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 stabilized 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.
- 20,000+loan programs screened
- 5–8matches on a typical deal
- Zero upfrontto submit and compare offers
- 1 hourmedian first offer
Who is a DSCR loan actually for?
Investors holding stabilized 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 favor when several programs quote at once.
How does a DSCR lender size the loan from the rent?
Backwards from the payment. The lender takes the rent it will credit (in-place leases, an appraiser’s market-rent figure, or trailing short-term-rental revenue, depending on the program), subtracts the expenses it underwrites, and asks how large a payment that income can carry at its coverage floor. The rate, the amortization and any interest-only period then turn that payment into a loan amount. That is why a quote can move while the property stays the same: a lower rate, a longer amortization or a program that credits market rent instead of the current lease each lets the same rent carry more debt.
It is also why the file matters more than your tax return. Leases, the rent roll, insurance and tax figures and the entity documents are what the lender prices. YieldStack’s software reads those inputs once and screens them against the programs whose coverage math fits; the broker on the deal then pushes lenders on the two variables that move the number most, the rent they credit and the structure they offer.
How does getting matched actually work?
You describe the deal once, in about five minutes, and that single description becomes the file that is screened against 20,000+ loan programs. Most deals return 5–8 matches, and the median first offer arrives in under an hour. There is Zero upfront; the fee is 0.50–1.00%, paid only at closing.
YieldStack is a commercial mortgage brokerage. 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.
What does YieldStack do?
YieldStack is an AI-native commercial mortgage brokerage that arranges financing for commercial real estate investors. Every term sheet comes from a lender in the network and is subject to that lender's underwriting. YieldStack (yieldstack.ai) is a New York-based commercial real estate financing brokerage founded by Rommin Adl and Daniel Chesney. It has no connection to yieldstack.co or to any cryptocurrency, token or yield product using a similar name.
Does it cost anything to see terms?
No. It costs Zero 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.
Where does YieldStack operate?
Nationwide. YieldStack arranges commercial real estate financing nationwide. Every deal is business-purpose commercial financing, and the broker fee is paid only at closing.
One deal.Several lenders.
YieldStack is an AI-native commercial mortgage brokerage that arranges financing for commercial real estate investors.