DSCR Debt Service Coverage Ratio

Rental Income Based Mortgages

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Our DSCR Rates & Terms:

Property Types

Single family, condos, townhomes, multi-family 2-4 units

Loan Amounts

$75,000 – $2,000,000


30-Year Fixed-Rate Rental Loans with interest only options

Loans Available

Loans are available to individuals, trusts, corporations, and limited partnerships.

Seasoned investors generate recurring monthly revenue through rental properties. Taking advantage of the best rental properties in your area requires fast access to funding to purchase the property and make the necessary repairs and capital improvements that allow you the greatest return on your investment.

Single or multiple rental properties
Up to 80% of the value
$75,000 – $2 million
Purchase or Refinance
Income calculated on the property, not the borrower
Fixed options on 30-year terms with interest only options

American Heritage Lending’s competitive loan programs are designed so experienced investors can cut through the red tape to access the funding they need for the best rental properties. Our clients get a personalized rental property loan process that results in the certainty of closing with fewer delays and fewer hassles.


Buying a rental property is one of the most popular forms of real estate investment. Real estate investors purchase a rental property for more than the monthly liabilities (principal, interest, taxes, insurance). The investor can then rent out the property, creating cash flow. Ideally, the real estate investor will achieve positive cash flow initially, but this isn’t always feasible. The real estate investor will also depend on the property appreciating and taking advantage of tax benefits to maximize their profits from purchasing the long-term rental.

Hard Money Lenders for DSCR / Debt Service Based Rental Properties

Hard money loans for a rental property are often used when the borrower needs to act quickly to secure the property. To obtain a rental property loan from a conventional lender can take months and involve mountains of paperwork. Rental property loans from hard money lenders can be approved same-day, and funding can be completed within days if needed.

Some borrowers will use hard money lenders for rental properties after being denied by conventional lenders such as banks and credit unions. Traditional lenders may deny a borrower’s loan request for various reasons, including having too many existing conventional loans, poor credit, or other negative issues on their recent record (bankruptcy, foreclosure, short sale, etc.).

When analyzing a rental property loan, hard money lenders focus primarily on the

  1. Value of the property and
  2. The borrower’s equity (down payment) in the property.

The focus on value and equity allows the hard money lender to overlook many issues which would be red flags for banks.

Rental Property Financing Requirements for DSCR Based Mortgages

Rental property financing from a hard money lender generally requires a down payment of at least 20% from the real estate investor. 100% financing is not available.

Hard money loans for a rental property are typically easy to obtain as long as the real estate investor has the necessary down payment and sufficient cash or income to cover the property’s holding costs. Rental property hard money lenders can overlook poor credit scores and items on a borrower’s record, including foreclosures, bankruptcies, short sales, loan modifications, and other issues that would prevent other lenders from providing investment loans for rental property.

Suppose the real estate investor has sufficient equity in another property but does not have enough cash for a down payment. In that case, the real estate investor may be able to take out a cash-out refinance loan to raise funds for the down payment on the new rental property purchase. The lender will also want to see that the investor has enough cash reserves to deal with potential tenant vacancies, repairs, and unforeseen issues.

Rental property loans from hard money lenders are not typically long-term loans. The most extended terms available are usually six months to 2 years terms. Hard money loans for rental properties are often amortized over 30 years, but a balloon payment will be due after the agreed-upon term. The lender will want to know the real estate investor’s intended exit strategy upfront to understand how the borrower will repay the rental property loan. The exit strategy may involve refinancing the rental property loan into a long-term conventional loan or selling the property.



Investors looking for income or to build a real estate portfolio while the market is strong can benefit from our buy-to-rent loans. These loans allow buyers to borrow for the purchase of a rental property.

We understand the need to move quickly when opportunities arise. Our application, appraisal, and approval process can be accomplished in just a few days to ensure you can negotiate effectively with the property holder.

We can provide long-term financing of up to 30 years, with partial or complete amortization.


American Heritage Lending provides a wide variety of real estate investment loans to real estate investors. Popular real estate investment loans include investment property purchase loans, investment property refinance loans, and investment property rehab loans.

Real estate investor loans help borrowers quickly secure investment property or borrow against their own real estate. Private money real estate investment lenders such as American Heritage Lending can provide same-day approvals and financing within days. The speed of loan approval and financing allows borrowers to capitalize on short-term opportunities and use leverage to maximize their investment yield.

While banks can take 2-3 months to approve and fund a real estate investment property, private money real estate investment lenders can approve and finance within a week.


The main requirement for obtaining real estate investor financing is having sufficient funds for a down payment or equity in an existing property. A down payment of at least 20-30% is generally required for real estate investment financing. For refinancing existing real estate investments, the borrower will need to maintain equity of at least 30% (allowing a cash out up to 75% of the property’s value).


Residential real estate investment loans are available for various property types, including single-family residences, condominiums, apartment buildings, and other multi-family properties (duplex, triplex, fourplex, etc.). Loan to value ratios up to 70-75% are available for residential real estate investment loans with financing terms up to 30 years.


Real estate investment loan rates are typically higher than interest rates available from conventional lenders such as banks and credit unions. 


American Heritage Lending can help real estate investors refinance investment properties. Investment property refinance loans are common for real estate investors who currently own an investment property with sufficient equity. American Heritage Lending provides refinance loans for an investment property and cash-out refinance investment property loans. A simple refinance loan offers the borrower a lower interest rate or a longer loan term if the existing loan soon becomes due. A cash-out refinance loan allows the borrower to quickly pull equity to reinvest in another property from the current property.

After multiple years of a hot real estate market, real estate investors discover significant equity in their rental properties. Rental Property cash-out refinance loans are a popular way to access the equity in a property, giving an opportunity to invest the capital into other projects.

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