Kentucky, often called the Bluegrass State, where rolling hills meet world-famous bourbon distilleries and the Kentucky Derby puts Louisville on the global stage, is drawing attention for more than its traditions. International real estate investors are increasingly looking at Kentucky for its affordable housing, steady rental demand, and tax structure that supports long-term investing.
From a duplex in Lexington to a single-family rental in Louisville or a small multi-unit property in Bowling Green, the state offers opportunities where rental income can realistically support ownership costs and generate consistent cash flow.
With HomeAbroad DSCR loans, foreign nationals can access these opportunities without relying on US income, US credit history, or permanent residency. Financing is structured around the property’s rental performance, making it easier to invest when the numbers work.
DSCR Loan Kentucky Snapshot
No US Credit History
US Income and Credit History Not Required
Minimum Down Payment
25%
Maximum Loan Amount
$10M
Fast Track Closing
27 Days
DSCR Loan Kentucky Program Terms
Feature
HomeAbroad DSCR Loan
DSCR Ratio
Best terms typically apply at DSCR ≥ 1.0. If DSCR is below 1.0, the loan may still be eligible with a higher down payment. Our No-Ratio DSCR option (DSCR 0 to 1) can support foreign national investors buying properties with clear income upside, even when the property’s rent does not fully cover the monthly payment.
US Credit Score
Not required for foreign nationals
Loan Amount
$100K – $10M
Down Payment
25%
LTV
Up to 75% (Purchase) Up to 75% (Rate and Term Refi) Up to 70% (Cash-Out Refi)
Cash Reserves
6 months
Table of Contents
How DSCR is Calculated?
DSCR underwriting starts with a simple formula:
What counts as “Gross Rental Income” for DSCR Underwriting
Market rent supported by the appraisal rent schedule (commonly used for 1 to 4-unit rentals)
Executed lease rent, when acceptable to the lender and consistent with market support
What is included in PITIA
Principal
Interest
Taxes (Kentucky property taxes and applicable assessments)
Insurance (including wildfire-related costs where relevant)
Association dues (HOA), if applicable)
Example
Calculating the DSCR Ratio for a Kentucky Property:
Director of Mortgage Sales, HomeAbroad | NMLS# 1231769
“In Kentucky, ratios like this work well because entry prices are reasonable. When the payment stays aligned with rent from day one, DSCR underwriting stays clean through closing.”
A DSCR of 1.20 means the property’s rent comfortably exceeds its monthly ownership costs, producing $225 in positive monthly cash flow and making it well-suited for DSCR financing. You can verify your own scenario using our DSCR Ratio Calculator.
However, not all properties will meet this threshold, so we also offer our No-Ratio DSCR Program for properties with a DSCR between 0 and 1. This option allows investors to still qualify for financing, but it comes with a slightly larger down payment (a 5% hit to LTV) and higher interest rates. This program focuses less on rental income and more on other factors, giving investors with strong long-term plans the opportunity to secure financing.
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Valid Passport
Current passport from your home country
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Proof of Funds
Bank statements showing down payment + 6 months reserves
Benefits of DSCR Loans in Kentucky
DSCR loans offer several advantages for foreign nationals investing in Kentucky:
Qualification Based on Rental Income, Not Personal Income Documentation
At HomeAbroad, we do not rely on US W2s, US paystubs, or US tax returns to qualify a foreign national DSCR loan. We qualify you primarily on the property’s rental income profile and the strength of your overall file.
Faster Closing Times
DSCR loans can move quickly when the property, rent support, and documentation are straightforward. Appraisal and rent schedule timing still matters, especially in competitive Kentucky markets. At HomeAbroad, we can close your deal in as less as 27 days.
Scale Your Portfolio Faster
International real estate investors like DSCR lending because it creates a repeatable qualification approach across multiple properties. When you understand how rent, PITIA, and reserves will be evaluated, it becomes easier to screen deals before you write offers.
Foreign National Friendly
DSCR loan is one of the best mortgage options for foreign nationals, who often face friction with conventional underwriting. DSCR lending is commonly used to reduce that friction because the property performance drives the qualification logic.
Case Study: DSCR Loan Success for a UK Investor in Louisville, Kentucky
James Turner, a UK national living in the US on an E-2 visa, wanted to acquire a rental duplex in Louisville after identifying the city as a strong cash-flow market with reasonable entry prices. Although the deal fundamentals were solid, James struggled to move forward with conventional lenders due to his limited US credit history and short time in the country, which stalled his investment timeline.
James worked with HomeAbroad to structure the purchase using a DSCR loan. Instead of underwriting his personal income or credit profile, the loan was evaluated based on the property’s rental performance and full ownership costs.
Director of Mortgage Sales, HomeAbroad | NMLS# 1231769
“James didn’t had a usable US credit profile, so we removed borrower credit from the decision entirely. We underwrote the Louisville duplex on verified market rent, locked-in taxes and insurance, and structured the loan so the property could stand on its own”
With a DSCR of 1.27, the property comfortably covered its mortgage obligations and generated approximately $410 in positive monthly cash flow, allowing James to close in 29 days and add a stable, income-producing US asset to his portfolio.
Kentucky Rental Market Overview
Kentucky offers a more balanced rental environment by US standards, where home prices and rental income tend to align more naturally than in higher-cost markets. That pricing dynamic gives investors more room to structure DSCR-backed deals around sustainable rent support, rather than relying on tight margins or aggressive rent assumptions.
As per our data, the key market statistics for 2025 are:
Median gross rent in Kentucky: approximately $1,345/month
Median value of housing units: around $224,082
Where We Lend DSCR Loans in Kentucky
HomeAbroad offers DSCR loans across Kentucky, providing tailored support for investors in top-performing cities, including Louisville, Lexington, Covington, Somerset, and more.
Here are a few cities in Kentucky where we offer DSCR Loans.
Louisville
Lexington
Somerset
Bowling Green
Williamstown
Bardstown
Frankfort
Stanton
West Liberty
Tompkinsville
Clay City
Greenville
Middlesboro
Newport
Williamsburg
Top Places to Invest in Kentucky with a DSCR Loan
Kentucky stands out for DSCR investors because rental income and pricing stay well aligned. According to our data, the state delivers an average rental yield of about 7.3%, making it easier for properties to support debt service. That balance creates solid opportunities across key cities for investors focused on cash flow rather than speculation.
Here are some of the top-performing cities in Kentucky to consider for your DSCR loan investment:
The investment properties shown below are pulled from the HomeAbroad property-search platform and can change daily. Review each listing’s rent assumptions, cash flow, and DSCR inputs before you underwrite an offer.
City
Rental Type
Rental Yield
Louisville
Short-Term
23%
Somerset
Short-Term
14.3%
Lexington
Short-Term
13.6%
Covington
Long-Term
7.7%
Newport
Long-Term
7.4%
Louisville: High-Demand STR Market with Strong Cash Flow
Louisville combines tourism, events, and business travel, supporting one of Kentucky’s most active short-term rental markets. High occupancy and solid nightly rates continue to drive strong returns in well-located neighborhoods.
Median Home Price: $252,069
Average Rent: $1,340/month
What this means for investors: When STRs are allowed, Louisville properties can meet DSCR requirements more easily thanks to consistent bookings and healthy cash flow, especially in central neighborhoods close to attractions and employment hubs
Investment Properties Listed Today on Sale in Louisville
Somerset: Lake Cumberland STR Market with Seasonal Upside
Somerset, located near Lake Cumberland, has become a reliable vacation-rental market driven by boating, outdoor tourism, and seasonal events. STR yields around 14% make it one of Kentucky’s stronger secondary markets.
Median Home Price: $188,363
Average Rent: $1,144/month
What this means for investors: Lake-adjacent properties benefit from strong summer demand and steady weekend traffic off-season, creating solid cash flow potential for DSCR-backed vacation rentals where local rules allow.
Investment Properties Listed Today on Sale in Somerset
Lexington: University Demand with Consistent Rental Stability
Lexington combines Bluegrass tourism with the economic stability of a major university market. Attractions like the Kentucky Horse Park, bourbon trails, and the University of Kentucky support year-round visitor traffic and steady rental demand.
Median Home Price: $318,873
Average Rent: $1,553
What this means for investors: Lexington offers dependable occupancy driven by students, visiting professionals, and tourists. The mix of short-term and long-term demand creates predictable cash flow and lower volatility, making it a strong fit for balanced DSCR strategies.
Investment Properties Listed Today on Sale in Lexington
Covington: Walkable Historic Market with Reliable Rent Demand
Covington blends historic neighborhoods with close proximity to Cincinnati, supporting steady long-term rental demand from commuters, remote workers, and local professionals.
Median Home Price: $213,264
Average Rent: $1,378/month
What this means for investors: Fast leasing cycles and consistent tenant demand make Covington a stable DSCR market. Renovated historic homes and small multifamily properties tend to attract reliable renters while offering long-term appreciation potential.
Investment Properties Listed Today on Sale in Covington
Newport: Cross-River Rental Market with Consistent Demand
Newport, located directly across the river from Cincinnati, benefits from commuter-driven demand while retaining Kentucky’s relative affordability. Proximity to downtown jobs, entertainment districts, and transit keeps long-term rentals moving quickly.
Median Home Price: $236,398
Average Rent: $1,477
What this means for investors: Newport offers reliable occupancy and stable cash flow, driven by professionals and families who value location. Low vacancy and steady rents make it a dependable DSCR-friendly market for long-term holds.
Investment Properties Listed Today on Sale in Newport
Kentucky Specific DSCR Underwriting Factors that Investors Overlook
Property tax stability with county-level swings
Kentucky’s effective property taxes are relatively low by national standards, but the variation by county matters. Areas like Fayette County can price differently than surrounding markets once school district levies are included. In our experience, small differences in millage rates are often what tighten DSCR on otherwise solid deals.
Director of Mortgage Sales, HomeAbroad | NMLS# 1231769
““In Kentucky, most DSCR issues don’t come from rent. They come from details investors gloss over, like county tax differences or flood insurance near river corridors. When those costs are validated early, the DSCR usually holds exactly where we expect it to.”
City-level STR rules
Short-term rentals aren’t governed statewide. Cities like Louisville require registration and zoning compliance, and some neighborhoods restrict STRs altogether. Verify permits before relying on STR income for DSCR qualification.
Insurance exposure beyond coastal risk
While Kentucky avoids hurricane exposure, tornado corridors, river flooding, and winter storms still affect insurance pricing. Properties near the Ohio River may require flood coverage. What we see often is investors underwriting rent correctly but underestimating insurance add-ons that move PITIA more than expected.
Strategic & Future Considerations for Foreign Nationals Investing in Kentucky
Kentucky’s future growth is tied to its position as a logistics hub, emerging tech investment, and expanding healthcare infrastructure. For international real estate investors, these trends can help identify high-performing submarkets.
Here’s what global investors must consider when evaluating future-oriented opportunities across the state.
1. Logistics-driven housing demand around Louisville
The presence of UPS Worldport continues to anchor employment growth in and around Louisville. What we’re seeing is housing demand gradually pushing into nearby suburbs such as Shepherdsville and Elizabethtown, where rents remain more affordable but tenant demand stays consistent.
2. Momentum in secondary cities
Cities like Bowling Green and Owensboro are drawing attention for their lower entry prices and improving rent fundamentals. In our experience, these markets often deliver stronger DSCR margins because acquisition costs stay controlled while demand improves.
3. Infrastructure improving regional connectivity
Projects tied to the I-69 corridor and Ohio River bridge upgrades are reshaping travel and freight movement across the state. These upgrades tend to lift rental demand in adjacent areas before pricing fully adjusts, which is where early-stage investors often find value.
4. Strategy alignment matters
Kentucky rewards targeted approaches. Workforce housing near logistics hubs, universities, and medical centers tends to produce stable, repeatable cash flow for long-term holds. Tourism-linked strategies can also work along horse country and bourbon trail corridors, but only where local regulations support short-term rentals.
Kentucky DSCR Loan FAQs
Can foreign nationals apply for a DSCR loan in Kentucky without US credit history?
Yes. Foreign nationals can finance Kentucky investment properties using DSCR loans through HomeAbroad. Qualification is based on the property’s rental income, not on US credit history, employment, or residency status.
Can I buy a Kentucky investment property through an LLC?
Yes. DSCR loans can be structured under a US-based LLC. HomeAbroad assists foreign nationals with LLC formation and ownership structuring to ensure the setup aligns with portfolio planning.
How long does it take to get a DSCR loan in Kentucky?
At HomeAbroad, we streamline the application process to ensure a smooth experience from loan application to closing. We guarantee that the closing will happen within 30 days.
About the author:
Steven Glick is the Director of Mortgage Sales at HomeAbroad and has over a decade of experience in the mortgage industry. As a licensed mortgage originator (NMLS# 1231769), Steven brings deep expertise in loan processing, sales operations, and non-traditional mortgages.
* Scenario-based rate shown for illustrative purposes. Reflects current pricing available to qualified borrowers with strong credit, low loan-to-value, qualifying DSCR, and selected loan terms. Actual rates vary by borrower, property, and market conditions. Not a commitment to lend. Foreign national DSCR pricing may differ from U.S. borrower programs.
Kentucky Investment Properties On Sale
Build wealth with HomeAbroad DSCR loans across Kentucky’s top markets.
Our streamlined digital process gets you from application to funding faster than traditional lenders.
1
Get Pre-Qualified
Submit a quick online application. No credit pull required for initial quote.
⏱ 5 minutes
2
Submit Documents
Upload property details, lease agreements, and basic ID verification.
⏱ Same day
3
Property Appraisal
We order an appraisal and a rent schedule to confirm DSCR qualification.
⏱ 5–7 days
4
Close & Fund
Sign closing documents and receive your funds. Remote closing available.
⏱ 27 days total
Why Investors Choose HomeAbroad
DSCR Loan Experts
We focus on DSCR investor loans. Expect clear cash flow math, rent documentation, and underwriting that reflects how rental properties are evaluated.
Foreign National Mortgage Experts
No US credit? No problem. At HomeAbroad, our expert loan officers can still qualify you for a DSCR loan. We do not rely on US income or tax returns to underwrite your loan.
AI-Powered Property Search Platform
Our investment property search helps you shortlist rentals that fit DSCR qualification. Screen for rent strength, yield, and investor criteria before you write the offer.
End-to-End Support
We keep the process moving, from LLC formation to bank accounts, insurance to property management. Everything is handled by us so you can focus on growing your portfolio.
Why Choose Us
Built for Foreign Real Estate Investors
HomeAbroad is a one-stop shop for global investors, from finding properties to securing financing, setting up your LLC, opening a US bank account, and managing your portfolio.
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Foreign National Mortgage Experts
No US credit history, income, or residency required. We've helped thousands of international real estate investors finance Kentucky real estate.
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AI–Powered Property Search
Our investment property search platform helps you discover high-yield rentals across Kentucky using smart algorithms.
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Fast Digital Process
Close in as fast as 27 days with our streamlined application, remote notarization [remote closing], and digital document signing.
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500+ Expert Agents
Work with our network of experienced real estate agents who specialize in investment properties across Kentucky.
Ready to Get Started?
Get your personalized rate quote in minutes. No credit pull, no obligation.
48
States We Lend In
27 Days
Average Close Time
500+
Partner Real Estate Agents
4.9 Star
Customer Rating
What Foreign Investors Say About Us
Real reviews from international investors who closed with HomeAbroad
★★★★★
“Quick response, reliable & trustworthy. HomeAbroad helped me find the perfect agent & purchase my investment property in Katy, TX. Would definitely recommend!”
RM
Rashmi Mayekar
Non-US Resident Investor • Property
★★★★★
“HomeAbroad was a game-changer! They helped me get mortgage financing and find an agent who understood my needs. I couldn’t be happier with their assistance.”
SP
Steve Papadakis
Newcomer on H1-B Visa
★★★★★
“Awesome experience in working with them. Very patient in understanding my needs as an investor and helped me with the correct loan product for me. I will recommend them and use them again.”
JB
John Bolla
Investor from New York, NY
★★★★★
“Jonet from HomeAbroad answered all my questions regarding specifics for work visa holders to purchase our first investment property in Tampa. Was patient and kind and also connect me with a real estate agent.”
Ok
Okissa
Purchased Investment Property in Tampa.
Pre-qualify for a DSCR Loan as an international investor
No U.S. credit history. No personal income verification. Qualify based on property’s rental income.
