DSCR Loan 30-Year Fixed Rate Program for Rental Property Investors
A debt service coverage ratio loan is a cash flow mortgage loan measured against the rent a property produces. Bayport Funding’s 30-year fixed rate program brings that structure to buy-and-hold operators holding 1-4 family and small multi-family assets across 36 states.
As The Smart Money Lender®, the firm builds permanent financing around how professional rental operators run a portfolio.
The Smart Money Lender®
What Is a DSCR Loan?
A DSCR loan is a long-term mortgage for an investment property where qualification is based primarily on the property’s rental income rather than the borrower’s personal income.The ratio measures whether gross monthly rent covers a property’s full carrying cost including principal, interest, taxes, insurance, and any association dues.
Qualifying on asset performance suits self-employed operators, entity borrowers, and rental property investors whose reported income reflects depreciation and expense deductions more than actual cash flow.
Bayport’s program serves both individual rental properties and portfolios, with financing from $300,000 to $2.5 million for single-family homes and condominiums and up to $10 million for multi-family properties.
How the Debt Service Coverage Ratio Works
DSCR equals monthly gross rental income divided by monthly PITIA, meaning principal, interest, taxes, insurance, and association dues.
A single-family rental leasing at $3,000 against a $2,500 PITIA payment produces a ratio of 1.20. Anything above 1.00 signals the property earns more each month than it costs to carry.
| Monthly Rent | Monthly PITIA | DSCR |
| $2,400 | $2,600 | 0.92 |
| $2,600 | $2,600 | 1.00 |
| $3,000 | $2,500 | 1.20 |
| $3,250 | $2,500 | 1.30 |
Minimum ratios are set by loan size, property type, and purpose, and the origination team confirms the applicable threshold for each asset.
Related terms appear in the glossary of lending terms.
Underwriting Built Around How Rental Investors Operate
Bayport underwrites DSCR loans based on the property’s income-generating potential. While depreciation, mortgage interest, and operating expenses can reduce reported income on a tax return, a DSCR structure focuses on the property’s rental income and its ability to support the loan.
Entity vesting is treated as standard practice. Rental property investors holding assets in an LLC or corporation for liability and estate planning purposes qualify on the same terms as an individual borrower.
For full-time operators and self-employed borrowers, DSCR financing provides a practical way to qualify based on the property’s rental income rather than personal income. With a 30-year loan structure, this approach can also support continued financing as an investor’s portfolio grows.
Program Parameters
Single Family & Condominium Rental Property Loans
- Individual rental properties
- 1-4 units, townhouses, condominiums
- $300K – $2.5MM
- Up to 80% of LTV
- Minimum credit score 660
- 30 year term
- Pre-pay penalty: 1-5 year options
- No tax returns required
- LLCs or Corporations
- Foreign nationals eligible
Rental Portfolio Loans
- 2+ rental properties
- Single family, 1-4 Units, or townhouses
- $300K – $2.5MM
- Up to 80% of LTV
- Minimum credit score 660
- 30 year fixed rate
- 30 year amortization
- Pre-pay penalty: 1-5 year options
- No cash management required
- LLCs or Corporations
- Foreign nationals eligible
Multi-Family Rental Property Loans
- 2+ rental properties
- 5-30 units or townhouses
- Up to $10MM
- Up to 80% of LTVvalue
- Minimum credit score 660
- 30 year fixed rate
- 30 year amortization
- Pre-pay penalty: 1-5 year options
- No cash management required
- LLCs or Corporations
- Foreign nationals eligible
All DSCR programs require a minimum credit score of 660 and cover purchase, refinance, and cash-out refinance on investment properties. All terms are subject to underwriting approval and program guidelines in effect at time of underwriting.
Operators who acquired an asset through short-term fix and flip financing frequently refinance into the portfolio program once the property is stabilized and leased.
Who Qualifies for a DSCR Loan Through Bayport Funding?
Qualified applicants generally include:
- Buy-and-hold rental property investors with a stabilized 1-4 unit, middle market multi-family, or condominium asset
- Self-employed operators and full-time real estate professionals
- LLC and corporate entity borrowers
- Bridge-to-hold operators refinancing short-term debt into permanent fixed-rate financing
- Middle market multi-family holders, who may also qualify for multi-family and development financing
Every credit decision rests with Bayport’s in-house underwriting team, which holds full authority to approve the file.
Why Rental Property Investors Choose Bayport Funding
Direct Balance Sheet Lender
Bayport originates and asset manages every loan it makes. Terms set at the outset carry through to closing, because the firm that issues them is the firm that funds them.
In-House Underwriting
As a balance sheet lender, Bayport maintains direct control over the lending process and decision-making timeline. Complete files can receive funding in as little as 72 hours.
Named, Credentialed Leadership
Chief Executive Officer Marcia Kaufman draws on more than three decades of experience in mortgage banking and real estate. Head of Origination Harris Lukashok contributes fifteen years in commercial real estate finance, spanning institutional lending at Ladder Capital and Bank of America through private bridge lending, along with an MS in Real Estate Development from Columbia University GSAPP.
Chief Operating Officer Bruce Lawner oversees execution across the loan lifecycle, drawing on over 30 years in mortgage banking that includes founding roles at multiple lending platforms. Director of Business Development Sharon Nachman, recognized as a 2023 HousingWire Insider, leads relationship management across the firm’s borrower and broker network.
Full credentials appear on the leadership team page.
Where the Program Is Available
Bayport is licensed to operate across 36 U.S. states, including Alabama, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, West Virginia, Wisconsin, and Wyoming.
Property level availability can be confirmed through the contact page or at (800) 609-7707.
How to Apply for a 30-Year Fixed DSCR Loan
Five steps run from first contact to funding.
- Loan request. Apply online, call (800) 609-7707, or email info@bayportfunding.com.
- Property review. The origination team evaluates rent, carrying cost, and estimated ratio.
- Term sheet. Bayport issues loan structure, rate type, prepayment options, and closing timeline.
- Underwriting. The credit team approves the file internally.
- Closing. Bayport draws documents, schedules closing, and disburses funds.
Operators building rentals from the ground up who plan to refinance into permanent financing can review the ground-up construction program as an interim step.
Broker Direct Submissions
Mortgage brokers placing DSCR product for investor clients can submit through Broker Direct to directly access Bayport’s credit team.
Recent Transactions
Representative closings:
Frequently Asked Questions About DSCR Loans
Divide monthly gross rent by monthly PITIA. For example, a $3,000 rent against a $2,500 payment gives a ratio of 1.20.
Underwriting evaluates the property's rent, carrying cost, and resulting ratio, along with credit and entity documentation. Personal tax returns aren't part of the file.
Minimum ratios are set by loan size, property type, and purpose. The origination team determines the threshold for a given asset.
Financing is available from $300,000 to $2.5 million for single-family homes and condominiums, and up to $10 million for multi-family properties, subject to underwriting approval.
Yes. Purchase, refinance, and cash-out refinance all qualify.
Yes. Bayport allows LLCs and corporations to qualify for DSCR financing, offering experienced real estate investors greater flexibility than conventional lenders that typically require properties to be held in an individual borrower’s name.
Terms run from one to five years, set at origination and stated on the term sheet.
Both can offer a fixed interest rate with a 30-year amortization. The primary difference is how borrowers qualify. Conventional loans typically rely on personal income and debt-to-income ratio, while DSCR loans focus on the property’s rental income and ability to cover its debt obligations. This approach can provide greater flexibility for investors who hold properties through an entity or whose tax returns reflect significant depreciation.
Request Terms on a Rental Property
A 30-year fixed-rate loan provides predictable principal and interest payments, giving investors greater certainty when projecting returns and planning future acquisitions. That stability is particularly valuable in a higher-rate environment, where financing costs can have a significant impact on long-term investment performance.
Apply Now. Direct inquiries reach the team at (800) 609-7707 or info@bayportfunding.com.
The Speculator® carries Bayport’s market analysis on rental investing and the rate environment.
All terms subject to underwriting approval. Equal Housing Opportunity.
