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Table of contents

DSCR Loan Kentucky

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DSCR Loan Kentucky Example Deal

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DSCR Loan Kentucky calculation

DSCR Loan Requirements

DSCR Loan Kentucky Common Questions

What areas do you do serve in Kentucky?


We work with all properties in Kentucky that have a non-rural designation. Use this rural designation search tool to see if your property is considered rural.


What areas of Kentucky look good right now?


Kentucky boasts a diversified economy with a strong manufacturing presence alongside growth in healthcare, logistics, and bourbon production. The population is expected to experience slow but steady growth, with some areas attracting retirees and young professionals seeking a lower cost of living and a strong sense of community.


  1. Louisville Metro:


The Louisville Metro area is experiencing slow population growth, with an estimated 10,000 new residents expected in the next 5 years. The region boasts a diverse economy with major employers in healthcare (Norton Healthcare), manufacturing (Ford), and logistics (UPS Worldport).


  • 40202 (Downtown Louisville): Revitalized downtown area with a growing entertainment district and job opportunities. Major employers include Norton Healthcare, Humana, and UPS. Rents could potentially increase by 2-4% annually as demand rises from young professionals. Easy access to I-64 and I-65.
  • 40207 (St. Matthews): Established neighborhood with excellent schools and proximity to major employers like Norton Healthcare. Rents could potentially increase by 1-3% annually due to limited availability and steady demand from families.
  • 40241 (East Louisville): Upscale area with large historic homes and a quiet atmosphere. Major employers in the area include UPS and Ford. Rents could potentially remain stable or increase slightly by 1-2% annually.

  1. Lexington Area (Fayette County):

The Lexington Area, including Fayette County, is experiencing moderate population growth, with an estimated 8,000 new residents expected in the next 5 years. The University of Kentucky is a major employer, and the city has a growing healthcare sector (UK HealthCare). The surrounding area is known for its horse farms and tourism.


  • 40506 (University of Kentucky Area): High demand for rentals due to proximity to the University of Kentucky. Rents could potentially remain stable or increase slightly by 1-2% annually due to student housing fluctuations.
  • 40503 (Devine): Established neighborhood with good schools and a mix of families and young professionals. Major employers nearby include UK Healthcare and Lexmark International. Rents could potentially increase by 2-4% annually due to steady demand.
  • 40515 (Lexington): Suburban area with a growing population and family-friendly atmosphere. Rents could potentially increase by 2-4% annually due to steady demand from families.

  1. Northern Kentucky (Cincinnati Metro Area):


Northern Kentucky, part of the Cincinnati Metro Area, is experiencing moderate population growth, with an estimated 5,000 new residents expected in the next 5 years, driven by proximity to Cincinnati, Ohio. The region boasts a diverse economy with major employers in healthcare (St. Elizabeth Healthcare), manufacturing (Toyota), and logistics (Amazon).


  • 41011 (Covington): Revitalized downtown area with a growing entertainment district and views of Cincinnati. Major employers include St. Elizabeth Healthcare and manufacturing companies. Rents could potentially increase by 2-4% annually as demand rises from young professionals. Easy access to I-75 and I-71.
  • 41017 (Fort Thomas): Established neighborhood with excellent schools and proximity to major employers in Cincinnati. Rents could potentially increase by 1-3% annually due to limited availability and steady demand from families.
  • 41076 (Florence): Suburban area with a growing population and family-friendly atmosphere. Major employers include Toyota and Amazon fulfillment centers. Rents could potentially increase by 2-4% annually due to steady demand.

How Do DSCR Loans Work in Kentucky?


The overall process of getting a DSCR Loan in Kentucky is approximately as follows. You submit an application for a loan (you can get started on your loan with an instant quote) answering 14 questions about your property. An instant quote will tell you if you qualify for the loan in under 1 minute of your time. It will also show you the a preliminary interest rate and loan amount. Once you select desired LTV (which can be changed later), your quote will be converted to a Loan File for processing purposes.


You will have to submit documents as part of your Loan File for underwriting. Documents we may ask for will include personal and property documents such as purchase contracts, current leases, borrowing entity documents, deeds, title work (we will engage a title company or an attorney on your behalf to draw up these documents), background and credit reports (that we will order), bank statements for liquidity verification as well as other documents that may be applicable to your specific deal. Full list of requirements can be found here in DSCR loan requirements.


We will also handle all the aspects of scheduling and appraisal for you. Please note that we have a promotion, where new clients receive a 100% refund at closing for their appraisal and existing clients forever get a 50% refund for their appraisal at closing as our way to say thank you for allowing us to partner with you! Once all the loan documents are submitted, the Loan File goes through underwriting, at which point the underwriting committee may ask for additional documents depending on their discretion. Once the committee receives all the documents and approves the file, closing can be scheduled.


The closing, will be handled by the title company or at the office of closing attorney. Once closing is complete, funds will be wired. Post closing, the loan will be entered into servicing and you will receive information regarding setting up auto-pay or other options that may be available for your loan depending on the specific servicer's capabilities.


Can you lend on properties worth less then $100k?


In short, no, appraisal as is value must come in at above 100k. We can only lend on properties that are less then $100k if they are in a portfolio with other properties and the portfolio's total as-is value on the appraisal is above $250k. In order to qualify for our loans, the property must appraise for at least $100k as-is at the time of the appraisal, however, total loan amount may be less then 100k, minimum loan amount is $55k.


Do you do cash out refi no seasoning for Kentucky loans?


We do offer refinance options with no seasoning requirements. Here is the general criteria for cash out refi no seasoning for Kentucky loans. Easiest way to see if you qualify is to answer a few question in our online quoter. It will compare all of our lending criteria against your answers and give you a response in under 1 minute without you needing to read anything. If in case you want to do it the hard way, please read on to see some of the guidelines below with a full list of our requirements here.


Minimum loan amount has to be above $55,000. Minimum As-Is value on the appraisal has to be $100,000. Between 1-4 units. Must have an active lease with proof of security deposit collected. Property condition must be C4 or better. Minimum credit score of 680. Credit score between 680 to 699, gets maximum LTV of 70%, credit score of 700+ gets maximum LTV of 75%. Max LTC, 100% (less than 90 days seasoning), 140% (90 to 179 days seasoning). Minimum verified rehab, 20% of purchase price (less than 90 days seasoning), n/a (90+ days seasoning). Minimum verified rehab, is an improvement that has been done to the unit to verify increase in as-is value in such as short period of time (less then 90 days) to justify the no seasoning period. Origination fee of 1 to 2 points depending on the loan amount to keep the lights on. Lender fee, $1,995 (doesn't go to OfferMarket), includes multiple fees to several different 3rd party verification services, necessary to certify the information in the Loan File for closing. Appraisal at AMC market price, we also have a promotion that new clients get 100% of their appraisal refunded at closing and 50% refund for existing clients. Time to close, 20-25 days.


I know this is a lot of information. You don't have to lift a finger to calculate any of this to see if you qualify, all you have to do is answer 14 simple questions about your deal and we will tell you if we are a good fit for you and what kind of deal we can offer you. To get an answer on your specific situation, please answer 14 simple questions here in our online quoter for Kentucky DSCR loans.


Do I need to have my property insured to qualify for funding?


Yes, but if you don't already have insurance, we can roll it into the lending process with no extra charge or effort to you. Our insurance team works with thousands of carriers and is intimately familiar with the insurance requirements of your loan. They will be able to ether talk to the agent of your choice or find the most competitive offer without our network of carriers to complement your loan with no extra effort or expense to you. If you already have insurance, you should get an instant quote to see if we can offer you a more competitive rate and save you thousands of dollars over the lifetime of your policy. Get you instant insurance quote here.


What are the best DSCR Lender Kentucky?


There are many DSCR lenders in Kentucky and you have many options to get your loan funded. As fellow rental property investors, we built OfferMarket to be a low cost DSCR lender. We believe you should never have to wonder if you're getting the best possible terms from your lender. You should never need to waste time negotiating. That's why we provide you with our best possible term sheet every single time -- you get our lowest rate and lowest fees.


Your first loan with OfferMarket is the start of a long term relationship. It's our opportunity to provide you with remarkable value and prove that we deserve to be your partner on your real estate investing journey. We feel a sense of obligation to prove we deserve your business on each and every loan.


Are you able to lend on rural properties?


We can't lend on rural properties. How can I find out, if my property is rural? Here are more detail on how to verify if your property is rural in our Rural Designation Search Tools. The 2 search tools are hosted by USDA Rural Development Property Eligibility and CFPB Rural and Underserved Areas Checker. Both of the tools must flag the property as none rural for it to be eligible for our funding. Use these instruction to find out if your property is considered rural

What are the requirements for a DSCR loan in Kentucky?


If you scroll up on this page, you will see a simple checklist that details high level requirements for our DSCR loans in Kentucky. If you want a more detailed quote for your specific deal, click "start" next to "apply for a DSCR loan" and our online quoting system will produce an accurate quote based on 14 questions related to your deal. Most investors are able to get a complete quote in under a minute because those 14 questions most investors will know answers to. Our most detailed DSCR Loan Requirements can be found here. Once you complete an online quote, you can proceed to your Loan File, where you can peruse the Loan Terms which will detail all the fees and proceeds of the loan in one convenient interface. Get an instant loan quote and Loan File


Otherwise, you can read on to see common guideline breakdowns:


Credit Score


In most cases, a 720 credit score will qualify you for the lowest interest rate and highest loan amount. We recommend protecting your credit score and striving for a 740+ score to make sure you get the best terms.


No Seasoning


Most DSCR lenders require 6 months of seasoning. At OfferMarket, we have a no seasoning program for qualified borrowers. We also offer 90 day (3 month) seasoning for borrowers with 700+ credit score or 5+ rental experience.


Rural Properties


Rural properties are not a good fit for DSCR loan programs. If your property is considered rural in any of the following ways, it may not be eligible:


  • Rural designation by Federal Government (CFPB, USDA)
  • Rural designation by appraiser
  • Population under 10,000
  • 5+ miles from a 100,000+ population center

Rural designation is a gray area so we recommend proceeding with caution on any purchase where the subject property checks one or more of the above bullets. We can't lend on rural properties. How can I find out, if my property is rural? Here are more detail on how to verify if your property is rural in our Rural Designation Search Tools. The 2 search tools are hosted by USDA Rural Development Property Eligibility and CFPB Rural and Underserved Areas Checker. Both of the tools must flag the property as not rural for it to be eligible for our funding. Use these instruction to find out if your property is considered rural


Guidelines Criteria
Max Loan Amount: Purchase 80% of purchase price (20% down payment)
Max LTV: Refi 75% cash out, 80% rate and term
Min credit Score 660
Min seasoning No seasoning or 3 months depending on experience, loan amount
Appraisal On-site (As Is 1004/1007 for single family, As Is 1025 for 2-4 units)
Credit report Tri merge
Property location Non-rural

Full list of requirements can be found here in DSCR loan requirements.


How to get a DSCR Loan in Kentucky?


The easiest way to start your Kentucky DSCR loan is to click the start button next to "apply for DSCR loan" banners at the top or bottom of this page. OfferMarket's team has expansive experience working with real estate investors across Kentucky.


What are the requirements for a DSCR loan in Kentucky?


If you scroll up on this page, you will see a simple checklist that details high level requirements for our DSCR loans in Kentucky. If you want a more detailed quote for your specific deal, click "start" next to "apply for a DSCR loan" and our online quoting system will produce an accurate quote based on 14 questions related to your deal. Most investors are able to get a complete quote in under a minute because those 14 questions most investors will know answers to. Our most detailed DSCR Loan Requirements can be found here. Once you complete an online quote, you can proceed to your Loan File, where you can peruse the Loan Terms which will detail all the fees and proceeds of the loan in one convenient interface. Get an instant loan quote and Loan File


Why use Kentucky DSCR Loans to buy investment properties?


DSCR (debt-service coverage ratio) loans can help real estate investors shorten their cash cycle and grow their rental portfolios more rapidly in a few key ways. First, the higher leverage and lower down payments allowed by DSCR loans mean investors can acquire more properties with the same amount of cash on hand, rather than tying it all up in larger down payments. Additionally, the option for interest-only payments creates more positive cash flow that can be reinvested into new property acquisitions. Finally, DSCR underwriting based solely on the rental income of the property itself, rather than the investor's personal income, enables investors to scale their portfolios more quickly without running into debt-to-income ratio restrictions.