Pennsylvania DSCR Loans for STR Financing

Grow Your Portfolio with DSCR Loans

Whether you're financing STRs in the Poconos, long-term rentals in Philadelphia, or multi-units in Pittsburgh, our DSCR loans  offer Pennsylvania investors flexible financing backed by property income. These loans qualify you based on rental cash flow—not your W-2s, tax returns, or credit history. We assess whether the property can independently support its loan obligations. Pennsylvania’s combination of urban demand and vacation markets gives investors strong potential for year-round returns. With DSCR loans, you can grow your portfolio faster, bypass traditional income documentation, and focus on scalable, income-producing assets. It’s a smart way to invest with fewer restrictions.

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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?


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Frequently Asked Questions

What is a DSCR loan and how does it work for Pennsylvania real estate investors?

A DSCR loan (Debt Service Coverage Ratio loan) lets real estate investors qualify based on the cash flow generated by the property, rather than personal tax returns, credit scores, or W-2s. If the rental income exceeds the property’s debt obligations, the loan may be approved—even with minimal documentation. This makes DSCR financing ideal for LLCs and self-employed investors. In Pennsylvania markets like Philadelphia, Pittsburgh, and the Poconos, DSCR loans are a strategic option for funding both long-term and short-term rentals with fewer approval hurdles.

How is DSCR calculated in a typical loan scenario for Pennsylvania investors?

In Pennsylvania, DSCR is calculated by dividing a property’s net operating income (NOI) by the total yearly debt service, which includes mortgage, taxes, and insurance. For example, if a Pennsylvania rental earns $96,000 in NOI and has $80,000 in annual loan obligations, the DSCR would be 1.20. That means the income exceeds the debt service by 20%, making the property more favorable to lenders. Most Pennsylvania lenders accept a minimum DSCR of 1.00, though 1.15–1.25 is common in markets like Philadelphia, Pittsburgh, and the Poconos. Understanding DSCR in Pennsylvania helps investors target cash-flow-positive properties and secure strong financing options.

What is considered a good DSCR ratio when applying for financing?

In Pennsylvania, a DSCR of 1.20 or higher is typically considered a strong ratio. While lenders may approve loans at the minimum 1.00 level, a 1.20 DSCR shows that the rental property generates enough income to exceed the debt obligations by 20%. This buffer gives lenders confidence and may result in better terms. Whether you're investing in Philadelphia, Pittsburgh, or the Poconos, a solid DSCR in Pennsylvania helps reduce underwriting friction and improve approval odds. Understanding DSCR expectations in Pennsylvania is crucial when evaluating deals for long-term financial sustainability.

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?

Lenders in Pennsylvania approve DSCR loans by evaluating the rental income a property earns—not the borrower’s employment status or tax documents. In Pennsylvania, investors submit income documentation such as leases, STR earnings, or market rent analyses. Lenders calculate the DSCR by dividing this income by the property's annual debt service. If the ratio meets or exceeds 1.00, Pennsylvania investors may qualify—even with minimal personal financial disclosures. DSCR loans in Pennsylvania are widely used by real estate professionals focused on asset-based financing. Understanding how rental income is evaluated in Pennsylvania is key to scaling with confidence.

What’s the minimum debt service coverage ratio required for approval?

Pennsylvania DSCR lenders generally require a minimum ratio of 1.00 to approve a loan. While some Pennsylvania lenders will consider DSCRs as low as 0.75, such loans are less common and require excellent reserves or property strength. A DSCR of 1.20 or above is considered strong in Pennsylvania and can result in better interest rates or fewer reserve requirements. DSCR loans in Pennsylvania are widely used in cities like Philadelphia, Pittsburgh, and Allentown. Understanding the minimum DSCR expectations in Pennsylvania helps investors prepare thoroughly and qualify with fewer delays.

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 Pennsylvania allow for qualification based on property income, not personal financial records. In areas like Philadelphia, Pittsburgh, or Harrisburg, Pennsylvania borrowers can scale portfolios faster with less friction. The simplicity of DSCR lending makes it a go-to solution for many Pennsylvania investors.

Expanding your rental portfolio beyond Pennsylvania? We also offer financing in Ohio and New Jersey , making it easy to scale across the Mid-Atlantic with the same asset-based approval process.