Virginia DSCR Loans for STR Financing

Grow Your Portfolio with DSCR Loans

Whether you're investing in STRs in Virginia Beach, multifamily units in Richmond, or long-term rentals in Arlington, our DSCR loans  offer Virginia investors asset-based financing with competitive terms. These loans focus on property income—not your personal finances or employment history. We assess whether the asset generates enough rental income to fully support the loan. With a mix of military hubs, tourism, and urban rental demand, Virginia offers consistent opportunities for real estate growth. DSCR loans allow you to move fast and scale your portfolio without getting tied up in conventional lending requirements.

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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?


We offer lending services in all 50 states!

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Frequently Asked Questions

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

A DSCR loan (Debt Service Coverage Ratio loan) is a financing solution that lets real estate investors qualify using a property’s rental income instead of personal earnings, employment history, or tax returns. If the property’s income covers the full debt service—including mortgage, taxes, and insurance—the loan may be approved with minimal documentation. This model is ideal for investors building through LLCs or scaling rapidly. In Virginia, where rental demand is strong in markets like Richmond, Arlington, and Virginia Beach, DSCR loans offer flexibility and speed that conventional loans can’t match.

How is DSCR calculated in a typical loan scenario?

Virginia investors calculate DSCR by dividing a property’s net operating income (NOI) by its total annual debt obligations, such as principal, interest, taxes, and insurance. For example, if a Virginia rental earns $96,000 in NOI and carries $80,000 in yearly loan costs, the DSCR would be 1.20. That extra 20% in coverage strengthens a loan application. A DSCR of 1.00 is the minimum required by most Virginia lenders, but a stronger ratio—particularly in cities like Richmond, Arlington, or Virginia Beach—may lead to better rates. Understanding DSCR in Virginia is key for financing both short- and long-term investment properties.

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

A strong DSCR in Virginia typically starts at 1.20. While a 1.00 ratio may satisfy the lowest bar for approval, it’s often not competitive—especially in active markets like Richmond, Virginia Beach, or Arlington. A 1.20 DSCR in Virginia demonstrates financial reliability and may result in lower interest rates, easier underwriting, and greater flexibility for real estate investors. Understanding DSCR benchmarks in Virginia helps you structure stronger deals and scale your rental holdings more efficiently.

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?

Virginia lenders approve DSCR loans by focusing on how much income the property generates—not the borrower’s employment or tax history. In Virginia, rental income is typically verified through lease agreements, vacation rental reports, or rent appraisals. This income is then compared to annual loan payments to calculate the DSCR. A ratio of 1.00 or higher is generally required by Virginia lenders. DSCR loans in Virginia offer flexible qualification paths for self-employed or non-traditional borrowers. Understanding how rental income is evaluated in Virginia is essential for real estate investors who want to qualify based on asset performance.

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

Virginia lenders generally require a minimum DSCR of 1.00 to approve a loan, which shows the property can fully support its debt obligations. Some Virginia lenders may allow a DSCR as low as 0.75, especially for experienced borrowers with strong reserves. A DSCR of 1.20 or more is ideal in Virginia markets like Richmond, Norfolk, or Alexandria. DSCR loans in Virginia give investors flexibility by focusing on property cash flow rather than personal income. Understanding Virginia’s DSCR minimums allows borrowers to tailor deals for approval and 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. Virginia investors choose DSCR loans when they want to qualify without relying on W-2s or tax documents. In markets like Richmond and Virginia Beach, borrowers benefit from streamlined underwriting and property-focused approvals. DSCR lending in Virginia helps real estate investors scale quickly and effectively.

Expanding your rental portfolio beyond Virginia? We also offer financing in North Carolina and Maryland , making it easy to scale across the East Coast with the same asset-based approval process.