Idaho DSCR Loans for STR Financing
Grow Your Portfolio with DSCR Loans
Whether you're purchasing rentals in Boise, vacation cabins near Coeur d’Alene, or multifamily units in Idaho Falls, our DSCR loans
give Idaho investors a flexible, asset-based way to scale. DSCR loans rely on property income instead of W-2s or credit scores. We assess whether your asset’s cash flow can support the loan, making the process simple and investor-friendly. With Idaho’s growing rental demand and favorable market conditions, DSCR loans allow you to expand faster with fewer underwriting obstacles. Our team works with investors at every stage, from first-time buyers to experienced landlords.
How to qualify
To obtain a quote, we will need the following information:
Property Value and
Purchase Price
Down Payment
Amount
Credit Score
Asset Types
- Single Family Homes
- Townhomes
- Condos
- 2 - 4 Units (Duplex, Triplex, Quadplex)
- Multi-Family: 5 - 8 Units
- Mixed-Use: 2 - 8 Units
- Multi-Family: 9+ Unit
Loan Terms
- Loan Sizes:
$100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
- Purchase LTV:
Up to 85%
- Rate & Term Refinance LTV:
Up to 80%
- Cash Out Refinance LTV:
Up to 80%
- Amortization:
30 Year % 40 Year Amortization Options Available
- Term Lengths:
5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
- Floor Rate:
5.50% (subject to change daily due to market volatility)
- Full Recourse
with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
- DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
- Vesting:
Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
- Average Time to Close:
14 to 35 days
Wondering if you qualify for investment property financing in your area?
We offer lending services in all 50 states!
Frequently Asked Questions
What is a DSCR loan and how does it work for Idaho real estate investors?
A DSCR loan (Debt Service Coverage Ratio loan) allows investors to qualify for financing using the rental income of a property rather than their personal income, credit score, or tax documentation. If the property generates enough income to cover its monthly debt obligations, the loan can often be approved with less paperwork. In Idaho markets like Boise, Coeur d’Alene, and Idaho Falls, where both STRs and long-term rentals are in demand, DSCR loans provide a streamlined option for building or expanding a portfolio without traditional income-based barriers.
How is DSCR calculated in a typical loan scenario for Idaho investors?
In Idaho, DSCR is calculated by dividing a property’s net operating income (NOI) by the total annual debt service—including mortgage payments, property taxes, and insurance. For instance, if a rental in Idaho generates $96,000 in NOI and has $80,000 in yearly debt obligations, the DSCR would be 1.20. This means the income exceeds the loan cost by 20%, which increases lender confidence. Most Idaho lenders require a minimum DSCR of 1.00, but higher ratios are often preferred in markets like Boise, Coeur d’Alene, and Idaho Falls. Understanding DSCR in Idaho helps investors analyze whether a property’s cash flow can support financing—and whether they’ll qualify for better terms.
What is considered a good DSCR ratio when applying for financing?
In Idaho, a DSCR of 1.20 or higher is typically considered strong. While some Idaho lenders may accept a 1.00 DSCR, this is often the minimum and may come with stricter loan terms. A DSCR of 1.20 shows that your rental income exceeds the debt service by 20%, reducing lender risk and improving your financing options. Investors in Idaho markets like Boise, Coeur d'Alene, and Idaho Falls should aim for a stronger DSCR to secure more favorable loan terms and ensure their properties are cash-flow positive. Understanding DSCR benchmarks in Idaho is key to long-term portfolio growth.
Can I qualify for a DSCR loan if my personal income is limited?
Yes, you can qualify for a DSCR loan even if your personal income is limited. DSCR loans, often referred to as Airbnb loans when used for short-term rental properties, are designed to approve borrowers based on the income the property generates—not personal W-2s, tax returns, or debt-to-income ratios. Lenders calculate the property's debt service coverage ratio to determine if the income is sufficient to support the loan. As long as the DSCR meets the required threshold—usually 1.00 or higher—you can often be approved regardless of personal income. This makes Airbnb loans ideal for self-employed investors, business owners, or anyone scaling a rental portfolio without relying on traditional underwriting standards.
How does a lender evaluate rental income when approving a DSCR loan?
Idaho lenders approve DSCR loans by focusing on the rental income the property generates, not the borrower's personal financials. In Idaho, lenders analyze income from long-term leases, market rent analysis, or STR earnings. That income is then compared to the loan’s debt service to calculate the DSCR. If the property meets the required DSCR—typically 1.00 or higher—Idaho borrowers may qualify without tax documents or W-2s. DSCR loans in Idaho support flexible financing for investors of all sizes. Understanding how rental income is evaluated in Idaho can give you a competitive edge when scaling your real estate business.
What’s the minimum debt service coverage ratio required for approval?
Idaho DSCR lenders generally require a minimum ratio of 1.00 to approve a loan. Some Idaho lenders may consider 0.75 DSCRs with strong compensating factors like excellent credit or significant reserves. A DSCR of 1.20 or better is ideal in Idaho to unlock better terms and faster approval. In growing markets like Boise or Coeur d’Alene, lenders in Idaho may have tighter standards depending on risk exposure. DSCR loans in Idaho give investors a flexible alternative to traditional financing. Understanding Idaho’s DSCR thresholds allows you to target properties that meet lender expectations and streamline your financing process.
Who should consider using a DSCR instead of a traditional loan?
These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. Idaho borrowers often turn to DSCR loans when personal income documentation is limiting or unavailable. Whether in Boise or Coeur d'Alene, Idaho investors use these loans to qualify based on a property’s rental cash flow. DSCR financing in Idaho is ideal for both STR and long-term rental expansion.
