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- Scale your portfolio with confidence
For serious real estate investors, reaching the 10-property threshold is a major milestone—but also a common financing roadblock. Traditional lenders often limit the number of financed properties, making it tough to scale further.
Enter DSCR loans. In 2025, these investor-friendly loans are unlocking the next level of portfolio growth by qualifying based on property cash flow, not personal income.
In this article, you’ll learn how DSCR (Debt Service Coverage Ratio) loans work, why they’re ideal for large portfolios, and how to strategically scale beyond 10 properties—without hitting a financing ceiling.
What Is a DSCR Loan?
A DSCR loan is a type of non-QM (non-qualified mortgage) product designed for real estate investors. Instead of using your personal income, credit profile, or employment history to qualify, lenders focus on the cash flow of the property itself.
DSCR Formula:
DSCR = Gross Monthly Rent ÷ Monthly Debt Payment
- A DSCR of 1.0 means the property breaks even.
- Most lenders prefer DSCR ≥ 1.1, though some allow as low as 0.75 for strong borrowers.
Learn more about how DSCR loans work here
Why DSCR Loans Are Best for Portfolios Exceeding 10 Properties
Traditional mortgages (conventional, FHA, VA) cap financed properties at 10. That means even seasoned investors with strong cash flow may hit a wall.
DSCR lenders don’t apply this cap. You can:
- Finance more than 10 properties—even 50+
- Qualify each property individually based on rental income
- Avoid complex tax return or income verification
- Use LLCs or corporations for title holding
Want to scale fast with DSCR loans?
Connect with a lender who specializes in large portfolios
How to Use DSCR Loans to Scale Beyond 10 Properties
1. Structure Properties Under LLCs
Many investors separate properties into individual LLCs. Most DSCR lenders allow or even prefer business entities, which also protects your personal credit and liability.
2. Avoid Personal DTI Caps
Unlike conventional financing, DSCR loans don’t count against your personal debt-to-income ratio, allowing you to grow aggressively.
3. Bundle or Stagger Loans
Some lenders offer portfolio DSCR loans to finance multiple properties under one loan. Others prefer one property per loan—which allows flexible exits and refinancing later.
4. Plan for Down Payments
Most DSCR loans require 20–25% down. Consider cash-out refinancing on existing properties to fund new acquisitions.
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2025 DSCR Loan Requirements for Large Portfolios
| Requirement | Typical DSCR Loan Standards (2025) |
| Minimum Credit Score | 680 (some as low as 620) |
| DSCR Ratio | 1.0–1.25 preferred (some allow 0.75) |
| Down Payment | 20–25% |
| Property Types | 1–4 unit, multifamily, short-term |
| Loan Amounts | Up to $5M per property |
| Number of Financed Props | Unlimited (depending on lender) |
Top Lenders Offering DSCR Loans for Large Portfolios
These lenders are investor-focused and ideal for scaling:
- Visio Lending
- CoreVest Finance
- Kiavi
- Lima One Capital
- RCN Capital
- Velocity Mortgage Capital
Each offers unique terms for multi-property financing. Some allow blanket DSCR loans across entire portfolios.
Compare rates and options for portfolio investors
FAQs About DSCR Loans for Scaling Beyond 10 Properties
Can I have more than one DSCR loan at a time?
Yes. Most investors hold multiple DSCR loans—one per property or bundled under a portfolio loan.
Will lenders look at my tax returns?
No. DSCR loans are based on the property’s income, not your personal tax documents.
Can I refinance existing rentals into DSCR loans?
Absolutely. Many investors refinance out of conventional loans to remove the 10-loan cap and free up personal credit.
Read Next
- Top DSCR Loan Programs in 2025: Rates, Terms & Lender Comparisons
- How to Use a DSCR Loan for Cash-Out Refinancing on Rental Properties
Final Thoughts
If you’ve already built a 10+ property portfolio and want to keep growing, DSCR loans are your gateway to expansion. By focusing on rental income instead of your personal financials, you can scale efficiently, maintain flexibility, and unlock capital for further investments.
Stop letting outdated lending rules slow you down.
Get matched with DSCR lenders who support large portfolios
Need a custom lending strategy for your investment goals?
Schedule a 1-on-1 call with a portfolio loan advisor
Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
