We were moving 1800 miles across country and worked with Chad Pounders at Lit Financial to broker our mortgage. As difficult as remote home buying can be, the financing was the least stressful by a wide margin and I credit that to Chad and his team at Lit. Communication was always quick and Chad showed a ton of patience as we worked through inventory with our realtor. Chad is knowledgeable and was open and honest about our options as we moved through the process. I highly recommend reaching out to Chad and his team at Lit if you are in… Read more →
DSCR loans. Tapping into commercial real estate success.
LitFinancial helps you calculate the earning potential of a property for a loan.
Best for commercial real estate professionals looking to purchase property with a loan.
No SSN required. Zero impact to credit.
Your information is never sold.
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What is a DSCR loan?
A DSCR loan is primarily used in commercial real estate ventures. It essentially calculates the income a property could generate against the expenses associated with purchasing, running, and maintaining the property. It weighs the debts against the potential income of the property.
Is this loan right for me?
If you’re a real estate investor or would-be landlord, the odds are it is right for you. Commercial real estate investors use DSCR loans to help them purchase properties without having to pay the full amount upfront. If you’re into commercial real estate, DSCR loans can be helpful to finance investments without tapping into your personal lines of credit.
How can LitFinancial help?
DSCR loans are complex financial instruments. When your business runs on the income a property generates, you want to be sure that you got every advantage on that property’s DSCR loan. We’ll help you with all the details and get every percentage point you want from your loan.
Frequently Asked Questions
Let's help make things clearer.
A DSCR loan is a mortgage for real estate investors that’s based on the property’s rental income—not your personal income.
Lenders look at whether the rent the property brings in is enough to cover the mortgage payment. If the numbers work, you can qualify.
A DSCR of 1.0 or higher is typically required, meaning the property pays for itself. Some lenders allow lower DSCRs with higher down payments.
Usually no. DSCR loans often don’t require tax returns, W-2s, or employment verification.
Most programs require 20%–25% down, but some allow less with strong credit or higher DSCR.
Many lenders look for a score of 620–680+, depending on the program and down payment.
Single-family homes, condos, townhomes, and 1–4 unit investment properties. Some lenders also allow short-term rentals (Airbnb/VRBO).
Yes—many lenders offer DSCR programs for vacation rentals, using either market rent or actual Airbnb income.
Yes, they’re usually a bit higher than conventional loans because they’re considered business-purpose loans.
They often close quickly—as fast as 2–4 weeks—since there’s less income verification.
Yes. You can do rate-and-term or cash-out refinances using a DSCR loan.
Yes. Most lenders want 3–12 months of reserves, depending on the loan size and DSCR.
A standard appraisal is required, and lenders usually order a rental analysis to estimate market rent.
Some lenders allow gift funds, but many prefer the borrower to bring their own investment capital.
Most DSCR loans have a prepayment penalty, often for 1–5 years, since they’re investor-focused loans.
Yes—many DSCR lenders allow closing under an LLC or corporation to help with privacy and liability.
Absolutely. Investors who own multiple properties often use DSCR loans because they avoid personal income limits.
You may still qualify with a bigger down payment, higher credit score, or strong reserves—depends on the lender.
No. DSCR loans are for non-owner-occupied investment properties only. You cannot live in the property.
It’s a great fit if you’re an investor who wants simple qualification, flexible guidelines, and a loan based on property income—not your personal income.
Get started with our quote tools.
Whether you’re estimating your mortgage costs, seeking to simplify and save through debt consolidation, or aiming to explore and compare various loan options tailored to your needs, our intuitive tools are here to guide you every step of the way.
No SSN required. Zero impact to credit. Your information is never sold.
Why choose LitFinancial?
Experience Matters
When it comes to loan officers, we are experienced experts and take pride in leveraging our knowledge to help you every step of the way.
We Are Your Advocate
Our loan officers are advocates through -out your lending journey. From finding the right mortgage plan, to proactively engaging with key stakeholders on your behalf.
Relentlessly Seeking Solutions
We are committed and passionate about helping borrowers find their best financial fit. We tap our trusted network to look at any and all options.
Lit For Life
Our approach to advising is finding the best solution for each client’s life. We will also be there as your needs change through different life stages.
Advising You Like You’re Family
We are a mortgage partner that takes the time to listen to your needs and goals. We care about each client that tailor our advice for your best outcome.
Leading the Industry
We are constantly modernizing lending models, streamlining treasury operations, and increasing transparency across mortgages. This allows us to bring innovative products and better service to you.
Chris Solinski, Executive Loan Officer
“Nothing is impossible. The word itself says ‘I'm possible!’”
People like LitFinancial
When you love what you do, it shows.
Brandon was incredible to work with throughout my refinance process. He was knowledgable, responsive, and truly went above and beyond to make sure I understood every step. Most importantly, he saved me a significant amount of money. His friendly approachable attitude made what could be a stressful process feel smooth and manageable. Billy, his supervisor was also extremely helpful and supportive. I'm so grateful for their hard word and would highly recommend them to anyone looking to refinance! Read more →
We had an excellent experience working with Chris Solinkski and his team at Lit Financial. He was knowledgeable, professional, and incredibly responsive throughout the entire loan process. His communication was clear, and he kept us updated every step of the way. We truly appreciated how quickly he handled things while still taking the time to answer our questions. We highly recommend Lit Financial and Chris to anyone looking for a seamless lending experience! Read more →
The first call with Keefer was awesome and i immediately felt hopeful that i would get the house of my dreams. Keefer was professional, friendly and very supportive throughout the process. Tiffany and Rima came on board and did a fantastic job together with Keefer. Working with this team has been a great experience that i will never forget about. Keefer held my hand, always giving me updates and encouraged me to keep going and not lose hope, he guided me throughout the process . Rima, Tiffany and Keefer worked so hard for me to get the loan, I’m so… Read more →
We did a refinance on our home, and James Abdallah was very professional, assisting us every step of the way with any information we needed and answering any questions that we had. The entire process was very fast and we felt very comfortable with how knowledgeable he was. He was easy to contact and available at all times for us. We ended up getting the deal that we wanted with a quick turnaround time. A special thanks to Lex and Sue as well for their help as part of the team! I highly recommend working with the Lit Financial team… Read more →