Rental Loans

Long-Term DSCR Rental Loans for Real Estate Investors Nationwide

Watermen Capital is a national rental lender specializing in medium- and long-term loans for single-family homes and 2-4 unit properties. Our debt service coverage ratio (DSCR) loans qualify you based on the property's rental income, not your personal income, making it easier to grow a portfolio of rental properties.

Whether you're buying a stabilized, leased-up property, refinancing out of a short-term bridge loan, or re-leasing units to bring rents up to market, you need a lender that understands your business plan, offers competitive rates and leverage, and closes on time. For rental real estate investing, Watermen Capital is that lender.

Get Your Rental Loan Quote

Rental Loan Snapshot

• Property Types: Single-Family Homes, Townhomes, Condominiums and 2-4 Unit Properties
• Loan Amount: $100,000 to $2,500,000+
• Interest Rates: Starting at 5.625%
• Loan Term: 30 Years (3, 5, 7, 10 Years Available)
• Loan to Value: 80% of As Is Value for Acquisitions, and up to 80% for Refinance
• Qualification: Based on the property's rental income (DSCR), not personal income

Why Investors Choose DSCR Rental Loans

Rental properties can hedge inflation and generate long-term passive income. DSCR loans are built to help investors scale:

• No Personal Income Verification: Qualification is driven by the property's cash flow, not W-2s or tax returns.
• Built to Scale: Finance multiple rental properties without hitting the limits of conventional mortgages.
• Close in an LLC: Hold properties in your business entity rather than your personal name.
• Long-Term Stability: Lock in financing and benefit from rising rents over time.

How Investors Use Our Rental Loans

• Purchase: Buy a leased or rent-ready property with long-term financing.
• Refinance a Bridge Loan: Move a renovated, stabilized property from short-term to permanent financing.
• Cash-Out Refinance: Pull equity out of a rental to fund your next acquisition.
• Portfolio Growth: Add properties to your portfolio with a lender that understands investors.

How Our Rental Loans Work

1. Apply: Send us the property address, purchase price or estimated value, and current or projected rents.

2. Get Terms: We review the property's cash flow and issue a term sheet.

3. Underwrite: We value the property, confirm rents and finalize underwriting.

4. Close: Fund your purchase or refinance and start collecting rent.

Rental Loan FAQs

What is a DSCR loan?

A DSCR (debt service coverage ratio) loan is a rental property loan that qualifies you based on the property's income. The ratio compares the property's rent to its monthly debt payment, including principal, interest, taxes and insurance.

Do I need to show personal income?

No. DSCR loans focus on whether the property's rental income covers its expenses, not your personal income or employment.

Can I refinance out of a fix and flip or bridge loan?

Yes. Many of our borrowers renovate with a short-term bridge loan, lease up the property, then refinance into a long-term rental loan with us.

What properties qualify?

We lend on investment single-family homes, townhomes, condominiums and 2-4 unit properties. Watermen Capital is a business purpose lender and does not lend on owner-occupied or personal residences.

Where do you lend?

We make rental loans throughout the United States. Find your state in the list below for local details.