Loan Programs
The single-family rental is the workhorse of most portfolios: easiest to finance, easiest to sell, easiest to appraise. Our SFR DSCR program funds it on the property's rent, in your LLC, with no cap on how many you own.
SFR program terms
- Up to 80% LTV on purchase, 70–75% on cash-out
- 30-year fixed, 40-year, ARM, and interest-only structures
- 620 FICO floor; best pricing at 720+
- Detached SFR, townhome, PUD, and warrantable condo
- Loan amounts from $75,000 to $4,000,000
Why SFR prices best
Every part of the file is cleaner on a single unit. The appraisal is a Form 1004 with a Form 1007 rent schedule, both routine products with deep comparable data. The exit is liquid — a lender foreclosing on a three-bedroom house sells it to an owner-occupant, not to the much thinner pool of buyers for a fourplex. That liquidity is why SFR carries the highest LTV caps and the lowest rate adjustments in the DSCR market.
It also means the appraisal is the step that matters most. On a fourplex the appraiser leans on the income approach and your rent roll carries weight. On a single-family house the sales comparison approach dominates, and three recent sales within a mile decide your leverage.
Structures, and when each one earns its keep
| Structure | Best for | Trade-off |
|---|---|---|
| 30-year fixed | Long-term hold with no refinance plan | Highest payment, best certainty |
| 40-year fixed | Tight DSCR that needs the ratio lifted | Slower amortization, 680+ FICO, 75% LTV cap |
| Interest-only (10yr IO) | Maximizing near-term cash flow or a planned sale | No principal paydown; payment jumps at recast |
| 5/6 or 7/6 ARM | Confident exit inside the fixed period | Reset risk if the exit slips |
The interest-only conversation is worth having deliberately. Moving a $320,000 loan at 7.125% from fully amortizing to interest-only cuts roughly $256 a month off the payment and can lift a 0.97 DSCR into passing range. That is a legitimate structuring tool. It is also a decade of no equity build, so it should be a choice about the hold period rather than a rescue for a deal that does not work.
Condos and townhomes
Attached product adds one document to the file and one meaningful risk: the condo questionnaire. Underwriting checks owner-occupancy percentage, whether any single entity owns more than a threshold share of units, HOA reserve funding, and pending litigation. A single active assessment lawsuit turns a warrantable condo non-warrantable overnight, dropping the LTV cap from 80% to as low as 65%.
The HOA dues line also counts in full toward PITIA. A $380 monthly assessment on a $2,400 payment is nearly a sixth of your denominator, and it is the reason a condo with identical rent to a nearby house often misses the ratio the house clears comfortably.
Scaling past property ten
The conventional financed-property cap is where most investors first come to DSCR, and the arithmetic of scaling has its own shape. There is no program cap here, but individual lenders set per-borrower exposure limits — commonly $2M to $5M in aggregate, or five to ten loans. Spreading a growing portfolio across more than one capital source is not a fallback; it is the design.
Reserves scale too. At five or more financed properties most lenders want two months of PITIA per property, frequently capped at six months overall. Plan that liquidity before the fifth acquisition, not during it.
Price a single-family deal
Address, purchase price, and rent is enough to come back with structures inside a business day.
Get a term sheet Run the numbersBusiness-purpose loans on non-owner-occupied investment property. Terms, leverage, and eligibility vary by lender, state, and borrower profile and change frequently. Not a loan commitment.