DSCR Loan for Single-Family Rentals: The Baseline Property Type

The single-family rental (SFR) is the default property type every DSCR loan program is built around. If a lender only has one product line, it’s almost always an SFR DSCR loan at 80% LTV. That makes the SFR the cheapest, most flexible, and most competitive property type in the entire DSCR universe — and the baseline against which every other property type in this guide is priced.

This guide is written for investors who already own or are planning to purchase 1-unit rental homes — townhomes, detached single-family, and planned-unit developments (PUDs) — using a non-owner-occupied investor loan. If your target property is a 2-4 unit, condo, mixed-use building, or anything outside a conventional single-family footprint, the pricing and underwriting math changes meaningfully. Those property types each have their own guide in this collection.

Key DSCR parameters for single-family rentals

Single-family rentals carry no property-type rate adjustment. When you see a headline DSCR rate advertised — “DSCR loans from 6.25%” — it is almost always quoted on a 1-unit SFR at 75% LTV, 1.0 DSCR, 740 FICO, with a 5-year prepayment penalty. Every other property type adds to that number.

The SFR lender landscape

Essentially every DSCR lender in the country quotes on single-family rentals. The practical effect is that the SFR investor has real leverage — you should get 3+ quotes on every deal, and the spread between the best and worst lender on the same file is routinely 0.50-0.75% in rate or 1-1.5 points in fees.

National volume leaders for SFR:

• Kiavi — 40,000+ loans funded, 45-state footprint, strong online portal, aggressive on cash-out at 75%, 680 FICO floor for best pricing.
• Visio Lending — DSCR pioneer, SFR-focused, strong on 1.0-1.10 DSCR tier, portfolio exits available for investors with 10+ doors.
• Lima One Capital — Offers bridge-to-DSCR combo for BRRRR, interior/exterior appraisal flexibility, competitive on the 80% LTV tier.
• CoreVest — Aimed at portfolio investors; prices best on 5+ property single-close blankets but also does single-asset SFR at 75-80% LTV.
• Griffin Funding — No-ratio DSCR available on SFR (no DSCR minimum at 65% LTV), up to $5M loan amounts.
• New Silver — Tech-forward, 30-year fixed DSCR, quick closes (14-21 days on clean files), 680 FICO floor.
• Angel Oak — Strong on foreign national SFR, wider program guidelines than most.
• LendingOne — 45-state lender, competitive SFR pricing, strong on 720+ FICO tier.

Wholesale/broker channels: Most of the above also quote through brokers. If you’re working through a mortgage broker, they likely have access to 15-30 DSCR wholesale lenders including Verus, Deephaven, and Acra — all of which have strong SFR programs.

Qualification details

SFR DSCR loans are the most forgiving property type on almost every underwriting axis:

• Entity ownership: LLC vesting is standard. Single-member LLCs, multi-member LLCs, and holding-company structures (parent LLC owning sub-LLCs) are all accepted at the same pricing. Personal guarantees are required on nearly every lender.
• First-time investor: Not a problem on SFR. Most DSCR lenders have no landlord-experience requirement on 1-unit purchases (the 2-4 unit and 5+ unit programs often do).
• Seasoning: 3-6 months ownership for cash-out refinance is typical. A handful of lenders (Kiavi, Lima One, New Silver) offer “delayed financing” exceptions that allow cash-out at 0 days if you purchased all-cash, up to the original purchase price.
• Reserves: 3 months PITI on the subject property for loan amounts under $500K; 6 months for $500K-$1M; 9-12 months for $1M+ or portfolios with 5+ financed properties.
• Property count cap: Most DSCR lenders will do 10-20 financed properties per borrower. Some (CoreVest, Visio) have no cap.

Appraisal and income verification

The SFR appraisal is the cheapest and most straightforward in DSCR lending:

• Appraisal type: Form 1004 (URAR) full interior/exterior appraisal with Form 1007 (Single-Family Comparable Rent Schedule) addendum.
• Typical cost: $550 – $750 in most markets; $800 – $1,100 in high-cost or rural areas.
• Turn time: 7-14 business days.
• Rent determination: The 1007 provides a “market rent” figure based on 3-5 comparable rental properties in the subject’s submarket. The underwriter uses the lower of (a) 1007 market rent or (b) the actual executed lease.
• If vacant at close: 1007 alone is used (this is standard — you do NOT need a signed lease before closing on a DSCR SFR).

A few lenders (Kiavi, Visio) will accept AVM-supported rent determinations on select loans under $400K, which can save $500 and a week of calendar time. Ask about it before ordering the appraisal.

Rate and fee expectations

As the baseline property type, SFR pricing is the most competitive and the most transparent. May 2026 ballparks, conventional-credit borrower (720+ FICO, 1.0 DSCR, 75% LTV, 5-year prepay):

• 30-year fixed rate: 6.25% – 7.50%
• 30-year interest-only (first 10): 6.875% – 7.625%
• 5/6 ARM: 0.25% – 0.50% below the 30-year fixed (rarely worth it given prepay structure)
• Lender fee / points: 1.00 – 2.00 points (origination + admin). Many brokers earn 1.5 points YSP priced-in.
• Underwriting/processing: $1,200 – $1,995 typical.
• Appraisal: $550 – $750.
• Title/settlement: $1,500 – $3,500 depending on state.
• Total closing costs (excluding down payment): 3.5% – 5.5% of loan amount.

LTV add-ons: 80% LTV typically adds 0.25-0.375% in rate vs. 75%. Cash-out at 75% adds 0.125-0.25% vs. rate/term refi.

Prepayment structure: The most common is 5/4/3/2/1 (5% of prepaid balance year 1, 4% year 2, etc.). Every step shorter — 3-year, 2-year, 1-year, or buydown to zero — adds rate. Dropping to no prepay typically adds 0.50-0.875%.

Common pitfalls on SFR DSCR loans

1. Rural properties: “Rural” designation per the appraisal can cap LTV at 70-75% and restrict lender choice. Before falling in love with a property, pull the USDA rural classification and confirm the lender accepts it.
2. Condition category creep: A C4 appraisal with a long “subject to repair” list gets reclassified as C5 by some underwriters. Have the appraiser call C4 items “cosmetic” where possible.
3. Square footage mismatch: If the county assessor lists 1,450 sqft and the appraisal measures 1,620 sqft, the appraiser will often footnote the discrepancy. Lenders pay attention to this — it can slow the file by 5-7 days.
4. Leased below market: If an existing tenant is paying 20% below the 1007 market rent, some lenders will underwrite to the lease anyway (not the market rent). Run the DSCR on both numbers before committing.
5. Short-term rental confusion: Selling a furnished, actively-Airbnb’d SFR? The lender may reclassify it as an STR property and apply a different pricing grid. Ask upfront.
6. HOA on a PUD: Single-family homes inside PUDs carry HOA dues in the DSCR denominator. A $150/mo HOA knocks meaningful DSCR points off a marginal deal.

Strategy notes

SFR DSCR loans are the right tool when:

• You’re buying a 1-unit rental at 75-80% LTV and want 30-year fixed amortization.
• You’re executing BRRRR and need the takeout refinance after a bridge/hard-money purchase-rehab loan.
• You own the property in an LLC or want to transfer to one at close (DSCR is LLC-friendly; conventional Fannie/Freddie is not).
• You’ve maxed out 10 conforming loans under Fannie’s 10-property cap and need a non-QM option.
• Your tax returns show low income from rental depreciation — conventional lenders ding you; DSCR lenders don’t care.

SFR DSCR is the wrong tool when:

• You’ll live in any portion of the property (owner-occupied — DSCR is non-owner-only). Conventional or FHA is cheaper.
• The property DSCR sits below 0.65 even at 65% LTV — at that point the property doesn’t cash flow enough for any DSCR lender to touch.
• You need a loan under $75K — most DSCR lenders have a $75K-$100K floor. Consider a local bank or small-balance portfolio lender.
• The property is in a declining-market zip code flagged by the appraiser — pricing and LTV are much worse.

Related tools

• Model your deal with the DSCR Calculator
• Pre-qualify yourself with the Qualification Estimator
• Compare today’s rates on the Rates page
• See side-by-side comparisons in Best DSCR Lenders
• New to DSCR? Start with What Is a DSCR Loan
• Full eligibility checklist in DSCR Loan Requirements
• Fee breakdown in Closing Costs and Fees

Ready to get 3+ matched quotes on your SFR deal? Get matched with DSCR lenders in under 5 minutes.

Frequently asked questions