Missouri DSCR Loans for STR Financing
Grow Your Portfolio with DSCR Loans
Whether you're purchasing STRs in Branson, rental homes in Kansas City, or duplexes in St. Louis, our DSCR loans
give Missouri investors the flexibility and competitive terms they need to expand. These loans qualify borrowers based on property income rather than personal income documentation. We evaluate whether your investment generates enough rental cash flow to support the loan. Missouri offers a mix of affordable housing markets and strong rental demand, especially in metro and tourism-driven areas. DSCR financing allows you to move quickly on deals, scale with confidence, and bypass the typical delays of traditional underwriting.
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 Missouri real estate investors?
A DSCR loan (Debt Service Coverage Ratio loan) is a form of real estate financing that qualifies investors based on a property’s rental income, not personal income or employment documentation. Lenders calculate whether the property generates enough revenue to cover the mortgage, taxes, and insurance. This model is ideal for scaling a rental portfolio without the constraints of traditional lending. Missouri investors working in cities like Kansas City, St. Louis, and Springfield can use DSCR loans to finance STRs or multifamily units quickly, focusing on cash flow rather than paperwork.
How is DSCR calculated in a typical loan scenario?
In Missouri, DSCR is calculated by dividing the property’s net operating income (NOI) by the total annual debt service, which includes mortgage, taxes, and insurance. For example, if a Missouri rental generates $102,000 in NOI and carries $85,000 in yearly loan obligations, the DSCR would be 1.20. This shows the property earns more than it costs to finance, which increases approval odds. Missouri lenders usually require a DSCR of at least 1.00, though stronger ratios—especially in cities like St. Louis, Kansas City, or Springfield—can lead to better interest rates. Understanding DSCR in Missouri is essential for investors evaluating whether a property’s cash flow meets lender expectations.
What is considered a good DSCR ratio for Missouri investors when applying for financing?
For investors in Missouri, a good DSCR ratio usually starts at 1.20. While some lenders may approve a 1.00 DSCR, that’s typically the bare minimum for eligibility. A 1.20 DSCR in Missouri helps demonstrate to lenders that the property’s income comfortably covers its mortgage, taxes, and insurance. This added cushion improves your chances of receiving better rates and streamlined underwriting. Whether you’re investing in St. Louis, Kansas City, or Springfield, understanding DSCR expectations in Missouri allows you to structure stronger deals and grow your rental portfolio with confidence.
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?
In Missouri, DSCR loan approval is based on the rental income the property generates, not the borrower’s personal financial background. Lenders in Missouri will review lease agreements, short-term rental data, or market rent studies to determine the property’s net operating income. That income is then compared to the property’s debt obligations to calculate the DSCR. A DSCR of at least 1.00 is generally required by Missouri lenders. DSCR loans in Missouri are ideal for investors building portfolios without relying on W-2s. Understanding how rental income is evaluated in Missouri helps streamline financing for income-producing real estate.
What’s the minimum debt service coverage ratio required for approval?
In Missouri, the standard minimum DSCR required for most lenders is 1.00, meaning the property’s income must cover the loan’s annual debt obligations. Some Missouri lenders may accept a DSCR as low as 0.75 if the investor provides strong reserves or equity. However, a DSCR of 1.20 or greater is preferred in Missouri, especially in cities like St. Louis, Kansas City, or Springfield. DSCR loans in Missouri are a popular choice for investors who want to qualify without relying on W-2 income. Understanding Missouri’s DSCR guidelines helps borrowers align their property’s performance with lender expectations to secure more favorable loan terms.
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. Missouri real estate investors often use DSCR loans to bypass the need for personal income verification. Whether in St. Louis, Kansas City, or Springfield, Missouri borrowers appreciate the focus on property cash flow. DSCR lending in Missouri supports portfolio growth with speed and flexibility.
