FAQ
DSCR questions, answered plainly
The questions Ohio investors ask us most, with answers that do not hide behind fine print.
What is a DSCR loan?
A DSCR loan is a business-purpose mortgage on investment property that qualifies mainly on the property’s rent compared with its monthly payment, rather than on your personal income. DSCR stands for debt service coverage ratio.
How is the DSCR calculated?
Most DSCR lenders divide the property’s monthly rent by its full monthly payment: principal, interest, property taxes, insurance and any HOA dues. Rent of $1,500 against a $1,250 payment is a 1.20 ratio.
Is DSCR Loans Ohio a lender?
No. DSCR Loans Ohio is a brand of Loan Daddy LLC, a mortgage broker. We arrange financing by shopping wholesale lenders; we do not lend our own money or make credit decisions.
Do I need tax returns or paystubs?
Generally no. DSCR lenders qualify the property on rent instead of your personal income. They still review credit, verified funds for down payment and reserves, and the property itself.
Can I use a DSCR loan for a home I will live in?
No. We only arrange business-purpose loans for non-owner-occupied investment property. If you or a family member will live in the property, this is not the right program.
What DSCR ratio do lenders want?
It varies by lender and program. Many look for a ratio at or above 1.00, and better terms often come with higher ratios. Some programs allow ratios below 1.00 with other strengths in the file. We match your numbers to lenders whose guidelines fit.
Where does the rent figure come from?
Usually from the appraiser’s rent schedule, which compares your property with nearby rentals, or from a signed lease when the lender accepts it. Some lenders use the lower of the two.
Can I close in an LLC?
Many DSCR lenders allow vesting in an LLC or other entity, typically with a personal guarantee. Have your formation documents, operating agreement and EIN ready.
Do you quote interest rates on this site?
No. Pricing depends on the property, the ratio, credit, leverage, loan size and the lender, and it changes often. We share specific terms only after reviewing your scenario.
Which Ohio cities do you cover?
We focus on Columbus, Cleveland, Cincinnati, Dayton, Toledo and Akron, and we can review investment properties elsewhere in Ohio as well.
How do Ohio property taxes affect my ratio?
Taxes are part of the payment, so they directly affect the DSCR. Ohio taxes are based on the county auditor’s valuation, which can change at reappraisals and updates. Estimate taxes from your purchase price rather than the seller’s current bill.
Can I refinance out of hard money with a DSCR loan?
Yes, that is a common use. Pay attention to seasoning rules, which affect whether the lender uses your cost basis or the new appraised value.
Do you finance short-term rentals?
Some wholesale lenders accept short-term rental income documented with platform history, while others use long-term market rent only. Tell us how the property operates and we will look for a fit.
What happens after I submit the form?
A Loan Daddy LLC loan officer reviews your scenario and contacts you. Submitting the form is not an application for credit and is not a commitment to lend.
Bring us the rent roll. We will bring the lender shortlist.
Tell us the property, the rent and what you want the loan to do. We shop wholesale DSCR lenders and come back with what the numbers support.