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DSCR loans: purchase and refinance qualified on the rent in Ohio.
Long-term rental debt qualified on what the property earns rather than what you report. No tax returns, no W2s, no employment history, for purchase or refinance.
This market
What changes in Ohio.
Ohio is where the coverage test is generous rather than punishing, and that changes the strategy. In high-basis markets a rental barely services its own debt and a DSCR loan sizes down to almost nothing useful. Here the relationship between purchase price and rent is wide enough that the property comfortably clears the threshold, which means the loan is limited by value rather than by income.
That is the opposite of the constraint most investors have been trained to expect, and it is why buy, fix, refinance and hold is the strategy that repeats in this state. The refinance actually returns the capital rather than leaving most of it stuck in the deal.
Where it goes wrong is the rent assumption. A lender uses market rent from an appraisal rather than the number you hope to achieve, and Cleveland in particular varies enough street to street that a rent pulled from the wrong few blocks will qualify a deal on paper that does not qualify in the file.
The instrument
The property qualifies. You do not.
The full detail is on the dscr purchase and refinance page. Nothing about it is restricted by state.
A DSCR loan compares the property's monthly rent to its total monthly debt service, principal, interest, taxes, insurance and any HOA, and the property either covers that payment or it does not. There is no personal income statement in the calculation: no tax returns, no W2s, no debt-to-income ratio pulled from your own finances.
The ratio itself is the whole underwrite. A DSCR of 1.0 means rent exactly covers the payment. Most files get standard pricing at 1.20 or better; between 1.0 and 1.20 is often still financeable at different terms. Below 1.0 the property is not carrying itself on its own income and the file usually needs a different structure.
Terms
What is on the table.
| Amount | $75,000 to $1,000,000+ |
|---|---|
| Qualification | Property's rent against its debt service. No tax returns or W2s |
| Rate and points | Set by credit, DSCR and the deal. Your number is in the term sheet. |
| Decision | 24 to 48 hours from a complete submission |
| Time to close | 14 to 21 days, subject to title clearance |
| Prepayment | Terms vary by structure and are stated in the term sheet |
| Property types | Non-owner-occupied residential, 1 to 4 units, and small multifamily |
| Not funded | Owner-occupied homes, primary residences, and any consumer purpose loan |
Questions
About Ohio.
Do you only write dscr purchase and refinance loans in Ohio?
No. Lending is nationwide and this instrument is not restricted by state. Ohio has its own page because it is one of the markets these deals most often come from.
Which parts of Ohio do you lend in?
All of it. The most active markets are Columbus, Cleveland, Cincinnati, Dayton, Toledo, which is where the deals have come from rather than a service area.
What DSCR do I need to qualify?
1.0 means rent exactly covers the payment. Most standard pricing wants 1.20 or better, and between 1.0 and 1.20 is often still financeable on different terms. Below 1.0 usually needs a different structure.
Do I need tax returns for a DSCR loan?
No. That is the point of the product. Underwriting reads the lease or a market rent appraisal, the property's expenses, your credit, and reserves, not your personal income.
Can I use a DSCR loan to refinance out of a bridge loan?
Yes, and it is a common exit out of a fix and flip or BRRRR bridge, provided the property's rent supports the new payment at the value it appraises for.
Elsewhere
Not in Ohio?
Lending is nationwide. The states below have their own page because they are where the most deals come from, not because they are the only places money goes. If your property is somewhere else, submit it anyway; the terms do not change with the postmark.
More about this market on the Ohio page, and about the instrument on the dscr purchase and refinance page.
Other instruments: Fix and flip, BRRRR, Ground-up construction, Rental portfolio refinance, Wholesaler transactional funding.
Submit a deal
Let's price it.
No credit pull, no obligation, and a real answer either way. If it is not a fit I will tell you why, and usually who to call instead.
- Terms in 24 to 48 hours
- Written, not verbal
- One person, start to finish