Indiana DSCR Loans for STR Financing
Grow Your Portfolio with DSCR Loans
Whether you're investing in STRs near Indianapolis, long-term rentals in Fort Wayne, or multi-units in Bloomington, our DSCR loans
provide Indiana real estate investors with the flexibility and competitive rates needed to grow. These loans are designed to qualify borrowers based on rental income rather than personal earnings or W-2 documentation. We evaluate whether your property can generate enough cash flow to cover its loan obligations. With steady demand in both urban and college-town markets, Indiana is an ideal state for portfolio expansion. DSCR loans allow you to bypass the red tape of traditional lending and focus on the asset’s performance. Whether you're scaling your first investment or refinancing an existing one, we’ll help you move forward with confidence.
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 Indiana real estate investors?
A DSCR loan (Debt Service Coverage Ratio loan) is designed for real estate investors who want to qualify based on a property’s rental income instead of tax returns or W-2s. The loan is typically approved when the property can cover its full debt service through rental income. This approach is ideal for investors with multiple properties or irregular income streams. In Indiana cities like Indianapolis, Fort Wayne, and Bloomington, DSCR financing offers a practical solution for building rental portfolios with fewer obstacles and faster approvals than traditional loans.
How is DSCR calculated in a typical loan scenario for Indiana investors?
In Indiana, DSCR is calculated by dividing a rental property's net operating income (NOI) by its total annual debt service. For example, if an Indiana property earns $84,000 and its mortgage, taxes, and insurance total $70,000 annually, the DSCR would be 1.20. A DSCR of 1.00 is usually the minimum requirement, but most Indiana lenders seek higher ratios for improved terms. Whether you’re investing in Indianapolis, Fort Wayne, or Bloomington, DSCR plays a central role in evaluating your rental’s financial viability. Understanding DSCR in Indiana allows investors to confidently compare properties, predict financing outcomes, and optimize their portfolios.
What is considered a good DSCR ratio when applying for financing?
In Indiana, a good DSCR ratio usually starts at 1.20. While 1.00 is the basic minimum accepted by most Indiana lenders, a 1.20 ratio gives investors more leverage and makes the loan application more appealing. Lenders prefer to see that a property’s income exceeds its debt obligations by a reasonable margin. Whether you’re buying rentals in Indianapolis, Fort Wayne, or Bloomington, a strong DSCR in Indiana can improve financing terms and simplify underwriting. Knowing the importance of DSCR in Indiana is key to building a secure and scalable portfolio.
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?
Indiana lenders assess DSCR loan eligibility by focusing on rental income from the property itself. In Indiana, this involves analyzing lease agreements, short-term rental income, or market rent data to estimate income. That number is then divided by the property's annual loan obligations to determine the DSCR. If the DSCR meets or exceeds 1.00, Indiana borrowers may be approved—even without traditional income verification. DSCR loans in Indiana give real estate investors a way to scale their portfolios using asset performance. Understanding how rental income is evaluated in Indiana helps you qualify more efficiently.
What’s the minimum debt service coverage ratio required for approval?
Indiana lenders generally require a minimum DSCR of 1.00 to approve a DSCR loan, meaning the property’s income should fully cover the loan’s debt service. In some cases, Indiana investors may qualify with a DSCR as low as 0.75 if the deal includes compensating strengths. A 1.20 DSCR is typically preferred in Indiana for improved terms and faster approvals. DSCR loans in Indiana provide an excellent option for scaling rental portfolios in cities like Indianapolis, Fort Wayne, or Bloomington. Understanding the DSCR standards in Indiana helps ensure your property meets lender expectations and qualifies for flexible financing.
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. DSCR loans in Indiana provide a streamlined way to qualify using rental income, not personal financials. In markets like Indianapolis and Fort Wayne, Indiana investors appreciate the speed and simplicity of asset-based lending. This makes DSCR financing in Indiana a practical choice for portfolio expansion.
