Long-term Rental / DSCR Loans2024-04-14T09:26:07-04:00

Long-term Rental / DSCR Loans

Long-term investor financing for rental purchases, refinances, or cash-outs

Green Block’s Rental / DSCR Loans are perfect for investors who are looking to acquire turn-key rentals or refinance or cash-out equity of properties in their current portfolio. While conventional banks rely on the investor’s personal debt-to-income, our loans use the property’s Debt Service Coverage Ratio (DSCR), which is a measure of the property’s cash flow compared to its debt. This means we have less paperwork and faster closings than traditional conventional banks and mortgage providers. We help you acquire more rentals and build wealth more quickly.

Rental / DSCR Loans

High LTVs

Fast Funding

Non-QM Loans

Rental / DSCR Loan Details

1 – 4 Units

5+ Units & Mixed Use

Loan Types Purchase, Refinance, or Cash-out. Portfolio loans available. Purchase, Refinance, or Cash-out
Loan to Value (LTV)* Purchase: The Lesser of Up to 80% of the As-Is Value or Up to 80% Loan-to-Cost Purchase: The Lesser of Up to 70% of the As-Is Value or Up to 70% Loan-to-Cost
Loan to Value (LTV)* Refinance: Up to 80% of the As-Is Value Refinance: Up to 70% of the As-Is Value
Loan to Value (LTV)* Cash-out: Up to 75% of the as-is value Cash-out: Up to 65% of the As-Is Value
Term 30 years 30 years
Prepayment Penalty 0 – 5 year step-down options available Step-down options available
Amortization Fully amortized fixed rate. Interest-Only Options available. Fully amortized fixed rate. Optional 5, 7, or 10-year Interest-Only available.
DSCR Minimum 1.05 1.2 (may vary based on market)
Rates Starting at 7.49% Starting at 7.49%
Property Types Non-owner occupied 1-4 units, condos, townhomes. Multi-Family Apartment Buildings (5 – 9 Units).
Property Condition Rent-ready Rent-ready
Portfolio Loans Available 3 or more properties required N/A
Minimum Experience None None
Minimum FICO 660 680
Loan Amount $65,000 – $2 million $250,000 – $3 million
Minimum Property Value $135,000 $50,000 per door
Borrower Type US-based business entities. Foreign National guarantors permitted. US-based business entities. Foreign National guarantors permitted.

* Max LTV based on factors such FICO, experience, property type

Rental / DSCR Loan Application Process

Our loan process is simple – designed to help you close quickly and seamlessly. We know that time is money and our team’s goal is to help you move fast.

Apply for Loan

Upload required documents to our secure online loan portal

Underwriting reviews the file


Frequently Asked Questions

What are your loan fees?2022-08-21T13:57:22-04:00

We believe in transparency. Please review our 1-4 Unit Long-Term Loan Guidelines or our 5+ Unit Long-Term Loan Guidelines for a list of our fees.

Are taxes and insurance escrowed with my monthly interest payment?2022-05-22T17:07:40-04:00

Monthly taxes and insurance are escrowed.

Do you lend on Short-Term Rentals such as AirBnBs?2022-08-21T14:00:21-04:00

Yes. We offer 30 year rental loans on short-term rental properties.

Does my property need to be rented?2022-06-28T18:23:58-04:00

For any long-term purchase loan, the property must be rented within 90 days of the closing of the loan. For refinance and cash-out loans, properties must be leased at close. Minimum occupancy rate of 90% required.

Are the rates fixed or variable?2022-05-22T17:05:15-04:00

For any property that has 1-8 units, you have the option for a fixed or variable rate. For 9 or more units, 5/1, 7/1, and 10/1 hybrid ARM options are available.

Is there a pre-payment penalty?2022-05-22T17:04:19-04:00

For properties containing 1-4 units, there is a stepdown prepayment penalty. Options include 0-5 years. For example, for a 5-year stepdown, if you payoff the loan in year 1, there is a 5% penalty (5% of the loan amount). If you payoff in year 2, there is a 4% penalty, etc.

For properties that are at least 5 units, there is a stepdown prepayment penalty option of 3 or 5 years.

Loans with higher stepdown options (5-yr being the highest) have lower interest rates.

What is the minimum DSCR requirement?2022-06-27T18:52:23-04:00

For properties with 1-4 units, the DSCR must be at least 1.10. For a portfolio of 1-4 unit properties, the average DSCR must be at least 1.10 with no single property having a DSCR below 1.0. For properties that have at least 5 units, the DSCR must be at least 1.40.

What is a DSCR?2022-05-22T17:02:22-04:00

DSCR stands for Debt Service Coverage Ratio. The DSCR is calculated by taking the net operating income and dividing it by total debt service (which includes the principal and interest payments on a loan). DSCR is a measure of the property’s ability to cover its debt obligation. The higher the DSCR, the better.

What are long-term rental loans?2022-05-22T17:01:31-04:00

A long-term rental loan is a loan used to purchase, refinance, or cash-out a rental property. These loans are secured by real estate and rely primarily on the property’s Debt Service Coverage Ratio (DSCR) to qualify. Long-term rental loans have a term of 30 years.

Who can borrow?2022-05-22T18:24:24-04:00

Our loans are for real estate investors looking to purchase, rehab, refinance, cash-out, or build investment properties. We lend only to legal business entities such as LLCs, LPs, or Corporations domiciled in the United States. We do not lend to individuals.

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