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

Delaware’s real‑estate market punches above its weight. Anchored by the chemistry and pharmaceutical industries in Wilmington and the beach tourism of Sussex County, the state’s rental demand continues to grow despite its small size. Home values have risen roughly 3.4 % over the past year and median prices hover around $360 k, making the First State attractive for investors seeking cash‑flowing rentals without New‑Jersey or D.C. price tags. With limited housing supply in towns like Newark and Dover and strong population growth driven by commuters from Philadelphia and Baltimore, DSCR loans are increasingly used by investors looking to qualify based on property income rather than personal W‑2s.

DSCR (Debt Service Coverage Ratio) loans evaluate whether a property’s net operating income (NOI) can cover its debt obligations. The ratio is calculated by dividing NOI by the property’s annual debt service. A DSCR of 1.0 means the property’s income equals its costs; lenders often prefer ratios between 1.0 and 1.25, though some will accept lower ratios with compensating factors. Throughout this guide we’ll explain how DSCR loans work in Delaware, rank the top lenders serving the state, and offer tips for investors targeting Wilmington’s rowhouses or beach‑town rentals in Rehoboth or Bethany.

How We Ranked Delaware’s DSCR Lenders

To rank the lenders, we assessed program transparency, minimum DSCR requirements, maximum loan‑to‑value (LTV) ratios, minimum credit scores, typical loan amounts, property types accepted, speed of underwriting/closing, short‑term‑rental friendliness, state availability, borrower reviews, and support for first‑time investors. Preference was given to lenders that publish their DSCR criteria and actively lend in Delaware.

Top DSCR Lenders in Delaware (Select Home Loans #1)

1. Select Home Loans – Best Overall

Website: SelectHomeLoans.com

Phone: 888-550-3296

• About: Florida‑based mortgage lender with expanding DSCR division; strong presence across the Mid‑Atlantic. A February 2025 article on Select’s website ranks Select Home Loans as the top DSCR lender in Orlando, noting rates around 6.5–8 %, down payments from 20 %, loan amounts $75k–$2M, closing in 15–25 days and flexible DSCR thresholds as low as 0.75 (0.5 with strong equity). Although the article focuses on Florida, Select’s DSCR program follows the same guidelines in other states.
  
• Best for: Investors seeking fast closings and flexible DSCR requirements; both long‑term rentals and vacation rentals.
  
• Coverage: Lends in Delaware and most U.S. states.
  
• Min DSCR: As low as 0.75 (0.5 with high equity).
  
• Max LTV: 80 %, typical down payments 20 %.
  
• Min FICO: 660 (typical).
  
• Typical loan amounts: $75,000 – $2,000,000.
  
• Eligible properties: Single‑family homes, 2–4 units, condos, townhomes; supports vacation rentals.
  
• Prepayment penalty: Generally 3–5 years; can be bought down.
  
• Documentation: DSCR/no‑income documentation; bank statements and rent roll.
  
• Underwriting/close time: 15–25 days (fastest among peers).
  
• Notable features: No personal income verification; allows DSCR below 1.0 with compensating equity; no origination fee; strong local expertise.
  
• Sources: Select Home Loans DSCR guide for Orlando (Nov 2024).

2. Longleaf Lending

• About: Veteran‑owned lender specializing in long‑term DSCR loans. Provides dedicated pages for each state.
  
• Best for: Investors wanting no‑income verification and 30‑year fixed terms.
  
• Coverage: Serves Delaware and many other states.
  
• Min DSCR: 1.0 to 1.2 (lower ratios possible).
  
• Max LTV: 80 %.
  
• Min FICO: 660.
  
• Typical loan amounts: $75k–$2M.
  
• Eligible properties: Single‑family homes, duplexes, triplexes, four‑plexes; allows short‑term rentals.
  
• Prepayment penalty: 3 or 5 years (declining).
  
• Documentation: DSCR (no personal income).
  
• Underwriting/close time: As fast as 2 weeks.
  
• Notable features: Veteran‑owned; terms current as of Aug 25 2025; online calculator and quick term sheets.
  
• Sources: Longleaf Lending Delaware DSCR page.

3. Visio Lending

• About: National DSCR lender known for vacation‑rental expertise and portfolio loans. According to a lending guide, Visio requires minimum credit scores of 680, no bankruptcies in the last four years, and zero late mortgage payments in the previous 12 months.
  
• Best for: Short‑term‑rental investors and small portfolios; works with first‑time investors.
  
• Coverage: Lends in Delaware (confirmation on “Where We Lend” page). Georgia, Hawaii and Illinois borrowers must be under an LLC.
  
• Min DSCR: 1.0.
  
• Max LTV: 80 % for purchases, 70 % for cash‑out.
  
• Min FICO: 680.
  
• Typical loan amounts: $150k+.
  
• Properties: 1–4 units, townhomes, condos; no mobile homes.
  
• Prepayment: 3–5 years.
  
• Documentation: DSCR; requires appraiser‑produced Form 1007 market rent.
  
• Close time: Roughly 3–5 weeks.
  
• Notable features: Interest‑only options; allows portfolio loans; supports Airbnb projections.
  
• Sources: Visio Lending program details and MyPerfectMortgage summary.

4. Kiavi

• About: Technology‑driven DSCR lender with digital application process.
  
• Best for: Investors seeking a streamlined, online experience.
  
• Coverage: Lends in 45 states including Delaware.
  
• Min DSCR: 1.1.
  
• Max LTV: 75 %.
  
• Min FICO: 680 (typical).
  
• Typical loan amounts: Up to $1.5 M.
  
• Properties: 1–4 units; no condos or vacation rentals.
  
• Prepayment: 3 or 5 years.
  
• Close time: 3–4 weeks.
  
• Notable features: 30‑year fixed or ARM; digital portal; best for borrowers comfortable with online process.
  
• Sources: MyPerfectMortgage DSCR lender comparison and Kiavi states list.

5. CoreVest

• About: National lender offering single‑asset and portfolio DSCR loans.
  
• Best for: Seasoned investors needing large loan amounts or portfolio financing.
  
• Coverage: Lends in Delaware (2025 state list).
  
• Min DSCR: 1.20 for single‑asset loans.
  
• Max LTV: 75 %.
  
• Min FICO: 620 for portfolio credit lines.
  
• Typical loan amounts: $67.5k–$1.4M for single‑asset loans and $500k–$100M for portfolios.
  
• Properties: Single‑family, condos, townhomes, 2–4 units; excludes manufactured, mixed‑use and vacation rentals.
  
• Prepayment: 3/2/1 step‑down.
  
• Documentation: DSCR; requires personal guaranty and full appraisal.
  
• Close time: 30–40 days.
  
• Notable features: Portfolio loans up to $100M; interest rates starting around 5.5 %.
  
• Sources: CoreVest product matrix.

6. Angel Oak Capital

• About: Non‑QM lender offering DSCR loans with high LTV options and flexible DSCR requirements.
  
• Best for: Experienced investors needing higher leverage.
  
• Coverage: Lends nationwide including Delaware.
  
• Min DSCR: No‑ratio option; can lend even if DSCR is below 1.0.
  
• Max LTV: 85 % purchase (requires FICO ≥ 720), 75 % cash‑out.
  
• Min FICO: 680.
  
• Typical loan amounts: $100k–$3 M.
  
• Properties: 1–4 unit residential; no first‑time investors.
  
• Prepayment: 3 years typical.
  
• Close time: 3–5 weeks.
  
• Notable features: Interest‑only options; allows up to five DSCR loans simultaneously.
  
• Sources: Angel Oak DSCR program details.

7. Easy Street Capital

• About: Private lender known for its EasyRent DSCR program.
  
• Best for: Investors seeking high LTV and loan amount flexibility.
  
• Coverage: Lends in Delaware and 30+ states.
  
• Min DSCR: Typically 1.0.
  
• Max LTV: 85 % purchase, 75 % refinance.
  
• Min FICO: 640.
  
• Typical loan amounts: $75k–$3.5M; blanket loans up to $5M.
  
• Properties: Single‑family, condos, vacation rentals up to 10 units.
  
• Prepayment: 3–5 years.
  
• Close time: 3–4 weeks.
  
• Notable features: Interest rates start at 5.5 %; allowances for non‑traditional borrowers; short‑term‑rental friendly.
  
• Sources: Easy Street Capital DSCR details.

8. New Silver

• About: Fintech lender offering DSCR loans with no personal income requirement.
  
• Best for: Investors needing fast funding and AirDNA‑based underwriting for vacation rentals.
  
• Coverage: Lends nationally.
  
• Min DSCR: No minimum; uses property cash flow and projections.
  
• Max LTV: 75 %.
  
• Min FICO: 660.
  
• Typical loan amounts: $100k–$2M.
  
• Properties: 1–4 units; allows STRs using AirDNA projections.
  
• Prepayment: 3‑year typical; no penalty after year three.
  
• Close time: 2–3 weeks.
  
• Notable features: Interest rates start near 6 %; accepts lower DSCR with strong rents; origination fee 0–2 %.
  
• Sources: New Silver DSCR program details and MyPerfectMortgage article.

Comparison Table

Lender	Min DSCR	Max LTV	Min FICO	Typical rate range*	Program highlights	Link
Select Home Loans	0.75 (0.5 with equity)	80 %	660	6.5–8 %	Fast closings; no origination fee; supports STRs	Select
Longleaf Lending	1.0–1.2	80 %	660	from 6.6 %	30‑yr fixed; quick 2‑week closings	Longleaf
Visio Lending	1.0	80 % (70 % cash‑out)	680	6.5–9 %	STR‑friendly; portfolio loans	Visio
Kiavi	1.1	75 %	680	6.5–8.5 %	Digital platform; fast quotes	Kiavi
CoreVest	1.20	75 %	620	5.5–8 %	Large loan sizes; portfolio financing	CoreVest
Angel Oak	Below 1.0 allowed	85 % purchase	680	6.5–9 %	High leverage; no‑ratio option	Angel Oak
Easy Street	~1.0	85 % purchase	640	5.5–8 %	Vacation‑rental friendly; loans up to $3.5M	Easy Street
New Silver	None	75 %	660	6–8 %	AirDNA underwriting; fintech platform	New Silver

*Rates vary by borrower profile, property type and market; they are illustrative ranges and not quotes.

Delaware DSCR Guide

DSCR Formula and Calculation

Debt Service Coverage Ratio (DSCR) is calculated by dividing a property’s Net Operating Income (NOI) by its total annual debt payments. NOI equals gross rental income minus operating expenses (taxes, insurance, HOA fees). For example, suppose a Wilmington duplex generates $3,200 in monthly rent ($38,400 annually) and expenses total $8,000 per year. The NOI is $30,400. If a DSCR loan requires annual payments of $28,000, the DSCR is 1.09 ($30,400 / $28,000). A DSCR above 1.0 indicates the property covers its debt obligations. Many Delaware lenders accept DSCRs between 1.0 and 1.2, though Select Home Loans will go as low as 0.75 for strong deals.

Example Calculation Using Delaware Rents

• Property: Single‑family home in Dover rented to a long‑term tenant.
  
• Monthly rent: $2,100 (median for a 3‑bed home).
  
• Annual rent: $25,200.
  
• Expenses: Property taxes ($2,800), insurance ($1,000), maintenance ($1,200). Total expenses = $5,000.
  
• NOI: $25,200 – $5,000 = $20,200.
  
• Loan: 30‑year DSCR mortgage of $200,000 at 7.0 % fixed (P&I + T&I ~ $17,800 per year).
  
• DSCR: $20,200 / $17,800 ≈ 1.13. This exceeds the 1.0 threshold required by most lenders and should qualify for DSCR financing.
  

Short‑Term Rental Considerations

Beach towns like Rehoboth, Bethany and Dewey attract millions of visitors each year, creating lucrative short‑term‑rental (STR) opportunities. However, many homeowners’ associations restrict rentals to weekly or monthly terms. Investors should verify local ordinances and condo covenants before purchasing. DSCR lenders typically allow STRs if historical or AirDNA rental projections support cash flow (New Silver uses AirDNA data). Select Home Loans offers DSCR loans for vacation rentals but may require additional reserves.

Local Investor Considerations

• Wilmington & Newark: Delaware’s largest city and its college town (home to the University of Delaware) feature robust rental demand. Proximity to I‑95 and major employers (finance, pharmaceuticals) keeps vacancy rates low. Older rowhouses in Trolley Square and new construction in Pike Creek provide diverse options. Investors should budget for city transfer taxes and occasional lead‑paint mitigation.
  
• Dover & Middletown: The state capital and a rapidly growing suburb. Dover’s median rent hovers near $1,900/month. Middletown’s population doubled since 2010, creating strong demand for single‑family rentals.
  
• Southern Delaware beaches: Rehoboth, Bethany and Dewey see peak season demand from May through September. Off‑season occupancy drops, so DSCR calculations should factor seasonal variations. Some lenders require 12‑month average rent or use DSCR based on projected annual income.

Qualification Checklist for Delaware DSCR Loans

• Credit score: Aim for a 660+; higher scores secure better rates.
  
• Reserves: 3–6 months of principal, interest, taxes, and insurance (PITI) in liquid funds.
  
• Appraisal & 1007 rent schedule: Lenders will order a full appraisal and market‑rent analysis to determine NOI.
  
• Lease agreement or market rent: Provide a signed lease or evidence of market rents.
  
• Entity structure: Many lenders (Visio) require properties to be titled in an LLC for liability reasons.
  
• Short‑term‑rental rules: Verify county and HOA regulations. Some coastal towns restrict rentals to 7–14 days.
  

Rates and Terms Snapshot

DSCR loan pricing in Delaware depends on property location, DSCR ratio, loan size, credit score and market rates. At the time of writing, national DSCR lenders advertise rates from 6.5 % to 8.5 % for 30‑year fixed loans, with points of 1–3 and maximum LTVs around 75–85 % depending on credit and DSCR. Lower DSCR ratios or cash‑out refinances may reduce the maximum LTV to 70 %. Borrowers should expect to pay 0–2 % origination fees and prepayment penalties for the first 3–5 years.

Disclaimer: Rates vary daily and by lender. Programs, eligibility and pricing can change without notice. This article is informational and not a commitment to lend.

Delaware DSCR FAQs

1. What DSCR do lenders require in Delaware? Most lenders look for DSCR ratios between 1.0 and 1.25, although Select Home Loans can go as low as 0.75 with compensating equity.
   
2. Can I use a DSCR loan for a duplex or four‑plex? Yes. All lenders on this list finance 1–4 unit properties. CoreVest also offers portfolio loans for 5+ units.
   
3. Do DSCR lenders allow vacation rentals at the beach? Many do. Lenders like Select Home Loans and New Silver allow DSCR loans for short‑term rentals if projected income supports the debt payments. Always verify local zoning and HOA rules.
   
4. What reserves are needed? Expect 3–6 months of principal, interest, taxes and insurance in reserves; some lenders require 12 months for larger loans or DSCRs below 1.0.
   
5. Can I buy under an LLC? Yes. Many lenders require or prefer properties be held in an LLC for liability reasons.
   
6. How long do DSCR loans take to close? Select Home Loans can close in 15–25 days. Most lenders close within 3–5 weeks.
   
7. Are DSCR loans available to first‑time investors? Most lenders accept first‑time investors; however, Angel Oak requires previous landlord experience.
   
8. Do DSCR lenders verify personal income? No. DSCR loans rely on rental income; personal W‑2s or tax returns are typically not required.
   

Call to Action

If you’re ready to invest in Delaware’s thriving rental markets—whether a triplex in Wilmington or a beach bungalow in Dewey—Select Home Loans should be your first call. Their flexible DSCR thresholds, 20 % down options, no origination fees and lightning‑fast closings make them the state’s top choice. Get a free quote today.