Need a DSCR lender ASAP, please help!

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Need a DSCR lender ASAP, please help!

Logan WeberPro Member
Member since 2026 · 9 posts · 11 votes

Hi all,

Ive come across a good deal I was hoping to put an offer in on tomorrow and am wanting to do a DSCR loan if possible. The property is in Kentucky and is less than $100k (I read this could cause some issues with some lenders). It's being sold under market value and I'd be walking into $30k+ in equity instantly. The DSCR ratio on this deal is around 2.0, potentially higher. Looking to connect with a lender who would be able to help me with this deal, if you or a lender you know could help me with this please reach out asap, if I don't answer tonight I will get back with you in the morning.

Thank you all for any help!

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2w
Just be advised that rven though it has equity you still will need to put 20-25% down payment. Is it already rented as well? If not then go bridge financing to get it stabilized to a DSCR
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  • Matthew BernalBusiness Member
    Investor · Austin, TX · Member since 2021 · 497 posts · 126 votes
    2w

    hey Logan. I can help! 

    [email protected]832-981-3190
    0Reply
  • Jeffrey Abraham
    Lender · United States · Member since 2020 · 177 posts · 26 votes
    2w

    Give me a call and i send you a quote!

    0Reply
  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    2w

    @Logan Weber You don't have to have financing set up to make the offer. In fact, you may be able to get a better deal if you offer cash and then buy it with a hard money loan and then refinance it into a DSCR loan. I do this all the time and it helps me from needing to leave so much money into the deal.

    To give you an example, I'm purchasing a home or about $320,000. It's been all fixed up but I'm purchasing it for $230,000. They're hoping to buy it directly with the DSCR loan, It would take 3 to 4 weeks and I might lose the deal and I would have to put 25% down meaning that I would have to come in with $57,500 as a down payment Plus whatever the closing costs are. The property would cash flow better. However, if I have to leave $57,500 in every day I buy then I'm going to run out of money eventually. Additionally, The loan will be for 54% of the value which is a very low risk loan for the bank yet I'm still going to be paying pretty high interest rates. So the bank gets what it wants, which is to make money and minimize risk, yet I'm in a situation where I had to leave $57,500 into the property and I have to now save another $50,000 to do the next deal.

    So instead of doing this, I'm not gonna buy the property for $230,000. I'm gonna buy the property with a hard money loan for $320,000 with a $90,000 rehab credit. I will then rent out the property on a lease option where the tenant buyer can buy the property from me for $340,000 within the next 3 years and I can then get a DSCR loan for 75% of $320,000 which is $240,000 and I will only need to leave a minimal amount of money into the property and I should still make a couple hundred dollars of cash flow every month.

    Now, you can do it how you want to, but I would encourage you to consider buying it the way I have described so that you may not have to leave so much money into the deal. 

    Good luck to you. Let us know how it goes. 

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    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2w
    Just be advised that rven though it has equity you still will need to put 20-25% down payment. Is it already rented as well? If not then go bridge financing to get it stabilized to a DSCR
    7e investments53 Reviews
    WebsiteView Page
    2Reply
  • Tyler MccleanPro Member
    Investor · Nassau County, NY · Member since 2022 · 64 posts · 17 votes
    2w

    I can do loan amounts as low as 50k minimum 20% down

    0Reply
  • Nicholas FloydBusiness Member
    NY · Member since 2026 · 146 posts · 48 votes
    2w

    Hey Logan, I may be able to help. The loan amount being under $100K and the property being in Kentucky doesn’t necessarily mean there aren’t options, it really depends on the property and the lender guidelines.

    If you want, send me a DM with the purchase price, property type, estimated rent, and county, and I can take a look at the scenario and see what options may make sense for you.

    0Reply
  • James Driscoll
    Banker · MA · Member since 2026 · 120 posts · 30 votes
    2w

    The hard money to DSCR refi path is solid in concept, but the number that matters most is what the appraisal comes in at when you go to refi, because the DSCR lender is lending 75% of that figure, not 75% of what you paid or what you think it's worth. If the appraiser sees $300k instead of $320k, your loan drops from $240k to $225k and you're leaving more in the deal than you planned. Worth stress-testing the refi scenario at a few different appraised values before committing to the hard money terms.

    James Driscoll

    0Reply
  • Natalie Brown
    Lender · MI · Member since 2025 · 7 posts · 2 votes
    1w

    A sub-$100K loan amount can definitely narrow the lender pool even when the underlying deal is strong. With a DSCR around 2.0 and significant equity going in, I would focus less on whether the deal qualifies generally and more on lenders that do not have higher minimum loan amounts. I would also confirm whether they size the loan off purchase price or appraised value since you're buying below market. Those two items could make a big difference in how this gets structured.

    0Reply
  • Jeffrey Abraham
    Lender · United States · Member since 2020 · 177 posts · 26 votes
    1w
    Quote from @Logan Weber:

    Hi all,

    Ive come across a good deal I was hoping to put an offer in on tomorrow and am wanting to do a DSCR loan if possible. The property is in Kentucky and is less than $100k (I read this could cause some issues with some lenders). It's being sold under market value and I'd be walking into $30k+ in equity instantly. The DSCR ratio on this deal is around 2.0, potentially higher. Looking to connect with a lender who would be able to help me with this deal, if you or a lender you know could help me with this please reach out asap, if I don't answer tonight I will get back with you in the morning.

    Thank you all for any help!


    0Reply
  • Renard BrownPro Member
    Austin, TX · Member since 2026 · 22 posts · 3 votes
    1w

    @Logan Weber

    Hey Logan! I’d be happy to help. I’ll send you a DM so we can connect and discuss how I can help you. 😊

    0Reply
  • Howard R. Lee
    Lender · Frederick, MD · Member since 2023 · 4 posts · 0 votes
    1w

    Hi Logan,

    I'm Howard with Canary Financial. If your Kentucky rental purchase is still active, I invite you to [complete our DSCR application](https://canaryfinancial.com/lending/dscr/apply) so our team can review the financing request.

    Please include the exact loan amount, purchase price, rent and current closing date. Because the property is priced below $100,000, we’ll check your requested amount against our lending partners’ minimum loan requirements.

    If you also have business working-capital needs, you can [explore our business line-of-credit options](https://canaryfinancial.com/capital-solutions/advanced-funding), subject to business eligibility.

    We provide cash back on every closed deal. Each signed contract also includes one month of [NovaVoxx](https://novavoxx.com) free, with setup help from our team.

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1w

    Hey Logan,

    Most DSCR lenders will have a hard minimum loan amount of $100k, however there are a few that can go down to $50k minimum. The main issue with the micro DSCR loans is that they are very expensive relative to the loan size.

    [email protected]818-269-7983
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