Is there a limit on how many rental properties I can finance with DSCR loans?
The short answer
Most DSCR lenders don't put a hard cap on how many rental properties you own or finance, unlike conventional loans, which cap most investors at 10 financed properties. Some lenders limit how many loans or how much total balance they'll hold with one borrower. The Mortgage Advisory helps investors with growing portfolios spread loans across programs so they can keep buying.
Why do investors hit a wall with conventional loans?
Conventional loans backed by Fannie Mae and Freddie Mac generally cap investors at 10 financed properties, including the home you live in. Each additional property also needs more reserves and full income documents, so it gets harder with every purchase.
How do DSCR loans help?
- No set property cap at most lenders
- Each property qualifies on its own rent, so one more rental doesn't hurt your personal debt-to-income
- Reserves are often based on the property you're buying, not your whole portfolio (it varies by program)
Do lenders limit their exposure?
Some do. A lender may cap the number of loans or the total dollars it will lend to one borrower. Working with a lender that has access to several DSCR programs keeps you from getting stuck.
What about financing several properties at once?
Some investors use a blanket or portfolio loan that covers several properties under one loan. These are usually commercial-style loans with different terms. For most investors, separate DSCR loans on each property are simpler and easier to refinance or sell one at a time.
Our take
If you're planning to own more than 10 rentals, build your financing plan now, not when you hit the wall. I'll map out which properties stay conventional and which move to DSCR so your next purchase is never on hold.
Ace Ausar, Mortgage Banker · NMLS #1143018
The Mortgage Advisory, Inc. · NMLS #1549739
Reviewed by Ace Ausar, NMLS #1143018 · Updated
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