Hey BP community, With rates fluctuating and guidelines tightening across some lenders, I’m curious how investors are currently funding their long-term rental deals—especially DSCR loans or other non-traditional options. Questions for the group: • Are you using DSCR loans or sticking to conventional financing? • Have you found any recent challenges with approvals or timelines? • What’s been working best for buy-and-hold or BRRRR strategies right now? Are you using DSCR loans or sticking to conventional financing? Have you found any recent challenges with approvals or timelines? What’s been working best for buy-and-hold or BRRRR strategies right now? I’ve been working closely with investors who’ve had great success securing creative, flexible rental loan solutions, and I’d love to hear how others are navigating the current lending landscape. 📩 Feel free to drop your experience below or message me directly if you want to talk strategy or compare what’s available. Let’s help each other grow!

I'm finding that some DSCR programs are actually better deals than Conventional Loans for Investors. I just locked a rate this afternoon at 6.75% with 0.6% in points. It was a customer that decided to put down 30% with a credit score slightly over 800...so solid borrowers...using an LLC. That being said, I'm finding the biggest challenge to be getting the properties to cash flow positively at higher LTVs. You can certainly do much less down, but to get the DSCR in line, they needed to put 30% down on that particular transaction. The purchase price of a turn-key property vs the rent its garnering, in most cases we're seeing now, are a bit out of wack. The rates aren't really the issue...it seems to be taxes, insurance, and the ratio of purchase price to rents that present the biggest challenges.

Thanks for sharing—really insightful. That 6.75% rate with only 0.6 points is solid, especially for an LLC borrower. You're absolutely right—it's less about the rate and more about making the numbers work with rising taxes, insurance, and the rent-to-price ratio. We’re seeing the same thing: higher LTVs are possible, but they often push the DSCR below acceptable levels unless more capital is put down. Appreciate the transparency—this kind of info really helps the community.

Agreed with Doug! A lot of DSCR loans are falling the 6s right now but insurance in certain areas does hurt the DSCR ratio on some deals

Updated 2 months ago on 08/06/2025. Most recent reply

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Ellisa RiddickPoster

Maryland

Private Lending & Conventional Mortgage Advice

💬 How Are You Funding Your Rentals in Today’s Market?

Ellisa RiddickPoster

Maryland

Posted August 05, 2025 12:26

Hey BP community,

With rates fluctuating and guidelines tightening across some lenders, I’m curious how investors are currently funding their long-term rental deals—especially DSCR loans or other non-traditional options.

Questions for the group:

Are you using DSCR loans or sticking to conventional financing?
Have you found any recent challenges with approvals or timelines?
What's been working best for buy-and-hold or BRRRR strategies right now?

I’ve been working closely with investors who’ve had great success securing creative, flexible rental loan solutions, and I’d love to hear how others are navigating the current lending landscape.

📩 Feel free to drop your experience below or message me directly if you want to talk strategy or compare what’s available.

Let’s help each other grow!

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