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**Last updated:** April 16, 2024

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![DSCR Loan Ohio - Cover Photo](https://cms.offermarket.us/uploads/DSCR_Loan_Ohio_Cover_Photo_b621666b69.jpg)

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You deserve the best DSCR loan Ohio has to offer. OfferMarket Capital is a leading DSCR lender and Ohio is one of our fastest growing markets. Why? Because Ohio has several rental property markets that are ideal for DSCR loans. What does that mean? Rents are high relative to home value, resulting in strong DSCR that supports high LTV. 

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![DSCR calculation](https://cms.offermarket.us/uploads/DSCR_Formula_081f5a7d48.png)

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Whether you have a time sensitive purchase or refinance, or you're new to DSCR loans and doing your homework, we would love the opportunity to be your DSCR lender.

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 Today's DSCR loan quotes and rate locks are in the **7.375%** to **8.25%** range depending on LTV, property type, and prepayment penalty. If structuring your DSCR loan terms to meet your goals and get your next purchase or refi transaction to the finish line is your priority, then [we should talk](https://www.offermarket.us/loans?ref=blog-dscr-loan-ohio). 

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Let's review the merits of DSCR loans, how you can use them to grow your Ohio rental property portfolio, and how to choose the right DSCR lender.

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## DSCR Loans Ohio

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DSCR loans are mortgages for rental properties. DSCR stands for debt service coverage ratio, a simple cash flow metric that indicates whether a rental property can sufficiently cover its mortgage payment. A DSCR of 1.0 means the property is at cash flow breakeven which a DSCR above 1.0 means the property more than covers its mortgage payment. A DSCR below 1.0 means the property does not generate enough income to cover its mortgage payment and therefore the owner must contribute additional cash on a monthly basis or raise rent.

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As interest rates rise and remain elevated, rental properties in Ohio and much of the midwest continue to be an attractive investment for investors seeking cash flow and optimal [cash on cash returns](https://www.offermarket.us/real-estate-glossary/cash-on-cash-return). All else equal, the higher the interest rate, the lower the DSCR. During periods of elevated interest rates, it's important to invest in rental properties that generate strong rents relative to as is value. This is similar to the 1% rule -- a popular concept among rental property investors that encourages screening for deals where rents will be 1% or more of the cost basis of the property (purchase price, closing costs and rehab). Properties too far below 1% may not generate enough income to cover the mortgage at your target LTV (DSCR is too low). When DSCR is too low at your target LTV, you will need to accept a lower LTV which means you'll need to have a higher down payment. Even if a higher down payment is feasible, it is certainly not ideal if you're focused on optimizing your cash on cash returns.

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## DSCR Loan Requirements

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<div style="display: grid; grid-template-columns: repeat(1, minmax(0, 1fr)); overflow: auto; white-space: nowrap;">
<table>
<thead>
<tr>
<th></th>
<th>OfferMarket</th>
<th>Other DSCR Lenders</th>
</tr>
</thead>
<tbody>
<tr>
<td>Interest Rate</td>
<td><a href="https://www.offermarket.us/loans" target="_blank" rel="noopener noreferrer">Get Instant Quote</a></td>
<td><a href="https://www.offermarket.us/blog/dscr-loan-interest-rate-index" target="_blank" rel="noopener noreferrer">Get Instant Quote</a></td>
</tr>
<tr>
<td>LTV Purchase</td>
<td>80%</td>
<td>75%</td>
</tr>
<tr>
<td>LTV Rate and Term Refi</td>
<td>80%</td>
<td>75%</td>
</tr>
<tr>
<td>LTV Cash Out Refi</td>
<td>75%</td>
<td>70%</td>
</tr>
<tr>
<td>Minimum DSCR</td>
<td>1.1</td>
<td>1.2</td>
</tr>
<tr>
<td>Minimum Credit Score</td>
<td>660</td>
<td>680</td>
</tr>
<tr>
<td>Borrower Experience</td>
<td>0+</td>
<td>1+</td>
</tr>
<tr>
<td>Appraisal</td>
<td>Direct (save $250)</td>
<td>AMC (waste $250)</td>
</tr>
<tr>
<td>Seasoning</td>
<td>None</td>
<td>6 Months</td>
</tr>
<tr>
<td>Origination Fee</td>
<td>0.5% to 1%</td>
<td>2% to 3%</td>
</tr>
<tr>
<td>Junk Fees</td>
<td>None</td>
<td>Common</td>
</tr>
<tr>
<td>Time To Close</td>
<td>15 - 25 Days</td>
<td>30 - 60 Days</td>
</tr>
<tr>
<td>Quoting</td>
<td><a href="https://www.offermarket.us/loans" target="_blank" rel="noopener noreferrer">Instant</a></td>
<td>Slow</td>
</tr>
<tr>
<td>Pre-Approval Letter</td>
<td><a href="https://www.offermarket.us/loans" target="_blank" rel="noopener noreferrer">Instant</a></td>
<td>Slow</td>
</tr>
<tr>
<td>Processing</td>
<td>Online, Fast</td>
<td>Manual, Slow</td>
</tr>
</tbody>
</table>
</div>

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## DSCR Loan Calculator

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In order to calculate the loan amount that your rental property purchase or refinance will qualify for, we recommend using a [DSCR calculator](https://www.offermarket.us/tools/dscr-calculator). It's important to understand the inputs that lenders use to calculate DSCR, this way you can screen investment opportunities and set proper expectations regarding loan-to-value, cash to close and cash on cash returns.

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### Purchase Price or As Is Value

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For purchase transactions, the DSCR calculation uses the lower of the purchase price or As Is value from the appraisal report. For refis, the As Is value from the appraisal report is used. The higher the As Is value, the greater the chance that DSCR will not support maximum LTV. For example, let's say you used the BRRR method on a rental property in Shaker Heights, OH. After your rehab you get the property leased for $2,000 and then the property appraises for $290,000 with a market rent of $1,900. Ultimately, with interest rates elevated, the rental income is only enough to cover closer to 65% LTV than the 75% LTV maximum for cash out refi.

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### Rents

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Most DSCR lenders take the lower of actual in place rent and market rent opinion in your appraisal report. This is why it is critically important keep your lease agreements as close to market rent as possible, and to work with a lender that orders appraisals with appraisers who are experts in rental properties in the local market. If the property is vacant, the market rent opinion from the appraisal will serve as the input for the DSCR calculation.

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### Property Tax Rate

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The higher the property tax rate, as verified by the most recent tax bill for the subject property, the lower the DSCR. Ohio property taxes are higher than the national average and, depending on the city, can be a substantial drag on DSCR.

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### Property Management

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While property management is a very real expense that eats into your Net Operating Income, the numerator of the DSCR formula, many lenders do not include property management in their DSCR calculation. If you are not sure if you will use a property management company, to ensure you get the highest possible loan amount, it's best to self manage initially and make that final decision after your DSCR loan is originated.

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### Utilities

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If your tenants are not paying utilities, your DSCR calculation will include utilities as an expense that reduces Net Operating Income and therefore DSCR. We recommend always having your tenants pay all utilities.

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### Maintenance

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Some DSCR lenders include a specific maintenance amount in your DSCR calculation. This may be a $500 or $1,000 annual expense that will reduce your DSCR slightly.

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## DSCR Loan Interest Rates

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[DSCR loan interest rates](https://www.offermarket.us/blog/dscr-loan-interest-rate-index) are historically highly competitive with conventional loans for investment properties, and bank loans. During times of economic uncertainty, the DSCR market can become volatile as credit investors including life insurance companies, pension funds, mortgage REITs pause purchases or demand higher interest rates to compensate for an increase in perceived risk. During these times, the firms that aggregate DSCR loans for securitization may demand a higher yield. Ultimately 

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## DSCR Loan Down Payment

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For purchases, the lowest down payment available among leading DSCR loan programs is 20% (80% LTV). Many rental property investors look for 85% LTV and we urge you to be cautious if a lender tells you they can provide 85% LTV. 

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DSCR lenders do a liquidity verification and request up to three months of bank statements. You can use brokerage accounts and retirements accounts as well to confirm you have enough funds to cover your down payment, closing costs and have a healthy buffer in case your tenant is vacant or an eviction is required.

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## DSCR Loan Credit Score

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DSCR loans are highly sensitive to borrower credit score. The minimum credit score requirement to qualify for a DSCR loan is 660. The lower the credit score, the lower your LTV and higher your interest rate. Most lenders require a credit score of 720 and higher in order to qualify for the highest LTV that your DSCR supports.

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Most DSCR loan program guidelines require a [tri merge report](https://www.offermarket.us/blog/what-is-a-tri-merge-credit-report) which is a hard pull for all three credit bureaus (Experien, Transunion and Equifax). The highest and lowest scores are ignored and the middle score use used.

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## DSCR Loan Prepayment Penalty

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DSCR loans in Ohio, just like the rest of the U.S., typically have a prepayment penalty. The 3 year, 3-2-1, and the 5 year, 5-4-3-2-1, are the most common options. Learn more about the concept of a [prepayment penalty](https://www.offermarket.us/real-estate-glossary/prepayment-penalty).

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## DSCR Minimum Loan Amount

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Most DSCR lenders have a minimum loan amount of $75,000. Our minimum loan amount is currently $65,000 for a single property loan and $50,000 for a portfolio loan of 2 or more properties. 

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## DSCR Portfolio Loan Ohio

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If you are buying or refinancing 2 or more rental properties in Ohio, you can use a DSCR portfolio loan. During periods of market volatility, DSCR portfolio loans may carry a slightly higher interest rate and a slightly lower LTV. If your total portfolio loan amount is high enough, you may be able to qualify for a lower minimum loan and As Is value for individual properties within the portfolio.

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## Best Ohio Markets For DSCR Loans

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Due to DSCR loan program guidelines, because the majority of DSCR loans are pooled into securitizations, your rental property cannot be considered "rural". While the definition of rural varies by lender, the appraisal report cannot be marked as "rural" -- it would need to be marked "suburban" instead. Even if the property is marked as "suburban" on the appraisal report, the lender may deem the property to be rural if it shows as rural on the [CFPB Rural and Underserved Areas Tool](https://www.consumerfinance.gov/rural-or-underserved-tool/), if the local population is below 20,000, or if a simple Google Maps view shows the property is in an area with limited infrastructure -- schools, hospitals, places of worship, grocery stores -- and far from other population centers (in other words, the middle of nowhere).

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These are the best rental markets in Ohio if you want to use a DSCR loan:

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<div style="display: grid; grid-template-columns: repeat(1, minmax(0, 1fr)); overflow: auto; white-space: nowrap;">
<table>
<thead>
  <tr>
    <th>City</th>
    <th>Population</th>
    <th>County</th>
  </tr>
</thead>
<tbody>
  <tr>
    <td>Columbus</td>
    <td>940,000</td>
    <td>Franklin County</td>
  </tr>
  <tr>
    <td>Cleveland</td>
    <td>365,000</td>
    <td>Cuyahoga County</td>
  </tr>
  <tr>
    <td>Cincinnati</td>
    <td>313,000</td>
    <td>Hamilton County</td>
  </tr>
  <tr>
    <td>Toledo</td>
    <td>266,000</td>
    <td>Lucas County</td>
  </tr>
  <tr>
    <td>Akron</td>
    <td>188,000</td>
    <td>Summit County</td>
  </tr>
  <tr>
    <td>Dayton</td>
    <td>136,000</td>
    <td>Montgomery County</td>
  </tr>
  <tr>
    <td>Parma</td>
    <td>81,000</td>
    <td>Cuyahoga County</td>
  </tr>
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    <td>Canton</td>
    <td>70,000</td>
    <td>Stark County</td>
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    <td>Lorain</td>
    <td>65,000</td>
    <td>Lorain County</td>
  </tr>
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    <td>Hamilton</td>
    <td>64,000</td>
    <td>Butler County</td>
  </tr>
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    <td>Kettering</td>
    <td>58,000</td>
    <td>Montgomery County</td>
  </tr>
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    <td>Springfield</td>
    <td>58,000</td>
    <td>Clark County</td>
  </tr>
  <tr>
    <td>Youngstown</td>
    <td>58,000</td>
    <td>Mahoning County</td>
  </tr>
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    <td>Elyria</td>
    <td>52,000</td>
    <td>Lorain County</td>
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    <td>Middletown</td>
    <td>52,000</td>
    <td>Butler County, Warren County</td>
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    <td>Dublin</td>
    <td>52,000</td>
    <td>Franklin County, Delaware County, Union County</td>
  </tr>
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    <td>Cuyahoga Falls</td>
    <td>51,500</td>
    <td>Summit County</td>
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    <td>Newark</td>
    <td>50,500</td>
    <td>Licking County</td>
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    <td>Lakewood</td>
    <td>50,500</td>
    <td>Cuyahoga County</td>
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    <td>Euclid</td>
    <td>50,000</td>
    <td>Cuyahoga County</td>
  </tr>
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    <td>Mentor</td>
    <td>47,500</td>
    <td>Lake County</td>
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    <td>Mansfield</td>
    <td>47,500</td>
    <td>Richland County</td>
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    <td>Strongsville</td>
    <td>47,000</td>
    <td>Cuyahoga County</td>
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    <td>Beavercreek</td>
    <td>47,000</td>
    <td>Greene County</td>
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    <td>Fairfield</td>
    <td>45,500</td>
    <td>Butler County</td>
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    <td>Cleveland Heights</td>
    <td>45,000</td>
    <td>Cuyahoga County</td>
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    <td>Huber Heights</td>
    <td>45,000</td>
    <td>Montgomery County, Miami County</td>
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    <td>Delaware</td>
    <td>43,000</td>
    <td>Delaware County</td>
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    <td>Grove City</td>
    <td>43,000</td>
    <td>Franklin County</td>
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    <td>Reynoldsburg</td>
    <td>42,500</td>
    <td>Fairfield County, Franklin County, Licking County</td>
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    <td>Lancaster</td>
    <td>41,000</td>
    <td>Fairfield County</td>
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    <td>Westerville</td>
    <td>40,000</td>
    <td>Franklin County, Delaware County</td>
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    <td>Findlay</td>
    <td>40,000</td>
    <td>Hancock County</td>
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    <td>Hilliard</td>
    <td>40,000</td>
    <td>Franklin County</td>
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    <td>Warren</td>
    <td>38,500</td>
    <td>Trumbull County</td>
  </tr>
</tbody>
</table>
</div>

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## DSCR Lenders Ohio

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You have many choices when it comes to selecting a DSCR lender in Ohio. At OfferMarket, our mission is to help you build wealth through real estate. We accomplish this mission by providing you with the best possible terms, every single quote, every single loan, every single time.

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📉 Lower interest rates<br/>
💸 Lower origination fee<br/>
💰 Higher LTV<br/>
🛎️ Better service<br/>
👨‍💻 Better technology<br/>
⚡ Faster time to close<br/>
📅 No seasoning<br/>

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## How to apply for a DSCR loan

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Applying for a DSCR loan has never been easier. **[Submit our DSCR loan application](https://www.offermarket.us/loans)** for an instant quote and download your pre approval letter in minutes. We do not pull your credit when you submit your application, that is only done once you e-sign our credit release authorization, a later step in our processing once you confirm your intent to proceed with OfferMarket as your DSCR lender.

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See how much you qualify for, **[get your instant DSCR loan quote](https://www.offermarket.us/loans)** today!




Looking for the best DSCR Loan Ohio has to offer? Learn about the most important financing option for rental property investors. Get the lowest rate, highest LTV and lowest origination fee.

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DSCR Loan Ohio

Learn how a pledge of shares agreement is used in private lending.

Pledge of shares private lender real estate

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Pledge of Shares Agreement

Pledge of Shares

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Our mission is to transform the way real estate is discovered, transacted and managed. In order to accomplish our mission, we must be vigilant about listing authenticity to make sure that buyers and sellers have an excellent experience using our real estate marketplace. 

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Accordingly, we take trust and safety very seriously and feel it is important to share with you our process for listing verification.

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## Listing verification process

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## ✅ Step 1: Manual Review

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Our Trust and Safety team manually reviews every listing that is published on OfferMarket. We check state and local tax assessor databases and cross reference listing websites.

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## ✅ Step 2: Request For Proof Of Ownership

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If we are unable to verify home ownership or authorized representation (i.e. property manager), a member of our team will reach out to the phone number associated with the listing to request additional information to confirm the listing.

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1. Valid government issued identification (i.e. drivers license, passport)
2. Copy of the deed
3. If representing the owner, we will request the owner's contact information and follow up to receive their consent to list

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## Questions or concerns? Please call or text 443-492-9941.

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We take listing verification seriously to ensure trust, safety and authenticity of all listings on our marketplace. Learn more about our listing verification process.

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How does OfferMarket handle listing verification?

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket also provides DSCR rental loans, bridge loans, hard money, fix & flip, rehab, ground up construction loans.

Rental Loans

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The Contract Of Sale is the agreement between the Seller and Buyer wherein the terms of the sale of real property are established. Also commonly referred to as a [Purchase And Sale Agreement](https://www.offermarket.us/real-estate-glossary/purchase-and-sale-agreement).

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The Contract Of Sale is the agreement between the Seller and Buyer wherein real property is being sold. Also commonly referred to as a Purchase And Sale Agreement.

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What is a Contract Of Sale (COS) in real estate?

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* Takes 2 minutes, no credit pull