What is the minimum DSCR to qualify?

Most of TAG Lending Group's investors go as low as a 0.75 DSCR. First-time investors may need a 1.00 or higher, and No-Ratio programs are available when the rent does not need to cover the payment.

How much down payment do I need for a DSCR purchase?

Some DSCR investors allow as little as 15% down on a purchase. TAG Lending Group recommends 25% down so the property cash flows and to avoid Loan-Level Price Adjustments (LLPAs), which can apply when the rent does not cover the mortgage payment. Down payment, reserves and closing costs vary by investor, DSCR, credit and experience.

What rent can be used to qualify for a DSCR loan?

A signed long-term lease, the appraiser's market rent schedule (Form 1007), or short-term rental income such as Airbnb or VRBO based on rental history or market data, depending on the investor.

Can I close a DSCR loan in an LLC?

Yes. DSCR loans qualify on the property's rent, so you can close in your LLC with no tax returns, W-2s or pay stubs, and you can add a partner or family member to title or the LLC to qualify with their credit.

Is there a seasoning requirement for a DSCR cash-out refinance?

No ownership seasoning is required with some of our investors. Others require 6 to 12 months of ownership before a cash-out.

Loan Programs

Rental and Investment Property Financing Program

Q: How do you calculate DSCR?

DSCR = monthly rent divided by monthly PITIA (principal, interest, taxes, insurance and HOA). A 1.00 ratio means the rent covers the full payment. Above 1.00, the property cash flows.

A flexible mortgage solution for real estate investors who want to purchase, refinance, or grow their rental property portfolio with financing designed around investment property goals.

Connect To A Loan Officer Explore Program Details

Program Overview

The Rental and Investment Property Financing Program is designed for borrowers who want to finance income-producing real estate. Whether the goal is to purchase a rental property, refinance an existing investment, or build a larger portfolio, this program gives investors a flexible path to review financing options that support long-term rental property goals.

Program Features

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Designed for borrowers purchasing or refinancing rental and investment properties.

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Can support real estate investors focused on income-producing property opportunities.

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May be used to help structure financing for rental homes, investment properties, and portfolio growth strategies.

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Provides a borrower-friendly path to discuss available loan options for investor scenarios.

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Can help investors review purchase, refinance, and cash flow goals with a loan officer.

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Designed to support conversations around rental income, property performance, and long-term investment strategy.

Why Choose This Program?

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Gives real estate investors a focused financing path for rental and investment property goals.

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Can help borrowers explore flexible options outside a one-size-fits-all mortgage structure.

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Supports investors who want to review financing based on property goals, rental strategy, and long-term plans.

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Helps realtors offer another solution to clients interested in income-producing properties.

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May be useful for borrowers looking to refinance existing rental properties or access better loan positioning.

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Creates a clear next step for investors who want guidance on structuring their property financing.

Who This Program Is Great For?

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Real estate investors purchasing rental properties.

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Borrowers refinancing existing investment properties.

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Clients looking to build or expand a rental property portfolio.

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Investors who want guidance on financing income-producing real estate.

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Borrowers exploring rental income, property cash flow, or long-term hold strategies.

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Realtors working with buyers interested in rental and investment property opportunities.

Rental and Investment Property Financing Program Overview

Download Loan Program

Preview the loan program sheet and download the full Rental and Investment Property Financing Program details instantly.

Download Loan Program

Co-Brand Loan Program

Access the co-branded version to share this Rental and Investment Property Financing Program with your clients and referral partners.

Co-Brand Loan Program

Need Help Structuring a Rental Property Loan?

Connect with a loan officer to review your investment property scenario and get clear guidance on the best next step.

Connect To A Loan Officer

How We Calculate DSCR: The 1.00 Ratio

DSCR = Monthly Rent ÷ Monthly PITIA (principal, interest, taxes, insurance and HOA). A 1.00 ratio means the rent covers the full payment. Example: $2,900 rent ÷ $2,900 PITIA = 1.00. Above 1.00, the property cash flows. Below 1.00? Most of our investors go as low as a 0.75 DSCR, and No-Ratio programs are available when the rent doesn't need to cover the payment.

Rent We Can Use

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A signed long-term lease.

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The appraiser's market rent schedule (Form 1007).

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Short-term rental income (Airbnb, VRBO and similar), based on rental history or market data, depending on the investor.

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Your investing experience affects which rent source and minimum ratio an investor accepts. First-time investors may need a 1.00 or higher.

Flexibility That Helps You Qualify

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Add a partner or family member to title or your LLC and qualify using their credit.

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No ownership seasoning required with some of our investors. Others require 6–12 months of ownership before a cash-out.

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Close in your LLC, with no tax returns, W-2s or pay stubs.

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Minimum 620 credit score. Foreign national programs do not require a U.S. credit score.

Run Your DSCR Numbers

Do you own an investment property today?

Yes shows how to turn that equity into your next properties. No goes straight to the purchase calculator.

How the Equity-to-Portfolio Strategy Works

Refinance the rental you own

A DSCR cash-out refinance replaces your current loan with a larger one, typically up to 75–80% of the appraised value depending on the investor.

Pull out the equity

The difference between the new loan and your current balance, less closing costs, comes back to you as cash.

Use it as down payments

That cash becomes the down payment, closing costs and reserves on one or more income-producing properties.

Qualify each on its rent

Each new purchase can be financed with a DSCR loan that qualifies on that property's rent and can close in your LLC.

How a DSCR Purchase Works

Pick the rental

Choose a property that rents for at least its full payment, or close to it.

Rent qualifies the loan

We use the lease, the appraiser's 1007 market rent or short-term rental data instead of tax returns.

Bring down payment and reserves

DSCR purchases can start at 15% down with some investors. TAG recommends 25% down so the property cash flows and to avoid Loan-Level Price Adjustments (LLPAs) that apply when rent does not cover the payment.

Close in your name or LLC

Close as an individual or in your LLC, then repeat on the next one.

Equity-to-Portfolio Calculator

DSCR Purchase Calculator

Enter your own numbers to see a hypothetical illustration. TAG Lending Group does not quote rates on this page: enter an interest rate assumption to see payments, cash flow and DSCR. Your loan officer will give you actual terms for your scenario.

Property you own

Current property value ($)Current financing

Current loan balance ($)Current interest rate (%)Years remaining on current loan

Monthly rent ($)Monthly taxes, insurance & HOA ($)Cash-out LTV

Next properties

Property you want to buy

Purchase price ($)Down payment (%)

As little as 15% down with some investors. TAG recommends 25% down to cash flow and avoid Loan-Level Price Adjustments (LLPAs) when rent does not cover the payment.

Monthly rent ($)Rent sourceMonthly taxes, insurance & HOA ($)

Assumptions

Interest rate assumption (%)Loan termPayment type

Seller concessions ($) – max 6% of price

Closing costs are estimated for you at 3% (low) to 5% (high).

Cash held back for reserves ($)

Estimated cash out

–After 3–5% closing costs

Additional properties

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Properties controlled

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Total monthly rent

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Est. net monthly cash flow

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DSCR per new property

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Loan amount

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Est. cash to close

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Principal & interest

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Total PITIA

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DSCR

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Est. monthly cash flow

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Before vs. after (monthly)

Enter your name, email and phone to get a PDF of these numbers you can text to yourself or save.

Hypothetical illustration for educational purposes only. Not an offer, a rate quote or a commitment to lend. Results depend entirely on the assumptions entered and do not include vacancy, repairs, management, capital expenses or changes in rent, taxes, insurance or value. Payments shown are principal and interest on the selected loan term (30 years unless changed), or interest only if selected; actual programs, terms, LTV limits, reserves, minimum DSCR and closing costs vary by investor. Minimum 620 credit score; foreign national programs do not require a U.S. credit score. Business-purpose investment property financing only. Investing in real estate involves risk, including loss of equity. Consult your own tax, legal and financial advisors. TAG Lending Group, LLC, NMLS #2329372. Equal Housing Opportunity.

RENTAL & INVESTMENT PROPERTY FINANCING

Rental and Investment Property Financing Program

Program Overview

Program Features

Why Choose This Program?

Who This Program Is Great For?

Download Loan Program

Co-Brand Loan Program

Need Help Structuring a Rental Property Loan?

How We Calculate DSCR: The 1.00 Ratio

Rent We Can Use

Flexibility That Helps You Qualify

Run Your DSCR Numbers

How the Equity-to-Portfolio Strategy Works

Refinance the rental you own

Pull out the equity

Use it as down payments

Qualify each on its rent

How a DSCR Purchase Works

Pick the rental

Rent qualifies the loan

Bring down payment and reserves

Close in your name or LLC

Equity-to-Portfolio Calculator

DSCR Purchase Calculator

Property you own

Next properties

Property you want to buy

Assumptions

Related Programs

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