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DSCR loans for Atlanta rental property
Long-term financing approved on what the property earns. Single-family rentals, duplexes to fourplexes, townhomes and build-to-rent homes, with no tax returns or employment check.
DSCR loan terms
| To buy | up to 85% LTV |
| Cash-out refinance | up to 80% LTV |
| Credit scores from | 600 |
| Fixed terms | 5 to 30 years |
| Prepayment choices | 3-year, 5-year or none |
| Typical closing | about 30 days |
At a 600 score the limit is 70% loan-to-value. Stronger credit qualifies for up to 85% on a purchase.
DSCR in plain terms
DSCR is short for debt service coverage ratio. It answers one question: does the rent pay the mortgage? If it does, the loan can be approved without looking at your personal income.
DSCR = monthly rent ÷ monthly payment. The payment counts principal, interest, property taxes, insurance and any homeowners association fee.
| Rent | Payment | DSCR | Reading |
|---|---|---|---|
| $2,860 | $2,200 | 1.30 | Income is 30% above the payment |
| $2,200 | $2,200 | 1.00 | Income equals the payment |
| $1,980 | $2,200 | 0.90 | Income is short; expect less leverage or a higher rate |
We prefer a ratio of 1.0 or higher. A strong borrower can qualify under 1.0 with lower leverage, and there is a no-DSCR option up to 75% loan-to-value at a higher rate.
Why taxes and insurance matter in Georgia
- Property tax. Georgia taxes real estate on 40% of its fair market value, and combined millage rates in Fulton and DeKalb counties often work out to about 1.3% to 1.8% of market value. Investment property gets no homestead exemption and no cap on yearly increases. The county reassesses each year, and a recent sale price usually becomes the new value. Plan on taxes at full market value, not the seller’s bill.
- Insurance. Hail, wind and falling trees drive insurance costs across metro Atlanta, and older roofs and wiring can limit coverage. Homes along creeks such as Peachtree, Proctor and Nancy creeks can sit in FEMA flood zones. Get insurance quotes before you make an offer.
- HOA fees. Many newer subdivisions in Gwinnett, Henry and Cobb counties have association dues, and some limit leasing. Dues count in the payment.
Use the tax bill at full market value, not the seller’s capped or homestead figure, and get a real insurance quote before you make an offer. Those two numbers decide whether many Atlanta rentals clear 1.0.
Which rent counts
- Long-term rentals. Year-long leases are the core of the market, with demand from one of the country’s fastest-growing metro areas. We use the lease or the market rent from the appraisal.
- Duplexes to fourplexes. Every unit’s rent counts.
- Short-term rentals. In the City of Atlanta, renting for less than 30 days needs a short-term rental license, and a license is available only for the owner’s primary residence and one additional unit, so an out-of-town investor generally cannot license a house in the city. Operators must also collect hotel-motel tax. Suburban cities and counties set their own permit rules, and many homeowners associations ban short stays. We underwrite on long-term rent unless the address can legally host short stays.
- Rental rules. Georgia law bars cities and counties from adopting rent control, so rents follow the market. Since 2024, the state’s Safe at Home Act requires rentals to be fit for living, caps security deposits at two months’ rent and requires three business days’ written notice before an eviction for nonpayment.
Loan options
- Fixed terms from 5 to 30 years. The 10/1 interest-only and the 30-year fully amortized loan are chosen most often.
- Qualifying on the interest-only payment is available.
- A 3-year or 5-year prepayment penalty. The 5-year option usually prices about 0.25 to 0.5% lower. No penalty is available at a higher rate.
- One property or a whole portfolio.
Refinancing after a renovation or a build
If you renovate or build a property and decide to keep it, a DSCR loan replaces the short-term fix and flip or construction loan with long-term debt. A cash-out refinance at up to 80% loan-to-value can hand back much of the cash you put in.
Documents we ask for
- Loan application
- Signed purchase contract, or your original settlement statement for a refinance
- The lease, or market rent from the appraisal
- Two months of bank statements
- Insurance and title contacts, and someone to let the appraiser in
- For a property in an association: the HOA dues and any special assessments
- For an LLC: articles of organization, EIN letter and operating agreement
The full list is in our hard money loan document checklist.
DSCR loans: common questions
We prefer 1.0 or higher, which means the rent covers the full payment. Strong borrowers can qualify below 1.0 with lower leverage, and a no-DSCR program is available up to 75% loan-to-value at a higher rate.
Usually we underwrite on long-term rent, because the City of Atlanta licenses short-term rentals only for an owner’s primary residence and one more unit, and many suburbs and HOAs restrict them. Ask us about a specific address.
Most often it is property tax or insurance. A new owner is usually taxed on the purchase price without a homestead exemption, and older roofs and wiring raise premiums.
Yes, up to 80% loan-to-value once the property is finished and rented.
The minimum is 600, at up to 70% loan-to-value. Higher scores qualify for up to 85% of the purchase price.
No. A DSCR loan is approved on the property’s rental income. There is no employment, tax return or debt-to-income review.
No. These are business-purpose loans and are not reported on your personal credit like a conventional mortgage. There is no cap on how many properties we will finance for you.
Buying or refinancing an Atlanta rental?
Send the address, the price and what you plan to do with the property. We will reply with the leverage and pricing that fit your deal.