Which properties qualify for a DSCR loan?
A DSCR loan works on one to ten residential units that are rent-ready and either leased or leasable: single-family houses, 2–4 unit buildings, small 5–10 unit apartment buildings, townhouses and condominiums. The property must be habitable on the day the appraiser walks it — a working kitchen, working systems and no active major repairs. Mixed-use, ground-up construction, gut rehabs and true commercial buildings fall outside the program and need a different loan.
THE NUMBERS
| Minimum DSCR | 0.75 (0.75–0.99 prices at +62.5 bps, 70% LTV cap) |
|---|---|
| Maximum LTV | 80% purchase or rate-and-term · 75% cash-out |
| FICO floor | 660 (below that the desk does not lend) |
| Loan size | $100K – $3M single · $10M portfolio |
| Reserves | 6 months PITIA · 12 months on a portfolio |
| Prepay options | 5-4-3-2-1 par · 3-2-1 +25 bps · 1-yr +50 bps · none +87.5 bps |
| Typical days to close | 21–30 days from a signed term sheet |
| Rate sheet | Silt Rate Desk — Market Composite Sept 2026 · effective 2026-09-01 |
ILLUSTRATIVE — published program floors, not a quote or a commitment to lend. Subject to underwriting, appraisal and final credit approval.
Single-family, 2–4 unit and 5–10 unit
The single-family rental is the default file and prices at the grid. A 2–4 unit is fully eligible and carries a 25 basis point adjustment on Silt's sheet, with the appraiser producing a Form 1025 small-residential-income report rather than a standard 1004. Five to ten units is still residential on this program but underwrites more like a small building: expect a closer read on the rent roll, unit-by-unit leases and reserves.
Condominiums
Condos qualify and carry a 25 basis point adjustment. What matters is the project, not just the unit: owner-occupancy ratio, the share of units owned by a single entity, litigation, budget and reserve contributions, and any special assessment in force. Warrantable projects are routine. Non-warrantable ones are case by case and depend on why the project falls outside guidelines — a high investor concentration reads very differently from active structural litigation. Expect an HOA questionnaire and allow time for the association to return it.
Short-term and mid-term rentals
A short-term rental qualifies on documented revenue rather than a lease, and prices 37.5 basis points higher. The property must be legal to operate as a short-term rental where it sits — a municipality that has banned or capped them is a real obstacle regardless of the revenue history. Mid-term furnished rentals with genuine leases of thirty days or more are generally underwritten as long-term rentals; tell the desk which you are running before the appraisal is ordered.
Rural, small and unusual
Rural addresses qualify, but they are slower and pricier to appraise and comparable sales can be thin — the appraisal is the risk on those files, not the underwrite. Very small properties can bump the $100,000 minimum loan size on Silt's sheet, which is often the binding constraint in low-cost markets rather than the ratio. Manufactured and mobile homes, log homes and unique construction are treated case by case and vary widely by lender.
The edge cases and where the line falls
A house with a legal accessory dwelling unit is generally fine, and the ADU rent can count when the appraiser supports it. A property with commercial space downstairs is mixed-use and outside this program. Rooming houses, licensed care facilities and student housing rented by the bed are case by case. Ground-up construction and properties mid-gut have no rent to qualify, so they belong on a bridge or fix-and-flip loan until they are finished and leased.
Condition is a hard gate
The appraiser assigns a condition rating, and a property rated in poor condition — or with a required repair noted — will not close until the repair is done and re-inspected. Missing appliances, an inoperable furnace, active roof leaks and unpermitted work in progress all stop a file. If the property needs work before it is rentable, finance the work first and take the DSCR loan as the exit.
Five properties, five answers
| Leased single-family in Ohio | Eligible · grid rate |
|---|---|
| Leased duplex in Tampa | Eligible · +0.25% for 2–4 unit |
| Warrantable condo, leased | Eligible · +0.25% for condo |
| Airbnb with 14 months of platform revenue | Eligible · +0.375% STR, subject to local rules |
| Vacant, gutted, no kitchen | Not eligible · bridge or fix-and-flip first |
Adjustments are cumulative — a short-term-rental condo carries both. Illustrative only.
WHAT WE NEED FROM YOU
- Leases or rent evidence. Every unit, or the appraiser's rent schedule where vacant.
- HOA questionnaire and budget. On a condo, plus notice of any special assessment.
- Short-term rental revenue. Twelve months of platform statements where applicable.
- Certificate of occupancy or permits. Where recent work was done.
FREQUENT QUESTIONS
- Can I finance a property with an ADU?
- Generally yes, and the ADU rent can count where the appraiser supports it and the unit is legal.
- Do you lend on non-warrantable condos?
- Case by case. What matters is why the project is non-warrantable — bring the questionnaire early.
- Is a vacant property eligible?
- Yes, if it is rent-ready. The appraiser's Form 1007 market rent then carries the income.
- Can I finance a mixed-use building?
- Not on this program. Ground-floor commercial space needs a commercial loan.
- Is there a minimum property value?
- Effectively, yes — the $100,000 minimum loan size sets the floor in low-cost markets.
RELATED
TERMS IN THIS LESSON
PART OF DSCR ACADEMY → COURSE 2
IN THIS COURSE
- 2.1Which properties qualify
- 2.2Lease vs market rent
- 2.3Taxes and insurance
- 2.4Condos and HOAs
- 2.5DSCR below 1.0
- 2.6The appraisal
Last reviewed 6 September 2026 · Silt Capital lends on 1–10 unit residential DSCR only.