All guides

How DSCR loans work for Virginia rental properties

Reviewed by Kyle Kiss, Mortgage Loan Officer, NMLS 1820789. Licensed in VA, MD, WV. Last reviewed October 28, 2026.

A DSCR loan is a mortgage for an investment property that is qualified mainly on the property's rent compared with its housing payment, not on your personal income. It is a Non-QM, business-purpose loan.

DSCR loans through Kyle in Virginia

Kyle Kiss offers DSCR loans for rental properties. Figures below are copied from the investors program. Current terms are on the investors page.

Available for rental properties in Virginia, Maryland, and West Virginia, including Arlington, Fairfax, Vienna, Bethesda, and Alexandria.

Minimum loan amount: DSCR ≥ 1.0: $75,000; DSCR 0.75-0.99: $250,000. Maximum loan amount: Standard: $2,500,000; Foreign National: $1,500,000.

Property types: Single-family residences (attached/detached); 2-4 unit properties; PUDs (attached/detached); Townhouses; Warrantable & Non-warrantable condos; Up to 5 acres maximum.

Purposes include Purchase/R&T and Cash Out. Short-term rental income* *12-month average with 20% expense factor (refinance only)

Guidelines as of October 20, 2026, subject to change. Confirm with your loan officer.

  • Tier 1 (DSCR 1.25+)

    • Up to 80% LTV
    • Credit scores from 660-740+
    • Up to $2.5M loan amount

  • Tier 2 (DSCR 1.00-1.24)

    • Up to 75% LTV
    • Credit scores from 660-740+
    • Up to $2.5M loan amount

  • Tier 3 (DSCR 0.75-0.99)

    • Up to 70% LTV
    • Credit scores 700-740+
    • Up to $2M loan amount

What a DSCR loan is

The lender compares the rent the property can produce with the housing payment on the new loan. Your W-2 or tax-return income is not the main test. Because it is a business-purpose loan, it sits outside the qualified mortgage rules the Consumer Financial Protection Bureau describes for Ability-to-Repay. Ask your loan officer how that applies to the property you have in mind.

How the ratio is calculated

In words, the ratio is gross rent divided by the full housing payment. That payment is principal, interest, taxes, insurance, and HOA dues when there is an HOA. A higher result means the rent covers more of the payment. What a lender will accept varies by program.

Example only, not a quote. If the rent is $1,800 a month and the full housing payment is $1,500, divide 1,800 by 1,500 and the ratio is 1.2. That figure is an illustration. It is not an interest rate, a payment quote, or an offer.

The rent figure usually comes from a lease, or from an appraiser's market rent schedule. Fannie Mae Form 1007, the Single-Family Comparable Rent Schedule, is the standard form appraisers use for that market rent. A DSCR program may use a similar schedule. Ask your loan officer which document the program wants.

What lenders look at besides the ratio

Lenders also look at reserves, credit, down payment, property type, and an appraisal that includes a rent schedule. Each of those varies by lender and program. Prepayment terms are common on investor loans, so ask what they are before you sign. I will not quote a penalty here. Current product detail is on the investors page.

Owning in an LLC, and how DSCR shows up on credit

Vesting the property in a limited liability company is often allowed, and a personal guarantee is often required. Whether the loan reports to your personal credit varies by lender. Business-purpose loans fall outside some consumer disclosure rules. Regulation Z, 12 CFR 1026.3(a), is the business-purpose exemption. That is why the disclosures can look different from a loan on a home you will live in. This is not legal advice. Ask your loan officer, and ask your own counsel if you are vesting in an entity.

Not for a home you will live in

A DSCR loan is for a rental or other investment property, not for a primary residence. If you will live in the home, start with first-time buyer programs or purchase loans.

FAQ

  • Do DSCR loans require an appraisal?

    Generally yes, usually with a rental analysis such as a market rent schedule. What a given program requires varies by lender. Ask your loan officer.

  • Do DSCR loans have a prepayment penalty?

    Many investor loans do, and the terms vary by lender and program. Ask your loan officer before you sign. There is no single penalty I can quote.

  • Can I get a DSCR loan in an LLC?

    Often, with conditions. Vesting in a limited liability company is commonly allowed, and a personal guarantee is often required. Whether that is true for a specific program varies. This is not legal advice. Ask your loan officer.

  • Is a DSCR loan the same as a hard money loan?

    No. A DSCR loan is a longer-term investment mortgage underwritten to the property's rent. A hard money loan is a short-term bridge. They are not the same product.

  • Can I use a DSCR loan for a short-term rental?

    Short-term rental income* can count on a refinance only. *12-month average with 20% expense factor (refinance only). Ask your loan officer about a purchase.

  • Can I do a cash-out refinance with a DSCR loan?

    The investors program lists Cash Out in its loan-to-value matrix. Current LTV limits are on the investors page.

  • What if the ratio is below 1.0?

    Tier 3 covers DSCR 0.75-0.99. Up to 70% LTV. Minimum: DSCR 0.75-0.99: $250,000. Terms are more conservative. Ask your loan officer.

  • Can a first-time investor get one?

    First-time investors. Credit requirements depend on the program and lender overlays. Ask your loan officer.

Sources

Related guides

Ready for next steps?

Get pre-qualified online, free, with no hard credit pull on the starting path.

Get Qualified