Loan structure
DSCR loans, matched to your deal
A DSCR loan qualifies on the property’s income instead of yours: the lender tests whether rent covers the debt payment, and your tax returns, W-2s and employment history stay out of the file. It is the default structure for stabilised rental property held by investors — including in an LLC — and the terms vary more between lenders than most borrowers expect, which is exactly why the same file should be quoted by several at once.
- 5,000+loan programs screened
- 5–8matches on a typical deal
- $0 upfrontto submit and compare offers
- 0.50–1.00%broker fee, paid only at closing
Who is a DSCR loan actually for?
Investors holding stabilised rental property — long-term or short-term rentals, single assets or small portfolios — whose income on paper understates their real position, or who simply prefer not to document personal income. The property’s rent does the qualifying, and entity ownership is normal rather than an exception. If the property does not yet produce rent, a bridge or renovation structure usually fits first, with the DSCR loan as the exit.
What do DSCR lenders disagree about?
Almost everything that matters: the coverage floor they will accept, how they count short-term-rental income, leverage on cash-out versus purchase, prepayment structure, and how they treat newer investors. Two lenders can look at the same file and return meaningfully different terms because their program rules differ, not because either misread the deal. That spread is the argument for distribution — the terms only converge toward your favour when several programs quote at once.
How does getting matched actually work?
You describe the deal once — about five minutes — and it is screened against 5,000+ loan programs. Most deals return 5–8 matches, and the median first offer arrives in under an hour. There is $0 upfront; the fee is 0.50–1.00%, paid only at closing.
YieldStack is a commercial mortgage brokerage, not a lender. The rate, the leverage and the credit decision belong to the lenders competing for your deal; our job is making sure the right ones see it at the same time, so the terms you compare are real competition rather than one desk’s appetite.
What do lenders actually look at?
Every program weighs these in its own way — which is the argument for several quoting at once.
- Whether the property’s rent covers the proposed payment, on the lender’s own coverage math
- How the rent is evidenced — leases in place, market rent, or short-term-rental history
- Leverage requested, and whether the deal is a purchase or a cash-out
- The entity, the guarantee structure, and the exit
Frequently Asked Questions
Do DSCR loans require tax returns?
No — the structure exists precisely so the property’s income qualifies the loan. Lenders verify the rent, the asset and the entity rather than your personal income documentation.
Can I close a DSCR loan in an LLC?
Yes — entity vesting is standard in this market, and many investors hold every rental in its own LLC. The guarantee arrangement is part of what gets quoted.
What DSCR ratio do I need?
It depends on the lender — coverage floors are program rules and they genuinely differ. That variation is why one submission going to many programs beats guessing at any single lender’s threshold.
Is YieldStack a lender?
No. YieldStack is a commercial mortgage brokerage, not a lender. Every term sheet comes from a lender in the network and is subject to that lender's underwriting.
Does it cost anything to see terms?
No. It costs $0 upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing.
Is financing guaranteed?
No. Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
Next step
One deal.Several lenders.
YieldStack is a commercial mortgage brokerage, not a lender.