower should have a minimum credit score of 700, and the property must have an occupancy rate of 60% or more.
In order to apply, borrowers can create an account on Griffin Funding’s website and fill out the application form before receiving a quote. If they like the interest rates and terms of the quote, they can submit documents on the website, and a loan officer will reach out with a term sheet.
From here, the application process is similar to that of many DSCR lenders. The loan officer orders the appraisal, begins underwriting, and sends over the finalized loan terms.
If you’re looking to apply for a DSCR loan, use our automated pricer to get an instant quote and we’ll send you a term sheet within 24 hours.
| Qualification | Requirement |
|---|---|
| Minimum and maximum loan amount | $150,000 to $3,000,000 |
| Type of property | Non-owner occupied single-family, multi-family, and 5-8 unit properties |