Best DSCR Lenders in Connecticut (Rental Property Loans) [2025]

Connecticut sits at the crossroads of New England and the greater New York City metro, blending historic towns and bustling suburbs. The state’s housing market is unique: nearly 68 % of its housing units were built before 1980 and over 25 % before 1950, leaving many properties with aging roofs, outdated heating systems and potential lead paint. Landlord‑tenant regulations are strict—rent is considered late only after a 9‑day grace period for monthly leases or 4 days for weekly leases—and evicting a tenant can take four to seven weeks. For real estate investors and self‑employed borrowers, debt service coverage ratio (DSCR) loans offer a way to finance rental properties based on the property’s income rather than personal earnings. This 2025 guide ranks the best DSCR lenders active in Connecticut, explains how DSCR loans work and outlines local considerations like rent levels in Hartford, New Haven, Stamford and Bridgeport. Select Home Loans emerges as our top pick for its flexible underwriting and willingness to finance older housing stock.

How we ranked lenders

Our ranking criteria emphasize transparency, flexibility and local relevance:

1. Guideline clarity – lenders with well‑defined DSCR calculations, credit score thresholds and LTV limits ranked highest.
   
2. DSCR and LTV allowances – programs requiring low DSCRs and offering high LTVs enable investors to maximize leverage.
   
3. Credit score requirements – we favored lenders open to mid‑600 scores; high minimum FICOs reduced rankings.
   
4. Closing speed and customer service – efficient underwriting and responsive communication matter in markets where properties move fast.
   
5. Property type diversity – ability to finance 1–4 unit properties, condos, townhomes and small multifamily buildings.
   
6. STR friendliness – given Connecticut’s coastal towns and vacation rentals, we valued lenders that accept Airbnb income.
   
7. State availability – only lenders actively lending in Connecticut were included.
   
8. Support for first‑time investors – lenders offering education and allowing title in an LLC scored higher.

Top DSCR lenders in Connecticut

1. Select Home Loans – Best overall for Connecticut investors

Website: SelectHomeLoans.com

Phone: 888-550-3296

Select Home Loans tops our list because of its flexible DSCR criteria, high LTV allowances and track record of working with first‑time landlords. The lender covers all eight counties in Connecticut, financing properties in cities like Hartford, New Haven, Stamford, Bridgeport, Norwalk and Waterbury. While based outside the state, Select Home Loans has local knowledge and can help navigate issues such as older housing stock and property repairs. Minimum DSCR requirements vary by deal; many loans qualify with ratios around 1.0. LTVs typically reach 80 % on purchases and rate‑term refinances and 75 % on cash‑out refinances. Borrowers with mid‑600 credit scores or above can qualify. Loan amounts generally start at $100 k and can exceed $3 million for larger portfolios. Eligible properties include single‑family rentals, duplexes, triplexes, four‑plexes, condos, townhomes and small multifamily buildings. Prepayment penalties often last three to five years with declining or flat options. No personal income documentation is needed; underwriting focuses on the property’s cash flow (rents, leases or market rent). Average closing time is two to three weeks with a complete file. Notable features include allowing title in an LLC, accepting AirDNA projections for short‑term rentals, and providing hands‑on guidance for investors dealing with older properties. Programs, eligibility and pricing are subject to change.

2. Easy Street Capital – Best for no DSCR minimum and flexible terms

Easy Street Capital’s EasyRent program is available in Connecticut and is ideal for properties that may not meet traditional DSCR thresholds. The program requires no minimum DSCR and offers rates starting in the mid‑5 % range. Down payments typically start at 20 %, equating to 80 % LTV on purchases. Investors must have credit scores 640 or higher. The lender offers 30‑year fixed and interest‑only options, allows transfers to an LLC without seasoning and finances short‑term rentals using AirDNA projections. BRRR loans enable up to 75 % LTV on cash‑out refinances. Given Connecticut’s older properties, Easy Street’s tolerance for lower DSCRs can help investors fund renovations while cash flow stabilizes.

3. Ridge Street Capital – Best for high leverage with a DSCR minimum

Ridge Street Capital lends in Connecticut with a program requiring a minimum DSCR of 1.0 and allowing up to 80 % LTV on purchases and rate‑term refinances and 75 % on cash‑out refinances. The lender typically requires a minimum credit score of 660. Ridge Street accepts vacation rental income and may use AirDNA data, making it appealing for investors in shoreline communities like Old Saybrook or Mystic. Loan amounts generally range from $75 k to $2 million, and closings can occur within three to four weeks.

4. Visio Lending – Best for new investors and short‑term rentals

Visio Lending provides DSCR loans with minimum DSCR of 1.0, maximum LTV of 80 % on purchases and 75 % on cash‑out refinances, and loan amounts up to $2 million. The lender supports first‑time investors and offers both 30‑year fixed and interest‑only options. Visio accepts AirDNA projections, enabling investors to finance Airbnb or vacation rentals in coastal towns or ski areas. Because Visio is comfortable underwriting non‑traditional income streams, it’s a strong option for investors in seasonal markets like the Connecticut Shoreline or Litchfield Hills.

5. Kiavi – Best for digital underwriting and portfolio growth

Kiavi offers a tech‑focused DSCR program with minimum DSCR around 1.1 and maximum LTV of 75 %, with loans up to $1.5 million. Borrowers upload documents via an online portal, and closings can occur quickly. Kiavi is ideal for investors who value convenience and speed and plan to acquire multiple properties in cities like Norwalk, Stamford or Bridgeport, where competition for quality rentals is high. A mid‑600 credit score is recommended.

6. CoreVest – Best for portfolio and small multifamily loans

CoreVest’s DSCR program offers minimum DSCR of 1.0, maximum LTV of 75 %, and loan amounts from $150 k to $2 million. The lender specializes in portfolio financing, allowing investors to bundle multiple properties under one loan. Non‑recourse options are available, and title can be held in an LLC. Given Connecticut’s high property values in Fairfield County and New Haven County, CoreVest is an attractive choice for investors with several single‑family rentals or small multifamily buildings.

7. Angel Oak Mortgage Solutions – Best for large loans and no‑ratio options

Angel Oak’s DSCR program allows minimum DSCR of 1.0 and includes no‑ratio options. The lender permits up to 80 % LTV on purchases and 75 % on cash‑out refinances with loan amounts up to $3 million. Investors can choose 30‑ or 40‑year amortizing terms or interest‑only periods. Angel Oak welcomes LLC borrowers and foreign nationals. With high loan limits, the program is suited for investors purchasing or refinancing larger properties in expensive markets like Greenwich (where average rents exceed $3,350 per month).

8. New Silver – Best for no DSCR minimum and quick closings

New Silver offers DSCR loans with no minimum DSCR, maximum LTV of 75 %, and loan amounts from $100 k to $2 million. The lender accepts AirDNA projections for short‑term rentals and provides 30‑year fixed and interest‑only programs. Because of its streamlined application process, closings can occur rapidly. New Silver is ideal for properties with irregular cash flow or investors seeking quick funding to compete in hot markets like Stamford (average rent around $2,767).

9. RCN Capital – Best for borrowers with strong credit scores

RCN Capital’s long‑term rental program features a minimum DSCR of 1.0 and a minimum FICO of 680. Loans range from $150 k to $1.5 million with rates starting near 5.50 %. Up to 80 % LTV is available on purchases and 75 % on cash‑out refinances. RCN Capital is best suited for investors with high credit scores who want competitive rates and professional service.

10. Lima One Capital – Best for combining rehab and long‑term financing

Lima One Capital lends in Connecticut and offers DSCR loans with minimum DSCR of 1.0, loan amounts from $100 k to $2.5 million, and up to 80 % LTV on purchases and rate‑term refinances. The program allows 75 % LTV on cash‑out refinances. Lima One also has a separate short‑term rental product requiring DSCR of 1.3+ and minimum FICO 700 with LTV up to 75 % purchase and 70 % cash‑out. Investors who plan to renovate or stabilize older Connecticut properties may benefit from Lima One’s combination of rehab and long‑term financing.

Comparison snapshot

To summarise the key points:

• Select Home Loans: DSCR down to 1.0, up to 80 % LTV, mid‑600 FICO, fast closings and LLC friendly.
  
• Easy Street Capital: No DSCR minimum, 80 % LTV, 640+ FICO, accepts AirDNA for STRs.
  
• Ridge Street Capital: DSCR 1.0, up to 80 % purchase LTV, 660+ FICO.
  
• Visio Lending: DSCR 1.0, up to 80 % LTV, Airbnb friendly.
  
• Kiavi: DSCR around 1.1, max LTV 75 %, digital platform.
  
• CoreVest: DSCR 1.0, LTV 75 %, portfolio loans.
  
• Angel Oak: DSCR 1.0 or no‑ratio, up to 80 % purchase LTV, $3 million loan limit.
  
• New Silver: No DSCR minimum, LTV 75 %, $100 k–$2 million loan size.
  
• RCN Capital: DSCR 1.0, 680+ FICO, up to 80 % purchase LTV.
  
• Lima One Capital: DSCR 1.0, up to 80 % LTV purchase, 75 % cash‑out, $100 k–$2.5 million loans.

Connecticut DSCR guide

DSCR formula overview

DSCR is calculated by dividing monthly gross rental income by monthly debt service (principal, interest, taxes and insurance). A ratio of 1.0 indicates the property’s income equals its debt obligation. Many lenders accept DSCR starting at 1.1 for improved terms. Properties with ratios below 1.0 may still qualify with lenders like Easy Street Capital or New Silver, but expect lower LTVs and higher rates.

Example DSCR using Connecticut rents

 reports that average rent in Connecticut is $1,872 per month, with studios at $1,589, one‑bedroom units about $1,872 and two‑bedroom units around $2,289. Consider purchasing a duplex in New Haven for $300,000 with a 20 % down payment. Each unit rents for $2,100 (roughly the average for New Haven), yielding $4,200 in monthly income. If your mortgage payment (principal and interest at 7 % fixed) plus taxes and insurance totals $3,200, the DSCR is $4,200 ÷ $3,200 = 1.31. This ratio would meet the requirements of most lenders, including Select Home Loans, Ridge Street, Visio and CoreVest. However, if you purchase an older four‑unit building in Hartford where rents are lower (around $1,314 per month for a one‑bedroom) and you anticipate significant maintenance costs, the DSCR may drop below 1.0. In that case, lenders like Easy Street Capital or New Silver, which accept no minimum DSCR, might be necessary while you renovate and raise rents.

Local investor considerations

Older housing stock: Roughly 68 % of Connecticut’s housing units were built before 1980 and over 25 % were built before 1950. Many homes have aging roofs, outdated heating systems and potential lead paint hazards. Maintaining and rehabilitating these properties is costly, and about 3.2 % of units are “other vacant,” suggesting dilapidation. DSCR lenders may require higher reserves or adjust LTV downward to account for renovation needs.

Eviction laws: Connecticut’s landlord‑tenant laws are strict. Rent is considered late only after a 9‑day grace period for monthly leases or 4 days for weekly leases, and eviction can take 4 to 7 weeks. Lenders may request additional reserves to cover potential non‑payment periods and legal expenses. Investors should also factor in legal fees and extended vacancies when underwriting deals.

Metro rents: Hartford averages rents around $1,314 per month, while Waterbury and East Hartford are lower at $1,124 and $1,250, respectively. More expensive markets include Old Greenwich ($4,168), New Canaan ($3,631) and Greenwich ($3,353). Stamford’s average rent is about $2,767. Investors should balance high rents with property taxes and maintenance costs.

Short‑term rentals: Connecticut’s shoreline communities attract summer tourists, while ski areas in the northwest draw winter visitors. Municipalities generally require STR permits and collect occupancy taxes, but the state does not have a uniform STR law. Lenders like Select Home Loans, Easy Street and Visio Lending accept AirDNA projections for vacation rentals but may limit LTV to 75 % and require higher DSCR. Always confirm local licensing rules before purchasing an STR.

Qualification checklist for Connecticut DSCR loans

1. Credit score: Most lenders require 640–680. Select Home Loans, Easy Street and New Silver accept mid‑600 scores, while RCN Capital and Lima One’s STR program require 680–700.
   
2. DSCR: Standard programs need at least 1.0. Easy Street and New Silver have no minimum DSCR.
   
3. Reserves: Plan for six to twelve months of PITI. Given slow eviction timelines, lenders may want 12 months or more in reserves.
   
4. Down payment: Expect a minimum of 20 %. Higher down payments may be required for older properties or those with low DSCR.
   
5. Appraisal: DSCR appraisals include market rent analysis (Form 1007). In older neighborhoods, appraisers consider condition and comparable rents.
   
6. Entity structure: Most lenders allow LLC ownership. Make sure your LLC is properly registered and has a separate bank account.
   
7. Lease documentation: Provide leases or rent rolls. For vacant or newly renovated units, lenders will use market rent from the appraisal.
   
8. Compliance: For STRs or multi‑family units, show proof of permits and compliance with local ordinances.

Rates and terms snapshot

Interest rates for DSCR loans in Connecticut vary based on DSCR level, credit score, LTV, property condition and loan size. As of mid‑2025, 30‑year fixed DSCR loans generally range from the high 6 % to mid‑9 %. Rates may be higher for older properties requiring substantial repairs or for investors with lower credit scores. Interest‑only options, cash‑out refinances and STR properties usually add rate premiums. Origination fees typically range from 1 % to 3 %, plus appraisal, processing and legal fees. Because Connecticut has high property taxes in some counties (particularly Fairfield County), lenders may escrow taxes and insurance. Always request a detailed loan estimate and compare offers. This information is subject to change and not a commitment to lend.

Frequently asked questions

What DSCR do lenders require in Connecticut? Most lenders require a DSCR of at least 1.0. Some programs may require higher ratios (1.10–1.25) for high‑LTV or STR properties. Easy Street Capital and New Silver have no minimum DSCR.

Do DSCR lenders finance duplexes and four‑plexes? Yes. Select Home Loans, CoreVest, New Silver, Angel Oak and others finance 2–4 unit properties. Some may adjust LTV or require higher DSCR.

Can I use Airbnb income to qualify? Many lenders, including Select Home Loans, Easy Street, Visio, New Silver and Lima One, accept projected STR income using AirDNA data. LTVs may be limited to 75 % and DSCR requirements may increase.

What credit score do I need? Most programs accept 640–680. Select Home Loans and Easy Street are flexible; RCN Capital requires 680, and Lima One’s STR program requires 700.

How long does eviction take in Connecticut? Eviction can take 4 to 7 weeks, depending on the reason for eviction and court schedules. Rent is considered late only after a 9‑day grace period for monthly leases or 4 days for weekly leases.

Can I hold the property in an LLC? Yes. Most DSCR lenders allow borrowers to hold title in an LLC or corporation. Make sure your entity is properly formed and has an operating agreement.

Are DSCR loans available to foreign nationals? Some lenders, like Angel Oak, accept foreign nationals with valid visas or passports and require higher down payments.

What are the downsides of DSCR loans? DSCR loans typically carry higher rates than conforming mortgages, require significant reserves and may include prepayment penalties. However, they provide flexibility for self‑employed investors and properties that wouldn’t qualify for conventional financing.

Call to action

Whether you’re investing in a charming Victorian in Hartford, a modern condo in Stamford or a beach cottage along the Connecticut shoreline, Select Home Loans stands ready to help finance your next rental. With flexible DSCR requirements, high LTV allowances and an understanding of the state’s aging housing stock, Select Home Loans is an excellent first stop for your financing needs. Contact them today to discuss your project and receive a customized quote. Remember, this article is informational and not a commitment to lend; programs, eligibility and pricing may change without notice.