Mississippi DSCR Loans for STR Financing
Grow Your Portfolio with DSCR Loans
Whether you're financing STRs along the Gulf Coast, long-term rentals in Jackson, or investment homes in Biloxi, our DSCR loans
offer Mississippi real estate investors a flexible alternative to traditional financing. DSCR loans are based on rental income, not personal financials. We determine eligibility by reviewing the property’s cash flow and ability to cover the loan, rather than credit scores or tax returns. Mississippi’s affordable entry points and stable rental demand make it ideal for building a high-yield portfolio. Whether you’re scaling up or starting out, our asset-focused loan options help you move forward faster with fewer roadblocks.
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 Mississippi real estate investors?
A DSCR loan (Debt Service Coverage Ratio loan) allows real estate investors to qualify for financing using the rental income from a property rather than relying on tax returns, W-2s, or personal debt-to-income ratios. As long as the property produces enough cash flow to cover the monthly loan obligations, approval is possible—even with limited documentation. This approach is ideal for self-employed investors or those scaling through LLCs. In Mississippi, where opportunities exist in cities like Jackson, Biloxi, and Gulfport, DSCR loans provide a faster, more flexible route to funding short-term and long-term rental properties.
How is DSCR calculated in a typical loan scenario for Mississippi investors?
Mississippi real estate investors calculate DSCR by dividing a property's net operating income (NOI) by its total debt service for the year. For example, if a Mississippi rental earns $66,000 in NOI and carries $55,000 in annual loan obligations, the DSCR would be 1.20. That means the rental income provides a 20% buffer above the required debt payments. Most lenders in Mississippi accept a minimum DSCR of 1.00, but stronger ratios—especially in markets like Jackson, Biloxi, and Gulfport—often lead to better rates and fewer reserve demands. DSCR is a key metric when evaluating cash flow and loan eligibility in Mississippi.
What is considered a good DSCR ratio when applying for financing?
Mississippi lenders generally view a DSCR of 1.20 as a sign of financial health. Although loans can sometimes be approved with a 1.00 ratio, a stronger DSCR gives investors an edge—especially when seeking better interest rates or fewer reserve requirements. Whether you're purchasing rentals in Jackson, Gulfport, or Hattiesburg, maintaining a solid DSCR in Mississippi improves both approval speed and loan terms. Understanding what constitutes a good DSCR in Mississippi is key to making confident investment decisions and reducing long-term financing risks.
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?
Mississippi lenders base DSCR loan approvals on rental income generated by the property—not the borrower’s job history or credit profile. In Mississippi, lenders use signed leases, STR income reports, or rent analyses to determine monthly income. This income is then divided by the loan’s annual debt service to calculate the DSCR. If the ratio is at least 1.00, Mississippi borrowers may qualify without showing personal income. DSCR loans in Mississippi are attractive to real estate investors focused on asset-based financing. Understanding how rental income is evaluated in Mississippi helps ensure a smoother and more predictable loan process.
What’s the minimum debt service coverage ratio required for approval?
Mississippi lenders generally require a minimum DSCR of 1.00 to approve DSCR loans. In rare cases, a Mississippi lender may accept a DSCR of 0.75 if the borrower offers strong reserves or other mitigating strengths. A DSCR of 1.20 or more is recommended in Mississippi to improve rates and reduce reserve requirements. DSCR loans in Mississippi are popular among investors in markets like Jackson, Gulfport, and Hattiesburg. Understanding how lenders in Mississippi evaluate DSCR minimums helps borrowers build deals that meet requirements and support long-term investment growth.
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 Mississippi allow investors to qualify through rental income alone, making it easier to expand without tax return scrutiny. In cities like Jackson and Gulfport, Mississippi borrowers benefit from fewer delays and faster access to capital. This approach helps Mississippi investors build scalable portfolios with minimal friction.
