Looking for a lender who actually closes pure commercial DSCR loans — not residential

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Looking for a lender who actually closes pure commercial DSCR loans — not residential

Stuart Hogan
Member since 2021 · 3 posts · 1 vote

Looking for a lender who actually closes pure commercial DSCR loans — not the residential-with-mixed-use-carveout kind.

My LLC owns one parcel with two separate single-tenant buildings, zoned highway commercial, zero residential component. Both leased 3+ years on 3-year commercial terms, comfortably above 1.6x on actual numbers.

The wall I keep hitting: every well-reviewed DSCR lender I've called requires a residential unit or a residential % mix (one needs ~10% residential minimum) once they see the zoning. One broader commercial lender asked for personal net worth/liquidity and full financials — defeats the point of DSCR.

Has anyone closed a DSCR/NOI-based loan on a 100% commercial-zoned property with no residential units? Direct lender preferred, open to brokers who've actually closed this. Can share more via DM.

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Tim MaloneyBusiness Member
Melbourne Florida · Member since 2026 · 14 posts · 8 votes
2w

I don't see the issue you are facing. There's 50 lenders in my conference who do this exclusively. You may run into LTV caps with the relatively short lease runways but strong credit/property can typically overcome that.

In the commercial space lenders do like to see more financials - the DSCR moniker is a bit of a misnomer so I understand the frustration. Good luck!

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  • Tim MaloneyBusiness Member
    Melbourne Florida · Member since 2026 · 14 posts · 8 votes
    2w

    I don't see the issue you are facing. There's 50 lenders in my conference who do this exclusively. You may run into LTV caps with the relatively short lease runways but strong credit/property can typically overcome that.

    In the commercial space lenders do like to see more financials - the DSCR moniker is a bit of a misnomer so I understand the frustration. Good luck!

    [email protected]
    Elevrion Capital, Inc.57 Reviews
    WebsiteView Page
    1Reply
    • Robin SimonBusiness Member
      Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
      2w
      Quote from @Tim Maloney:

      I don't see the issue you are facing. There's 50 lenders in my conference who do this exclusively. You may run into LTV caps with the relatively short lease runways but strong credit/property can typically overcome that.

      In the commercial space lenders do like to see more financials - the DSCR moniker is a bit of a misnomer so I understand the frustration. Good luck!


      Exactly - CRE Loans are not "DSCR Loans" just because they use a DSCR ratio in underwriting!

      [email protected]
      Harpoon Capital
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    • Stuart Hogan
      OP
      Member since 2021 · 3 posts · 1 vote
      2w

      I Tim, Thanks for your feedback. I think the biggest impact I've seen when discussing these two properties with more of a low doc, DSCR style underwriting method is when I mention or advise to the lender that the properties are located in more of a rural geography they tend to look at the additional risks involved of the loan package they where planning on providing us. I've heard this phrase a few time now: "It's can be rural or commercial, but it can't be both" when a lender is considering on working with us.
      Stuart

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  • Claudia Rodriguez
    Lender · Phoenix, AZ · Member since 2026 · 55 posts · 17 votes
    2w

    You've hit a real and common frustration — a lot of shops advertise "DSCR" but their box is really 1-4 unit residential (non-QM, priced off the property's rent, underwritten a lot like an agency loan). The second you're talking a true commercial asset — 5+ unit, mixed-use, retail, office, industrial — that's a different desk entirely, even though the underlying logic ("does the property's in-place cash flow cover the debt?") is the same idea.

    What you're actually after is small-balance commercial / portfolio lenders who underwrite the asset on its net operating income and debt-service coverage rather than your personal tax returns. A few ways to screen for the real ones fast: ask straight up which property types they hold on their own book vs. broker out (residential-DSCR shops tell on themselves quickly); ask how they calculate coverage (a real commercial lender talks NOI, actual leases/rent roll, and a stress rate, not just gross rent); have your trailing rent roll, a T-12 (or bank statements if it's a lighter-doc program), and a basic P&L ready — the lenders who can actually close commercial ask for those on the first call, the ones who can't keep steering you back toward a 1-4 unit product.

    Occupancy and lease seasoning matter more here than on residential DSCR — a stabilized, leased-up asset like yours (3+ year leases, 1.6x+) is a much easier close than something mid-lease-up. If you share the location and roughly where occupancy sits, folks here can point you at the right kind of lender a lot more precisely.

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    • Robin SimonBusiness Member
      Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
      2w
      Quote from @Claudia Rodriguez:

      You've hit a real and common frustration — a lot of shops advertise "DSCR" but their box is really 1-4 unit residential (non-QM, priced off the property's rent, underwritten a lot like an agency loan). The second you're talking a true commercial asset — 5+ unit, mixed-use, retail, office, industrial — that's a different desk entirely, even though the underlying logic ("does the property's in-place cash flow cover the debt?") is the same idea.

      What you're actually after is small-balance commercial / portfolio lenders who underwrite the asset on its net operating income and debt-service coverage rather than your personal tax returns. A few ways to screen for the real ones fast: ask straight up which property types they hold on their own book vs. broker out (residential-DSCR shops tell on themselves quickly); ask how they calculate coverage (a real commercial lender talks NOI, actual leases/rent roll, and a stress rate, not just gross rent); have your trailing rent roll, a T-12 (or bank statements if it's a lighter-doc program), and a basic P&L ready — the lenders who can actually close commercial ask for those on the first call, the ones who can't keep steering you back toward a 1-4 unit product.

      Occupancy and lease seasoning matter more here than on residential DSCR — a stabilized, leased-up asset like yours (3+ year leases, 1.6x+) is a much easier close than something mid-lease-up. If you share the location and roughly where occupancy sits, folks here can point you at the right kind of lender a lot more precisely.


       This AI slop is really polluting BP and this stuff.  What does this mean"

      "a lot of shops advertise "DSCR" but their box is really 1-4 unit residential (non-QM, priced off the property's rent, underwritten a lot like an agency loan)"

      Yes that is advertising DSCR Loans! This is just AI getting confused and misclassifying and muddying the waters for people more

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      Harpoon Capital
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  • Evan Polaski
    Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    2w

    I have never had an issue getting loans on my retail assets from either local banks or credit unions. My experiences have been that you need a lender local to you or the property.


    That being said, these aren't what I read about as "DSCR" loans for residential. These require 10% liquidity, 1:1 net worth to loan balance, typically full, but could be partial personal, recourse.

    But if you are looking for what I see people posting about in the residential side, the loans where you have no income, no net worth, and still want a non-recourse loan, yeah... those don't exist in my experience on commercial.

    1Reply
  • Taylor Muse
    Member since 2026 · 1 post · 0 votes
    2w

    What Market/markets are you looking in?

    0Reply
    • Stuart Hogan
      OP
      Member since 2021 · 3 posts · 1 vote
      2w

      Currently just in rural North Carolina where the city population is less than 10,000 people. More of a home town hero perspective, where we are helping those long established and tenured tenants(companies) that have a great market share and niche within the community. We are trying to ensure it stays that way, while still building our business, brand, and expanding to bigger markets along the way.

      0Reply
  • Simmy AhluwaliaPro Member
    Lender · Atlanta, GA · Member since 2015 · 1k+ posts · 200 votes
    2w

    All we do is Commercial. Check out our website. Of course, there are guidelines, inclusive of both tenant qualifications and geography. Single tenant net leased properties are easier to finance if it's a credit-based tenant. Most lenders want to see a minimum 5-7-10 year lease terms. Not to say that it can't be done, but I'd need to see the deal first. But, DSCR is available for CRE.

    1Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2w

    Yes there are true DSCR-Only Commercial lenders that can lend on Mixed Use Buildings with a higher Commercial Sqft. Are you owner-occupying the business? Or is the property fully occupied?

    [email protected]818-269-7983
    LuxePrivate Investments LLC 571 Reviews
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  • Natalie Brown
    Lender · MI · Member since 2025 · 7 posts · 2 votes
    1w
    0Reply
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