A DSCR loan offers a smarter way to finance investment properties by qualifying based on a property’s rental income instead of personal income. This means no W-2s or tax returns just a focus on the property’s earning potential.
With this approach, the property can cover its own mortgage, and a well-performing rental can even generate positive cash flow, helping you expand your portfolio faster.
Whether you’re targeting high-yield rentals in Cleveland or stable long-term investments in Columbus, DSCR loans provide a flexible financing solution to grow your portfolio.
Apply for a DSCR loan with HomeAbroad today and start building your Ohio investment portfolio!
Table of Contents
Key Takeaways:
➡️ DSCR loans allow real estate investors to qualify based on rental income rather than relying on personal income.
➡️ Investors can finance various property types with DSCR Loans, including single-family homes, multi-units, and condos, etc.
➡️ With affordable property prices and high demand for rental housing, Ohio offers an excellent environment to maximize the benefits of a DSCR loan.
What is a DSCR Loan?
A DSCR loan(Debt Service Coverage Ratio loan) is a type of loan designed for real estate investors. Unlike traditional loans, which rely heavily on your personal income and borrower’s credit score, DSCR loans evaluate the income potential of the property you’re purchasing.
Lenders use DSCR Ratio to determine whether the property is self-sustaining, ensuring that the income generated is sufficient to cover expenses like the mortgage payments, property taxes, and insurance.
Since DSCR loans prioritize rental income over personal financials, interest rates are typically 1-2% higher than traditional mortgages to account for the flexibility they offer in qualification. You can check the latest DSCR loan interest rates here.
With Ohio’s average rental yield at 6.8%, the state offers strong cash flow potential, making DSCR loans an excellent choice for investors looking to scale their portfolios without traditional income verification.
How to Calculate the DSCR Ratio?
The Debt Service Coverage Ratio (DSCR) is a key metric lenders use to determine if a rental property’s income is sufficient to cover its mortgage payments.
It’s calculated using this formula:
Example
Most lenders require a minimum DSCR of 1.0, meaning the property earns enough rent to fully cover the mortgage payments.
For investors whose properties don’t meet the standard DSCR requirement, HomeAbroad offers a No-Ratio DSCR Program, allowing qualification with a DSCR as low as 0.75 for a higher down payment and interest rates compared to the ideal scenario.
Requirements of DSCR Loan in Ohio
HomeAbroad offers DSCR Loans tailored to unique need of both domestic and foreign investors. here are the requirements for each:
| Features | Domestic Investors | Global Investors |
|---|---|---|
| DSCR Ratio | 1 or Higher (No Ratio DSCR Program Available) | >= 1 for best terms, <1 eligible with higher down payment |
| Credit Score | Minimum 620 | No US credit needed |
| Down Payment | 20% | 25% |
| LTV Ratio | Up to 80% for Purchase and Rate/Term Refinance, up to 75% for Cash Out Refinance | Up to 75% for Purchase and Rate/Term Refinance, up to 70% for Cash Out Refinance |
| Cash Reserves | 2 months | 6 months |
| Property Use | Investment properties (residential and commercial) | Investment properties (residential and commercial) |
| Loan Amount | $75K – $10M | $75K – $10M |
With years of experience assisting both domestic and international investors, HomeAbroad ensures investors get the right loan options, expert insights, and seamless support to maximize their investment potential.
Where We Lend DSCR Loan in Ohio
- Columbus
- Cleveland
- Cincinnati
- Toledo
- Dayton
- Akron
- Youngstown
- Parma
- Dublin
- Middletown
- Mentor
- Lakewood
- Canton
- Lorain
- Avon
- Hilliard
To illustrate how we help investors achieve their goals, let’s look at a real-life example of our client a South African investor who successfully secured a DSCR loan in Ohio.
Case Study: How a South African Investor Secured a DSCR Loan in Ohio
Sarah Williams, a South African investor, was seeking an opportunity to diversify her portfolio with a high-yield rental property in Ohio. However, as a foreign national, she faced several challenges like no US credit history, limited market knowledge and difficulty securing financing.
That’s when she turned to HomeAbroad, where Steven Glick, an expert loan officer, helped her find the right property and secure a tailored DSCR loan that aligned with her investment goals.
Property Details:
Location: 1863 E 30th St, Lorain, OH 44055
Property Value: $140,000
Monthly Rent: $2,656
Rental Yield: 22.77%
Loan Details:
Loan Amount: $105,000
Down Payment: $35,000
Interest Rate: 7.25%
Term: 30 Years
Monthly Mortgage (PITIA): $914
DSCR Calculation:
DSCR Ratio = Gross Rental Income ÷ PITIA
DSCR = $2,656 ÷ $914
DSCR= 2.9
Using HomeAbroad’s AI Property Search Platform, Sarah identified the perfect property that aligned with her cash flow goals. HomeAbroad also facilitated LLC setup, a US bank account, and concierge support, making the entire process smooth and hassle-free.
With years of experience helping investors overcome financing barriers, I can confidently say that DSCR loans stand out as a powerful option. By leveraging rental income instead of personal income, investors can expand their portfolios with fewer restrictions and greater flexibility.
Steven Glick, (Director of Mortgage Sales, HomeAbroad)
Top Places to Invest in Ohio with DSCR Loan
Ohio offers a strong real estate market with affordable home prices and high rental demand. Over the past five years, property values in Ohio have appreciated by an impressive 9.6% annually,making it a prime location for investors
With Ohio’s high rental yields and DSCR loans, investors can secure financing based on rental income and scale their portfolios without traditional income verification.
Here are some top investment cities in Ohio:
City | Rental Type | Rental Yield |
|---|---|---|
Cleveland | Short-Term | 26.3% |
Cincinnati | Short-Term | 13.5% |
Akron | Long-Term | 10.5% |
Dayton | Long-Term | 9.7% |
Columbus | Long-Term | 6.9% |
Need help finding the right investment property? Our AI-powered investment property search platform can help you discover high-performing rentals in Ohio or anywhere in the US!
Get a HomeAbroad DSCR Loan in Ohio
HomeAbroad is a one-stop PropTech and FinTech platform that helps both US and global investors secure tailored DSCR loans with competitive rates and flexible terms, making real estate investment more accessible and profitable.
our AI-driven investment property search and specialized local agents help you find cash-flow-generating properties. We also provide LLC setup, US bank account opening, property management services, and an end-to-end concierge service—everything you need under one roof.
Get a DSCR loan with HomeAbroad today and start growing your real estate portfolio!
Pre-qualify for a DSCR Loan in a Few Clicks.
No Paystubs, W2s, or Tax Returns Required.
FAQs
Can an LLC get a DSCR loan in Ohio?
Yes! DSCR loans can be taken under an LLC in Ohio, making them ideal for real estate investors looking to separate personal and business assets. At HomeAbroad, we assist investors in setting up an LLC and securing financing tailored to their investment strategy.
Are DSCR loans in Ohio available for Airbnb or rental properties?
Yes, HomeAbroad offers DSCR loans in Ohio are for both Airbnb short-term rental properties and traditional long-term rental properties. Our loans are based on the property’s rental income, making them ideal for investors in short-term rental markets like Airbnb.
What happens if my property’s income doesn’t meet the required DSCR?
If your property’s income doesn’t meet the typical DSCR requirements, HomeAbroad offers “No Ratio DSCR loans”. However, this option requires a larger down payment to reduce the additional risk.
At HomeAbroad, we ensure the reliability of our content by relying on primary sources such as government data, industry reports, firsthand accounts from our network of experts, and interviews with specialists. We also incorporate original research from respected publishers when relevant. Discover more about our commitment to delivering precise and impartial information in our editorial policy.
AirDNA: https://www.airdna.co/vacation-rental-data/app/us/illinois
Zillow: Housing Data – Zillow Research
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