What is a rental property loan?
A rental property loan is longer-term financing for an individual investment property, underwritten primarily on the rent the property produces rather than the borrower's personal income. KREC single property rental loans start at 5.875%, reach 80% LTV on purchase or rate-term refinance, and are available as 30-year fixed or interest-only options.
Answered by the Key Real Estate Capital lending team · Updated August 2026
How it works
These loans are commonly called DSCR loans, after the debt service coverage ratio — the property's rental income divided by its debt payment. A 1.0x DSCR means the rent exactly covers the payment. KREC's minimum DSCR is 0.75x, with a 720+ FICO required below 0.95x.
Because qualification centers on the asset, tax returns and W-2s are generally not part of the file. KREC finances single-family, multifamily, and condo properties from $50K to $10M, with cash-out refinances to 75% LTV and no seasoning requirement.
Key considerations
- Minimum FICO is 620; minimum property valuation is $75,000.
- Purchase and rate-term refinances reach 80% LTV; cash-out reaches 75% LTV.
- Loan terms include 30-year fixed and interest-only (10/1 ARM) structures.
- Title and property insurance plus adequate cash reserves are required.
- This program is not available in North Dakota, Nevada, or South Dakota.
Who it may be for
Investors buying or refinancing a single short-term or long-term rental.
Owners whose tax filings understate their actual cash flow.
Borrowers exiting a fix and flip or construction loan into a long-term hold.
Related KREC financing options
Single Property Rental
Rates from 5.875%, $50K to $10M, up to 80% LTV, 30-year fixed or interest-only, minimum DSCR 0.75x.
View single property rental detailsRental Portfolio
For three or more stabilized rentals financed under a single blanket loan.
View rental portfolio detailsFrequently asked questions
Common follow-up questions about rental property loans.
Ready to talk through your deal?
Share the property and your plan, and a KREC loan specialist will outline the financing structures that fit.