DSCR Loan Ohio
- LTV: 80%
- Term: 30 Year
- Rate: 7.25%
- Points: 2.0%
What are DSCR Loans used for in Ohio?
1. Clevland
2. Cincinnatti
3. Columbus
What are dscr loans used for in Ohio?
DSCR loans are a powerful financing tool for real estate investors in Ohio, allowing them to qualify for loans based on the rental income potential of the property rather than personal income.
These loans use the Debt Service Coverage Ratio (DSCR)—a calculation comparing rental income to property expenses to determine eligibility and loan amounts.
In Ohio, where rental demand is strong, DSCR loans are commonly used to finance long-term rental properties, short-term vacation rentals, and multi-unit buildings.
For those following the BRRRR investing strategy, DSCR loans are ideal for refinancing after stabilizing a property. This strategy allows investors to build a portfolio of rental properties while preserving capital for future projects.
If you're considering investing in Airbnb rentals, DSCR loans can also help finance short-term rentals in Florida’s high-demand vacation markets. Learn more in our guide: Financing Airbnb Rentals with DSCR Loans.
To understand how to calculate DSCR and determine your eligibility, visit the How to Calculate DSCR section of this page.
.png)
DSCR loans are a powerful financing tool for real estate investors in Ohio, allowing them to qualify for loans based on the rental income potential of the property rather than personal income.
These loans use the Debt Service Coverage Ratio (DSCR)—a calculation comparing rental income to property expenses to determine eligibility and loan amounts.
In Ohio, where rental demand is strong, DSCR loans are commonly used to finance long-term rental properties, short-term vacation rentals, and multi-unit buildings.
For those following the BRRRR investing strategy, DSCR loans are ideal for refinancing after stabilizing a property. This strategy allows investors to build a portfolio of rental properties while preserving capital for future projects.
If you're considering investing in Airbnb rentals, DSCR loans can also help finance short-term rentals in Ohio's high-demand business markets. Learn more in our guide: Financing Airbnb Rentals with DSCR Loans.
To understand how to calculate DSCR and determine your eligibility, visit the How to Calculate DSCR section of this page.
Ohio DSCR Loan Products
Low Rates, from 1.0% Origination for long term & short term rentals in Ohio.
.png)
Long Term Rental
DCSR Loans Ohio
Rates from 6.75%
LTV Up To 80%
From 1.0% Origination Points
Minimum DSCR: 1.0
Closing Time 14 Days
Appraisal Required
Minimum Credit Score: 660
Property Condition C4 Required
Purchase, Refinance, and Cash Out Available
.png)
Short Term Rental
DCSR Loans Ohio
Rates from 6.95%
LTV Up To 80%
1-2% Origination Points
Minimum DSCR: 1.0
Closing Time 21 Days
Appraisal Required & AirDNA Check
Minimum Credit Score: 680
Property Condition C4 Required
Purchase, Refinance, Cash Out Available
.png)
How To Determine DSCR For Ohio Rental Properties?
The Debt Service Coverage Ratio (DSCR) is calculated by dividing the monthly rent of the property by the monthly loan payment (principal + Interest), taxes, insurance and association fees (PITIA).
DSCR = Rent/PITIA
The basis of a DSCR loan in Ohio, is that the rent you collect from tenants leasing the property should be greater than the cost to own and operate the property.
Investment purpose rental properties with a DSCR greater than 1.0 are called “cash flowing”. You can calculate the DSCR of your rental property with our DSCR Loan Calculator.
(DSCR Evaluation)
Property Value: $474,000
Loan: $379,200
Interest Rate: 7.25%
Ammortization: 30 YR (FRM)
Monthly Rent: $3,995
P&I Payment: $2,586.81
Monthly Taxes: $400.00
Monthly Insurance: $180
Monthly HOA: $0
DSCR 1.26
Ohio DScr Loan process
Ridge Street closes Ohio DSCR loans in 14-21 days.
Apply Or Get Pre-Approved Online
.png)
.png)
Receive your term sheet
.png)
.png)
.png)
Submit Docs
.png)
Appraisal or BPO
.png)
Closing
.png)
When To Use a DSCR Loan?
DSCR loans are used by investors to "hold" real estate. These loans are long term and amortizing. This allows investors to continuously gain equity in their property while generating monthly cashflow.
Investors either use DSCR loans when purchasing a property or when refinancing it. The BRRRR Investing Strategy is popular among investors in which the DSCR loan is used to "cash out" the property.
Benefits Of DSCR LoanS Compared To Other Loan Types
Other benefits of DSCR loans include:
- No income verification
- Can be used for long term and short term rentals (Financing Airbnb's for example)
- Cost Effective
Best Rental Markets In Ohio For DSCR Loans
Ohio presents a diverse and robust rental property market for real estate investors, driven by its affordable housing, steady population centers, and strong demand for long-term rentals. Key cities like Columbus, Cleveland, and Cincinnati offer unique opportunities for both cash flow and appreciation. By utilizing DSCR loans, investors can unlock financing based on rental income, making it easier to scale their portfolios. In this guide, we explore Ohio’s top rental markets and the factors that make them ideal for DSCR-funded investments. Whether you’re focusing on urban hubs or suburban growth, Ohio offers a range of opportunities to meet your investment goals.
Clevland
Cleveland is an ideal market for investors utilizing the fix-and-refi strategy, thanks to its affordable property prices and high rental demand. The city’s revitalization efforts, particularly in neighborhoods like Ohio City and Tremont, create opportunities to buy undervalued properties, make strategic renovations, and significantly increase both property value and rental income. Cleveland’s strong job market in healthcare, education, and manufacturing attracts a diverse tenant base, ensuring steady demand. By leveraging DSCR loans for refinancing, investors can recoup capital to scale their portfolio in a market primed for cash flow and long-term growth.
.png)
CincinNatti
Cincinnati’s rental market offers attractive opportunities for investors, combining affordable housing with strong rental demand. The city’s diverse economy, anchored by major employers in finance, healthcare, and manufacturing, draws a steady influx of professionals and families seeking quality rental homes. Neighborhoods like Over-the-Rhine and Hyde Park are seeing revitalization, creating opportunities for value-add investments. With DSCR loans, investors can secure cash-flowing properties in a market known for its stability and growth potential. Cincinnati’s balance of affordability and high rental demand makes it a prime choice for building a profitable portfolio.
Columbus
Columbus, Ohio, stands out as a prime rental market for real estate investors, thanks to its rapidly growing population, diverse economy, and strong demand for rental housing. Home to a thriving tech and education sector, as well as The Ohio State University, Columbus attracts young professionals, students, and families seeking quality rental options. By using DSCR loans, investors can leverage the city’s steady rental income to secure financing and expand their portfolios. In this guide, we dive into the Columbus rental market, highlighting why it’s an excellent choice for DSCR-funded investments and how its vibrant economy supports consistent returns.
Akron
Akron offers a unique opportunity for rental property investors, with its affordable home prices and steady tenant demand driven by the city’s healthcare, education, and manufacturing industries. Known as the “Rubber Capital of the World,” Akron’s rich industrial history is complemented by its ongoing revitalization efforts, creating opportunities for value-add investments. The city’s affordable cost of living attracts long-term renters, while strategic neighborhoods provide strong cash flow potential. With DSCR loans, investors can capitalize on Akron’s rental market to build a stable, high-yield portfolio in this affordable Midwest city.
Ohio DSCR Loan FAQ’s
How can I Improve the DSCR of my property?
- Increase Your Down Payment. By Increasing your down payment your loan amount will go down and your DSCR will increase. If you’re struggling to improve your DSCR past 1.0, increasing your down payment is an option you may have to consider.
- Ask Your Lender About A Rate Buy Down. Some lenders, including Ridge Street, allow you to pay an additional fee at closing in exchange for a lower rate. In some cases, a rate buydown will allow you lower your DSCR without increasing your overall cash required to close.
- Push For Less Expensive Insurance. Ask your insurance broker if there is anything they can do to lower your policy fee. A lower insurance policy fee will increase your DSCR.
Could I use a DSCR loan if I have to renovate a property?
You can start by getting a short term fix and flip loan to renovate the property and then refinance the property with a DSCR loan. The strategy of buy, rehab, rent, refinance, and repeating is called The BRRRR Strategy.
Can I use a DSCR loan on a Vacation property?
Absolutely! This is one of the main use cases for a DSCR loan.
What loan amounts can I get for a DSCR loan?
Between $50K and $2M. As long as a the DSCR is greater than 1.0, Ridge Street will lend on it.
Are DSCR loans only for investment properties?
Yes. If you are buying a piece of real estate which you intend to live in, then you would not qualify for a DSCR loan.
For refinances and cash outs, does the property have to be rented?
The short answer is no. We understand that investors who fix and refinance properties intend to refinance as soon as possible after renovating a property.
This said, providing a DSCR loan on a rental property that is not rented is higher risk. We'll want to see that the market you are in is very "rentable" at the market rent for your property. We will not provide a DSCR loan on a rental property that has been listed for rent for 3 months with no bites, for example.
.png)
How to Get A DSCR Loan In Florida with Ridge Street?
Ridge Street is the #1 DSCR Rental Property Lender in Florida. We pride ourselves on fast closings and fairly priced loans. Get approved for your next project today.
.png)
.png)
.webp)
