Capital Funding’s Rental DSCR Loan: Grow Your Real Estate Portfolio
Written By: Daly Kay DiNatale
Date: June 24, 2025
Rental properties are a proven way to generate stable cash flow and build wealth in today’s competitive real estate market. Capital Funding’s Rental DSCR (Debt Service Coverage Ratio) Loan Program offers investors a fast, flexible way to finance non-owner-occupied rental properties, from single-family homes to multifamily units, without the hurdles of traditional lenders.
What is a Rental DSCR Loan?
A Rental DSCR loan is a financing solution for real estate investors to purchase or refinance non-owner-occupied properties that generate rental income. Unlike conventional mortgages, which focus on personal income and credit, DSCR loans prioritize the property’s rental income, measured by the Debt Service Coverage Ratio. This makes them ideal for investors seeking cash flow-driven investments.
Key Features of Capital Funding’s Rental DSCR Loans
- Loan Size: $200,000 – $10,000,000
- Loan Term: 30 years (5/1, 7/1, 10/1 ARM, or 30-year fixed)
- Time to Close: 17–28 days from deposit
- Asset Classes: Single-family homes, multifamily (up to 12 units), condos, townhomes, planned unit developments
- LTV: Up to 80% for purchases
- Lien Position: Senior secured first mortgage or deed of trust
- Interest Rate: 6.50% – 8.75%
- Origination Fees: 1.50% – 2.50% (based on loan size, timing, complexity)
- Amortization: Principal & Interest or Interest-Only options
- Prepayment Penalty: Options include 5/4/3/2/1, 3/2/1, or no penalty
- DSCR Requirement: 1.10x, 1.00x, or 0.75x options available
- Minimum Credit Score: 660 (exceptions case-by-case)
Why Choose a Rental DSCR Loan?
Capital Funding’s DSCR loans are designed for investors seeking speed, flexibility, and simplicity. Here’s why they stand out:
- Cash Flow Focus: Loans are underwritten based on the property’s rental income, not personal finances, easing qualification for investors with complex income or credit.
- No Income Verification: No tax returns, W2s, or pay stubs required, simplifying the process.
- Fast Closings: Close in 17–28 days, compared to 45–60 days with traditional lenders.
- High Leverage: Up to 80% LTV allows you to finance more with less upfront capital.
How Does a Rental DSCR Loan Differ from a Conventional Mortgage?
| Feature |
Rental DSCR Loan |
Conventional Mortgage |
| Approval Time |
17–28 days |
45–60 days |
| Underwriting Focus |
Property’s rental income (DSCR) |
Borrower’s income and credit |
| Documentation |
No income docs required |
Tax returns, W2s, pay stubs required |
| Property Type |
Non-owner-occupied rentals |
Primary residences or rentals |
Rental DSCR loans are tailored for investment properties, offering faster approvals and flexibility for investors.
Eligible Property Types
Capital Funding’s Rental DSCR loans finance non-owner-occupied properties, including:
- Single-family homes: Ideal for long-term or short-term rentals (e.g., Airbnb, Vrbo)
- Multifamily (2–12 units): Perfect for scaling rental income
- Condos and townhomes: Residential investment properties
- Planned unit developments: Eligible for rental financing
Note: Properties must be non-owner-occupied. For commercial properties (e.g., office, retail), explore our Commercial Loan Program.
Application Process
- Apply Online: Submit your application via our secure portal and e-sign with DocuSign.
- Consultation: Discuss your project and financing goals with our team.
- Submit Documents: Provide minimal documentation (e.g., purchase agreement, bank statements, proof of insurance).
- Underwriting and Closing: We order appraisals, review title and insurance, and close in 17–28 days.
Why Partner with Capital Funding?
As a private lender with over 30 years of real estate experience, Capital Funding offers:
- Speed and Flexibility: Close deals quickly with customized loan terms.
- Investor Expertise: Our team has developed over 1,000 properties, understanding your needs.
- In-House Processing: We handle underwriting and closing in-house, reducing costs and delays.
- Long-Term Support: Build your real estate legacy with a trusted partner.
Get Started Today
Ready to diversify your portfolio with a Rental DSCR Loan? Contact Capital Funding to finance your next rental property and unlock stable cash flow.
Call: 866-999-2011
Email: info@capitalfunding.com
Apply Now: Visit capitalfunding.com
