DSCR Loan Programs
DSCR loans under $200,000
Most DSCR lenders set a $150k or $200k loan minimum. That cuts off some of the highest-cash-flow markets in the country — Memphis, Cleveland, Birmingham, Indianapolis, parts of Ohio. We have the lender shelf to place sub-$200k DSCR loans where most brokers cannot.
Key terms
- Loans from $100,000 up to $200,000
- Highest cash-on-cash returns in the country are often found here
- Same DSCR qualification — property cash flow, not borrower income
- LLC vesting available
What to watch for
- Rate is typically 0.25%-0.50% higher than standard DSCR — small-balance loans are less profitable for the lender, so the trade-off shows up in rate.
- Lender fee is usually flat ($1,500-$2,000), which is a bigger percentage hit on a small loan.
- Property condition matters more — most sub-$200k properties are in C / C+ neighborhoods. Lenders want clean appraisal + insurance binder.
- Make sure the property cash flows on PAPER, not just in pocket — DSCR is calculated off lease rent, not actual collections.
Frequently asked
What is the absolute minimum loan size?+
We can typically place $100k. Some lenders go to $75k on a case-by-case; rate steepens.
Best markets for sub-$200k DSCR?+
Cleveland, Memphis, Birmingham, Indianapolis, parts of Pittsburgh, Toledo, Detroit (outer suburbs).
Cash-out OK?+
Yes, up to 70% LTV, but a $100k floor on the new loan applies.