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

Illinois, home to America’s third‑largest city and a diverse network of mid‑sized metros, remains a compelling market for rental investors. After years of volatility, the state’s housing market is stabilizing. Experts expect home prices to increase 3–4 % statewide in 2025, with Chicago’s median home price around $385 k. Investor yields vary: Chicago and suburbs offer rental yields of 4–6 %, while smaller cities like Rockford, Peoria and Bloomington may deliver 4–6 % appreciation and higher cash flow. DSCR loans, which evaluate property income rather than personal income, enable investors to tap into these markets—especially those facing high property taxes and tenant‑friendly regulations in Cook County.

How We Ranked Illinois DSCR Lenders

Our ranking considers program transparency, minimum DSCR, maximum LTV and FICO requirements, loan amount ranges, property types allowed, closing speed, short‑term‑rental friendliness and support for first‑time investors. Lenders with Illinois expertise received extra credit.

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

1. Select Home Loans – Best Overall

Website: SelectHomeLoans.com

Phone: 888-550-3296

• About: DSCR lender offering flexible programs across the Midwest. Program features include rates 6.5–8 %, loans $75k–$2M, down payments 20 %, closing in 15–25 days. Minimum DSCR as low as 0.75 (0.5 with strong equity).
  
• Best for: Investors seeking quick closings and DSCR flexibility.
  
• Coverage: Illinois statewide (Chicago, Rockford, Peoria, Springfield, Champaign).
  
• Min DSCR: 0.75 (0.5 with equity).
  
• Max LTV: 80 %.
  
• Min FICO: 660.
  
• Loan amounts: $75k–$2M.
  
• Properties: Single‑family, 2–4 units, condos; works with Airbnb rentals.
  
• Prepayment: 3–5 years.
  
• Close time: 15–25 days.
  
• Notable features: No origination fee; DSCR below 1.0 allowed; local knowledge of Cook County taxes.

2. Longleaf Lending

• About: Veteran‑owned DSCR lender with Illinois page. Terms as of Aug 25 2025 show loan sizes $75k–$2M, LTV up to 80 %, interest rates starting 6.6 %, 30‑year terms, closing in two weeks and minimum FICO 660.
  
• Best for: Investors wanting fast closings and no‑income verification.
  
• Min DSCR: 1.0–1.2 (lower possible).
  
• Max LTV: 80 %.
  
• Min FICO: 660.
  
• Notable features: Quick term sheet; supports rentals statewide.
  

3. Visio Lending

• About: Vacation‑rental specialist; requires DSCR ≥ 1.0 and FICO ≥ 680.
  
• Coverage: Lends in Illinois; borrowers must hold property in an LLC.
  
• Notable features: Accepts AirDNA projections; 30‑year fixed and interest‑only terms; portfolio loans.
  

4. CoreVest

• About: National DSCR lender offering single‑asset loans ($67.5k–$1.4M) and portfolios up to $100M.
  
• Min DSCR: 1.20.
  
• Max LTV: 75 %.
  
• Min FICO: 620 (for portfolio lines).
  

5. Kiavi

• About: Tech‑driven lender; DSCR min 1.1, LTV 75 %, FICO 680.
  
• Coverage: Illinois.
  
• Notable features: Digital application; quick quotes.
  

6. Easy Street Capital

• About: Private lender offering DSCR loans with high LTV (85 % purchase) and min FICO 640.
  
• Coverage: Illinois.
  
• Notable features: Blanket loans up to $5M; STR friendly; interest rates from 5.5 %.
  

7. Angel Oak Capital

• About: Non‑QM lender; DSCR loans allow DSCR <1.0 and up to 85 % LTV.
  
• Notable features: 30‑/40‑year terms; interest‑only; not for first‑time investors.
  

8. Lima One Capital

• About: DSCR lender active in 46 states. Their program requires a minimum DSCR of 1.0, max LTV 80 %, loan sizes $75k–$2.5M and FICO 660.
  
• Best for: Investors wanting flexible DSCR and ARMs.
  
• Notable features: 30‑year fixed and 5/1 or 10/1 ARMs; interest rates from 6.90 %; closing in 7–10 business days.
  

Comparison Table

Lender	Min DSCR	Max LTV	Min FICO	Typical rate range*	Program highlights	Link
Select Home Loans	0.75 (0.5 w/ equity)	80 %	660	6.5–8 %	Fast closings; DSCR below 1; no origination fee	Select
Longleaf Lending	1.0–1.2	80 %	660	from 6.6 %	2‑week closing; no income docs	Longleaf
Visio Lending	1.0	80 % (70 % cash‑out)	680	6.5–9 %	STR underwriting; LLC required	Visio
CoreVest	1.20	75 %	620	5.5–8 %	Large portfolios & single‑asset loans	CoreVest
Kiavi	1.1	75 %	680	6.5–8.5 %	Digital application; 30‑yr fixed/ARM	Kiavi
Easy Street	~1.0	85 %	640	5.5–8 %	High LTV; blanket loans	Easy Street
Angel Oak	<1.0 allowed	85 %	680	6.5–9 %	No‑ratio DSCR; 40‑yr terms	Angel Oak
Lima One	1.0	80 %	660	6.9–8.5 %	5/1 & 10/1 ARMs; 7–10‑day closing	Lima One

*Rates vary by borrower profile; ranges are illustrative.

Illinois DSCR Guide

DSCR Formula

DSCR = NOI ÷ Debt Service. NOI is gross rent minus operating expenses (taxes, insurance, maintenance). Lenders typically require DSCR ≥ 1.0–1.2; some (Select) will go lower with strong equity.

Example Calculation Using Illinois Rents

• Property: Three‑flat in Chicago’s Bridgeport neighborhood generating $4,800/month ($57,600 annually).
  
• Expenses: Property taxes $8,500 (Cook County), insurance $1,800, maintenance $3,000 → total $13,300.
  
• NOI: $57,600 – $13,300 = $44,300.
  
• Loan: DSCR mortgage of $400,000 at 6.8 % (annual debt service $31,600).
  
• DSCR: $44,300 ÷ $31,600 ≈ 1.40, comfortably above lender thresholds.
  

Local Investor Considerations

• Chicago: The state’s economic engine with strong demand for both luxury and workforce housing. Chicago’s median home price is around $385k; rent yields typically range 4–6 %. High property taxes and tenant‑friendly ordinances (security‑deposit rules, eviction timelines) can impact cash flow. Investors often seek DSCR loans for two‑ to four‑flats in neighborhoods like Bridgeport, Avondale and Pilsen. Avoid over‑leveraging in markets where inventory and rent growth may stagnate.
  
• Aurora & Naperville: Growing suburbs west of Chicago with steady job growth. Building permits increased 8 % in 2024, adding new single‑family and multifamily inventory. Median rents are lower (~$2,000) but vacancy is low.
  
• Rockford & Peoria: More affordable markets where home prices are below $200k and cap rates can exceed 7 %. DSCR loans can help investors purchase duplexes or small apartments; be mindful of older housing stock requiring repairs.
  
• Springfield & Champaign: The capital and a university town (University of Illinois) offer stable rental demand. However, population growth is slower; choose properties near government buildings or campuses for steady cash flow.
  

Qualification Checklist

• Credit score: Aim for 660+; some lenders require 680.
  
• Reserves: 3–6 months of PITI; more may be needed for Cook County taxes.
  
• Appraisal: Full appraisal with rent schedule (Form 1007).
  
• Entity: Many lenders require property be held in an LLC.
  
• Lease/market rent: Provide signed leases or comparable market rents.
  
• Insurance & Taxes: Budget for high property taxes and consider umbrella insurance.
  
• Tenant laws: Understand Chicago’s Residential Landlord and Tenant Ordinance (RLTO) and state eviction rules; DSCR lenders may require professional property management.
  

Rates & Terms Snapshot

Illinois DSCR rates mid‑2025 range 6.5 % to 8.5 %. Loan amounts typically $75k–$2M; down payments 20 %, though lenders offering up to 85 % LTV require FICO ≥ 720. Prepayment penalties of 3–5 years are standard. Lenders may adjust rates upward to account for Illinois property taxes and tenant laws.

Illinois DSCR FAQs

1. What DSCR do lenders require? Most require DSCR ≥ 1.0–1.2, but Select Home Loans will consider 0.75 with strong equity.
   
2. Can I finance a 3‑ or 4‑flat? Yes. DSCR lenders finance up to four units; CoreVest and Lima One also provide portfolio loans for more units.
   
3. Are DSCR loans available for condos? Yes. Lenders like Select, Longleaf, Visio and NewFi finance condos; note HOA rules and budget for assessments.
   
4. How do property taxes affect DSCR? High taxes in Cook County increase operating expenses and lower DSCR. Lenders factor taxes into underwriting; investors may need higher rents or larger down payments.
   
5. Do DSCR lenders allow STRs? Some do (Select, Visio, New Silver) if local ordinances permit. Chicago has strict vacation‑rental licensing; ensure compliance.
   
6. How quickly can DSCR loans close? Select closes in 15–25 days; Longleaf in 2 weeks; others require up to 5 weeks.
   
7. Do lenders verify personal income? DSCR loans rely on property income and credit; personal tax returns are generally not required.
   

Call to Action

Navigating Illinois’ complex rental landscape requires a flexible, knowledgeable lender. Select Home Loans offers fast closings, competitive rates and DSCR flexibility that can turn your Chicago three‑flat or Peoria duplex into a cash‑flowing investment. Apply for a free quote today.