Can I get a DSCR loan if the property doesn't cash flow?
Yes, within limits. A property whose rent does not quite cover the payment can still be financed down to a 0.75 DSCR, priced 62.5 basis points over the grid and capped at 70% LTV on the current sheet. Below 0.75 the desk does not lend, because the shortfall has to come out of your pocket every month. The levers that fix a thin ratio are more equity, a rate buy-down, an interest-only structure, or a cheaper property — not an optimistic rent estimate.
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.
What are the sub-1.00 tiers?
On the current sheet, 1.00 to 1.19 carries a 25 basis point add-on and full leverage; 0.75 to 0.99 carries 62.5 basis points and drops the maximum LTV to 70%; below 0.75 is a decline. The floor is a policy, not a negotiation. Other lenders draw the line in different places — some stop at 1.00, some at 0.80 — so a file declined elsewhere on ratio alone is worth pricing again.
Why would a lender allow it at all?
Because a DSCR under 1.00 is a description of one moment, not of the asset. A below-market lease that rolls in four months, a property mid-lease-up, a market where taxes just reset, a borrower deliberately buying appreciation — all produce a thin ratio on an otherwise sound file. Extra equity does the work the rent cannot: at 70% leverage the lender's exposure is lower and the borrower has real money at stake.
How do you lift a DSCR?
Four levers, in order of effectiveness. More down payment cuts the loan and the payment directly. A rate buy-down — a quarter point of fee for roughly 25 basis points, up to two points on the sheet — lowers interest for the whole term. An interest-only structure removes principal from the payment at a 25 basis point cost, which can move a ratio sharply. And shopping the insurance line, which is routinely overpriced in the first quote, is the cheapest of all.
What does not count?
Rent you plan to charge after a renovation, an increase you intend at renewal, the seasonal peak of a short-term rental, and other properties' cash flow all sit outside the calculation. Underwriting uses the in-place lease or the appraiser's market rent schedule, whichever the programme calls for. Appreciation is not income either. If the numbers only work on next year's rent, the honest move is a bridge loan now and a DSCR refinance once the rent is real.
What are the other costs of a thin file?
Reserves matter more, not less: six months of PITIA is the floor and a sub-1.00 file is exactly where an underwriter looks hard at it. You will fund the monthly shortfall yourself, so model it for two years and not one. And a thin ratio narrows your exit — refinancing later needs the same test to pass, which means the rent must actually rise. Confirm the tax treatment of a property running at a loss with your CPA.
When is the answer no?
Below 0.75, or when the shortfall is structural rather than temporary — a market where the rent-to-price ratio simply does not support debt, or a property whose expenses are climbing faster than its rent. The desk will say so plainly rather than pricing something that will not close. A smaller loan on a cheaper property is usually a better outcome than a maximum-leverage loan on a property that cannot carry it.
A worked example — moving 0.92 to 1.05
| Property value | $385,000 |
|---|---|
| Starting loan at 75% LTV | $288,750 |
| Market rent | $2,450 / mo |
| Taxes, insurance, HOA | $705 / mo |
| Grid rate — FICO 745, 75% LTV, +62.5 bps sub-1.00 | 7.250% |
| Principal + interest | $1,970 / mo |
| PITIA | $2,675 / mo |
| Starting DSCR — $2,450 ÷ $2,675 | 0.92 |
| — then: drop to 70% LTV | $269,500 |
| Grid rate at 70% LTV, +62.5 bps | 7.125% |
| Buy-down, 1 point for 25 bps | 6.875% |
| Principal + interest | $1,770 / mo |
| PITIA | $2,475 / mo |
| Resulting DSCR — $2,450 ÷ $2,475 | 0.99 |
| — or instead: interest-only at 70% LTV, +25 bps | 7.375% |
| Interest-only payment | $1,656 / mo |
| PITIA | $2,361 / mo |
| Resulting DSCR | 1.04 |
Equity plus a buy-down gets the ratio to the edge; the interest-only structure crosses it, at the cost of no amortisation. Both remain inside the 70% cap that applies below 1.00. Illustrative only.
WHAT WE NEED FROM YOU
- Current lease or market rent evidence. In-place rent, or the appraiser's rent schedule.
- Taxes, insurance and HOA. Real current figures — a stale tax bill hides a thin ratio.
- Two months of bank statements. Reserves are six months of PITIA and are read closely here.
- Entity documents. Articles, operating agreement and EIN letter.
- Purchase contract or payoff statement. Depending on whether you are buying or refinancing.
- A plan for the shortfall. What funds the gap each month until the rent moves.
FREQUENT QUESTIONS
- What is the lowest DSCR you will lend on?
- 0.75. Between 0.75 and 0.99 the rate carries 62.5 basis points and leverage caps at 70% LTV.
- Does a bigger down payment fix a low DSCR?
- It is the most direct lever — a smaller loan means a smaller payment and a higher ratio.
- Can I use projected rent after a renovation?
- No. Underwriting uses in-place or appraised market rent. A bridge loan now and a DSCR refinance later is the usual route.
- Does interest-only help?
- Yes, materially — removing principal from the payment lifts DSCR, at 25 basis points and no amortisation.
- Will other lenders go below 1.00?
- Some will and some stop at 1.00 or 0.80. The floor varies, so a ratio-only decline is worth a second look.
RELATED
Last reviewed 6 September 2026 · Silt Capital lends on 1–10 unit residential DSCR only.