Can I get a DSCR loan on a vacant property?
Yes via no-ratio DSCR programs. Standard DSCR requires either a current lease or a 1007 market-rent appraisal showing the property would cover payment.
A DSCR loan needs documented rental income to qualify. Three paths handle a vacant property at close: (1) Standard DSCR with 1007 market-rent appraisal - the appraiser provides comparable rent estimates and the lender uses that figure for DSCR. Works if comp rents would produce 1.0+ DSCR. (2) Short-term rental DSCR with AirDNA Rentalizer - for STR-eligible properties, AirDNA provides projected income from comparable nearby Airbnbs. Often produces a higher number than long-term comps. (3) No-ratio DSCR - removes the DSCR requirement entirely, accepting vacant properties at close. Trade-off is reduced LTV (65-70% typical) and rate premium of 0.25-0.5%. Once the property is rented post-close, no rebalancing is required - the DSCR loan is fixed-rate based on close-time qualification. Vacant properties with imminent leases (signed lease starting within 30 days) sometimes qualify for standard DSCR on the projected lease rate.
People also ask
Will the lender require I have it rented before closing?
No. The 1007 market-rent appraisal addendum substitutes for an active lease in most cases.
What if I plan to rent it as a short-term rental but it is vacant now?
Use STR-DSCR with AirDNA projection, OR use no-ratio DSCR. Both paths work; STR-DSCR usually gives higher LTV.
Got a specific scenario?
Tell us the details - we'll come back with current pricing for your exact situation.
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No-Ratio DSCR
No-ratio DSCR investment property loans. Qualify even if rent does not cover the mortgage payment. Higher down payment in exchange.
STR / Airbnb DSCR
DSCR loans that qualify on short-term rental income. Airbnb, VRBO, and direct-booking properties. Use AirDNA projections or 12-month T12 STR statement.
No-Ratio vs Standard DSCR
No-ratio DSCR or standard DSCR? When the rent-to-payment ratio matters and when it does not. Compare LTV, rate, and qualifying scenarios.