Kiavi DSCR Loans vs. OfferMarket DSCR Loans: Which Lender Fits Your Needs?

Last Updated: January 25, 2025

When it comes to financing your real estate investments, Debt Service Coverage Ratio (DSCR) loans offer an attractive solution for scaling your rental portfolio. These loans are unique because they evaluate the property’s income rather than your personal finances. For real estate investors like you, DSCR loans simplify the approval process, making them a great choice.

A DSCR loan (Debt Service Coverage Ratio loan) qualifies borrowers based on property cash flow rather than personal income. Lenders assess whether the Gross Rental Income divided by PITIA (Principal, Interest, Taxes, Insurance, and HOA) meets the required threshold — usually 1.0 or higher. OfferMarket specializes in DSCR loans that prioritize investment property income, not W-2s or tax returns, making it easier for real estate investors to scale.

Two prominent players in the DSCR loan space are Kiavi and OfferMarket. Kiavi markets itself as a tech-savvy lender with flexible options, while we at OfferMarket focus on transparency, cost savings, and investor-first policies. Let’s dive into the differences between the two lenders, so you can choose the one that’s best for your next investment.

What Is Kiavi?

Kiavi is a private lender specializing in real estate investment loans, including DSCR loans, fix-and-flip loans, and rental property financing. With a reputation for being tech-forward, Kiavi simplifies the loan process by eliminating manual paperwork and replacing it with an easy-to-use online platform.

Key Features of Kiavi DSCR Loans:

1.Competitive Rates:

• Rates start at 6.75%, but they may include a spread (a markup to the base rate).
  
  
• Offers adjustable-rate mortgages (ARMs) and fixed-rate loans.

2.Flexible Loan Terms:

• Loan-to-value (LTV) ratios of up to 80%.
  
  
• Fixed rates for 30 years or ARMs with fixed rates for 5 or 7 years.
  
  
• Interest-only options are available.

3.Streamlined Processes:

• No tax returns, pay stubs, or personal income verification are required.
  
  
• You can pre-qualify, apply, and track your loan status entirely online.

4.Property Types:

• Single-family rentals, condos, manufactured homes, PUDs, and 2–4 unit properties.

5.BRRRR-Friendly:

• Supports the Buy, Rehab, Rent, Refinance, Repeat (BRRRR) strategy with short-term fix-and-flip loans that transition into long-term rental loans.

Kiavi is a go-to lender for tech-savvy real estate investors looking for flexible options and the convenience of a streamlined online process. However, the costs associated with their loans—such as interest rate markups and additional fees—can make a significant dent in your profits.

What Is OfferMarket?

At OfferMarket, we take a different approach. As a private lender specializing in DSCR loans, we focus on transparency, cost savings, and making the lending process straightforward for real estate investors like you. Unlike many lenders, we don’t pad our fees or add hidden charges. Instead, we prioritize giving you the best possible deal upfront.

We require a minimum credit score of 660, and the amount you can borrow depends on your credit tier, property’s DSCR, and desired leverage (LTV). OfferMarket DSCR loans are available for non-owner-occupied investment properties only and are not permitted for rural-designated properties, unless specific exceptions apply.

Key Features of OfferMarket DSCR Loans:

1.Transparent Rates:

• Interest rates range from 6.5% to 8.5%, and we don’t add rate spreads.
  
  
• The rate you’re quoted is the rate you’ll pay, with no surprises.

2.Low Fees:

• Origination fees are between 0.5–2 points (minimum $2,000).
  
  
• No underwriting, processing, or servicing fees.

3.Faster Closings:

• Loans close in 15–30 days, giving you a competitive edge in the market.

4.Simplified Documentation:

• We require only essential documents like a credit check, liquidity verification, and an appraisal.
  
  
• No need for W-2s, tax returns, or income verification.

5.Wide Reach:

• We lend in over 45 states, providing unparalleled access for investors looking to grow nationwide.

OfferMarket DSCR Loan Highlights

• Minimum Down Payment: Typically 20–35%, depending on credit score and property type.

• Maximum LTV: Up to 80% for purchases and rate/term refinances; up to 75% for cash-out refinances.

• Minimum Credit Score: 660; higher scores (720+) qualify for higher LTV and better rates.

• Minimum DSCR: Typically 1.1; may be 1.2+ for lower credit scores or cash-out deals.

• Eligible Properties: Single-family homes, 2–4 unit properties, condos, short-term rentals (e.g., Airbnb). Properties flagged as rural on appraisal reports are generally ineligible.

• Interest Rate Structure: Based on 5-Year Treasury + Credit Spread. Spread is determined by credit score, LTV, DSCR, property type, location, and prepayment terms.

Head-to-Head Comparison: Kiavi vs. OfferMarket

1. Interest Rates: Transparency Matters

Kiavi’s Rates:

Kiavi offers competitive starting rates at 6.75%, but they often include a rate spread. This markup can increase your overall borrowing costs, making the loans less appealing in the long run. Additionally, their rates depend on borrower qualifications, property types, and market conditions.

OfferMarket’s Rates:

We take pride in our no rate spread policy. This means the rate you’re quoted is the actual rate from our capital providers, with no additional markups. Our rates range from 6.5% to 8.5%, depending on your credit score and the specifics of your deal.

Our rates are based on the 5-Year US Treasury yield + a credit spread. The credit spread reflects your credit score, LTV, DSCR ratio, property type, location, and whether a prepayment penalty is selected. A stronger borrower profile means a lower spread and a more competitive interest rate.

Winner: OfferMarket

With no hidden rate spreads, we save you thousands of dollars over the life of your loan.

2. Fees: The True Cost of Borrowing

Kiavi’s Fees:

Kiavi charges 2–4 points in origination fees, which is above the industry average. You’ll also encounter additional costs like underwriting, processing, and servicing fees. These fees, while common, can significantly increase the total cost of your loan.

OfferMarket’s Fees:

Our fee structure is simple and investor-friendly. You’ll only pay:

• Origination Fees: 0.5–2 points, with a $2,000 minimum.
• Third-Party Costs: Appraisal, title, and legal fees passed on at cost.
• No Junk Fees: No underwriting, processing, or servicing fees.

Winner: OfferMarket

Our low fees and transparent pricing make us the clear choice for cost-conscious investors.

3. Funding Speed: Time Is Money

Kiavi’s Speed:

Kiavi typically funds loans within 30–45 days, which can feel slow in today’s competitive markets. Delays often occur due to third-party reports or additional document requests.

OfferMarket’s Speed:

We know that speed is critical for real estate investors. That’s why we close DSCR loans in as little as 15–30 days. Our tech-driven platform and dedicated loan managers ensure a smooth, fast process.

Winner: OfferMarket

Our faster funding timeline gives you a competitive edge.

4. Loan Products: Flexibility vs. Simplicity

Kiavi’s Loan Options:

Kiavi offers a range of loan products, including:

• Fixed-Rate Loans: Fully amortizing 30-year terms.
• ARMs (5/1 and 7/1): Fixed rates for the first 5 or 7 years, then variable.
• Interest-Only Loans: Lower monthly payments during the interest-only period.

OfferMarket’s Loan Options:

We focus exclusively on fixed-rate DSCR loans, providing stability and predictability for long-term investments. While we don’t offer interest-only options, our fixed rates help you build equity faster.

Eligible property types include single-family rentals, 2–4 unit multifamily, condos, and short-term rentals. OfferMarket does not support DSCR loans for owner-occupied properties or properties designated as rural on the appraisal report, unless CFPB or USDA exceptions apply.

Winner: Depends on Your Strategy

If you need short-term cash flow flexibility, Kiavi’s ARMs and interest-only options may appeal to you. But for long-term stability and lower overall costs, OfferMarket is the better choice.

5. Geographic Reach: Where Can You Invest?

Kiavi’s Coverage:

Kiavi lends in 32 states and Washington D.C., which limits your ability to expand into certain regions.

OfferMarket’s Coverage:

We lend in over 45 states, including major markets like California, Texas, Florida, and New York. Whether you’re investing locally or nationally, we’ve got you covered.

Winner: OfferMarket

Our wider geographic coverage ensures you can seize opportunities anywhere in the U.S.

Why OfferMarket Stands Out

While Kiavi has built a strong reputation with its tech-forward platform and flexible loan options, we at OfferMarket deliver more value across the board.

Here’s why you should choose OfferMarket:

1. Lower Costs: No rate spreads, minimal fees, and transparent pricing save you thousands.
   
   
2. Faster Closings: Close in as little as 15 days, compared to Kiavi’s 30–45 days.
   
   
3. Simplified Process: Our low-doc requirements make it easier to secure financing.
   
   
4. Nationwide Reach: Invest wherever you want with confidence.
   
   
5. Investor-Focused Approach: We prioritize your success and work hard to make every deal profitable for you.

Ready to Get Started?

Here’s how you can secure your DSCR loan with us:

1. Request Your Quote: Visit OfferMarket.us to get an instant loan quote.
   
   
2. Upload Required Documents: Provide your credit check, liquidity verification, and appraisal authorization.
   
   
3. Close Quickly: Enjoy a smooth, hassle-free process and close your loan in as little as 15 days.

How to Compare DSCR Lenders Like OfferMarket vs. Kiavi

When evaluating DSCR lenders, consider:

• Minimum Credit Score

• Maximum LTV for Purchase and Cash-Out

• Minimum Required DSCR

• Down Payment Range

• Eligible Property Types (including rural and short-term)

• Interest Rate Structure (rate spread vs. no spread)

• Fee Transparency (origination, underwriting, servicing)

• Prepayment Penalty Options

• Closing Speed and Documentation Requirements

Final Thoughts

Both Kiavi and OfferMarket offer strong DSCR loan programs, but the differences are clear: OfferMarket gives you lower costs, faster funding, and a transparent, investor-first approach. If you’re ready to grow your real estate portfolio with confidence, we’re here to help.

Let’s make your next investment a success!

FAQ

How does OfferMarket determine DSCR loan interest rates?
Your rate is based on the 5-Year US Treasury rate plus a credit spread, which reflects your credit score, LTV, DSCR ratio, and property risk profile. No rate padding or hidden markup — just true capital market pricing.

Can I use a DSCR loan for Airbnb or short-term rentals?
Yes, OfferMarket supports DSCR loans for short-term rentals like Airbnb, provided the projected income meets DSCR thresholds and the property has a verifiable rental estimate or history.

Does OfferMarket offer no-money-down DSCR loans?
No. A minimum 15–20% down payment is required, and higher leverage (80% LTV) is available only for qualified borrowers.

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