Small Balance DSCR Loan
Financing for lower-priced rental properties, with at least one program starting at a $75,000 loan amount. The rent the property earns is what qualifies the loan.
Small rentals qualify on rent
Here is how the smallest loan amounts in our DSCR programs work.
- At least one program accepts loan amounts from $75,000.
- From $75,000 to under $125,000, that program requires a DSCR of at least 1.00.
- Several other DSCR programs we offer start at $100,000.
- The minimum credit score is 660 in at least one small-balance program.
- On a purchase, qualifying rent can come from market rents, and the property can be vacant.
- At least one program asks for 3 months of reserves on loan amounts from $100,000 to $500,000.
Loan amounts from $75,000
The rent does the qualifying
No employment verification required
Buy a vacant rental
Close in your LLC
Condos and 2 to 4 units
How Small DSCR Loans Work
A DSCR loan qualifies on the property’s rent instead of your personal income, and the smallest loan amounts come with a few extra rules.
DSCR stands for debt service coverage ratio. It is the property’s gross rental income divided by its monthly housing payment, which includes taxes, insurance, and association dues. At least one program we offer requires no employment verification or income analysis.
Loan amounts start at $75,000 in at least one program. From $75,000 to under $125,000, that program requires a DSCR of at least 1.00, while its larger loans can go as low as 0.75. Other programs start at $100,000, and one of them requires a DSCR of 1.25 on loan amounts of $150,000 or less.
These are business-purpose loans for investment properties. The borrower, family members, and members of the borrower’s LLC cannot live in the property. Condition matters too: a C3 condition rating is generally required, and a C4 rating must be justified.
Why choose Saxton for a small balance DSCR loan
This page is for investors buying or refinancing a lower-priced rental who want to qualify on the rent instead of personal income.
Loans Start At $75,000
At least one program we offer accepts loan amounts from $75,000. Other DSCR programs we checked start at $100,000, $125,000, $150,000, or $200,000.
We Match The Coverage Rule
Smaller loans can carry stricter coverage rules. One program needs a 1.00 DSCR under $125,000, and another needs 1.25 at $150,000 or less. We place your file where your rent fits.
Vacant Purchases Work
On a purchase, at least one program qualifies the loan on market rents, and the property can be vacant.
First-Time Investors Can Qualify
At least one program accepts first-time investors with a DSCR of at least 1.00 and a credit score of 700 or higher. First-time homebuyers are not eligible in that program.
ITIN Borrowers Have Options
At least one ITIN DSCR program starts at $100,000. It can work without a qualifying credit score when alternative credit documents your payment history.
Your LLC Can Hold Title
Entity vesting is eligible in at least one program. The qualifying credit score comes from the member with the largest ownership share, who must own at least 25%.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers on the smallest DSCR loans we can place.
$75,000. At least one program accepts loan amounts from $75,000, and several others start at $100,000.
Often, yes. In the program that starts at $75,000, loans under $125,000 need a DSCR of at least 1.00. Another program that starts at $100,000 requires 1.25 on loan amounts of $150,000 or less.
660 in at least one program. That program accepts a minimum score of 640 for additional borrowers.
Yes, in at least one program. Short-term rentals need a DSCR of at least 1.15, and they are not permitted in the five New York City boroughs.
3 months in at least one program for loan amounts from $100,000 to $500,000. That program also allows cash-out proceeds to count toward reserves.
Yes. The program that starts at $75,000 does not lend on investment properties in Washington, DC, Baltimore City, Indianapolis, or Lubbock, and it does not accept Philadelphia row homes. Other programs have their own limits, so share the address early.
Yes. At least one program allows cash-out refinances. It requires 6 months since the most recent transaction, except for delayed financing.
Saxton Mortgage does. At least one DSCR program we offer starts at a $75,000 loan amount, and loans from $75,000 to under $125,000 need a DSCR of at least 1.00.
Find out what you qualify for
Tell us about the rental, the rent it earns, and the loan amount you need, and we will check how it fits our programs.
Get Pre-QualifiedLoan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.