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

Mississippi’s rental market is characterized by affordable housing and modest rent growth. As of 2025, the overall average fair‑market rent in the state is $1,159, with studio apartments around $907 and three‑bedroom units averaging $1,571. These rents rank Mississippi as the 4th lowest rent state in the U.S.. Despite lower absolute rents, demand is strong in college towns like Oxford, Starkville and Hattiesburg, as well as cities such as Jackson and Gulfport. Because conventional mortgages often require W‑2 income and tax returns, investors and self‑employed entrepreneurs are turning to DSCR loans that qualify them based on the income of the property itself. This comprehensive guide explains DSCR lending, ranks the leading lenders in Mississippi with Select Home Loans at the top, and provides local market insight to help investors succeed.

How we evaluated lenders

We assessed DSCR lenders on criteria including minimum DSCR, maximum LTV, credit score requirements, loan size range, interest rates, closing speed and eligibility for property types common in Mississippi. We favoured lenders that publish clear guidelines and serve small towns as well as metro areas. Because Mississippi has many older homes and rural properties, we looked for lenders willing to finance properties needing renovation or located in less densely populated counties. Our evaluation also considered whether lenders allow short‑term rentals, as the Gulf Coast hosts tourism but local zoning can restrict STRs.

Top DSCR lenders in Mississippi (Select Home Loans #1)

Select Home Loans

Website: SelectHomeLoans.com
Phone: 888-550-3296

Why #1. Select Home Loans secures the #1 ranking due to its flexible approach and willingness to work with smaller deals typical in Mississippi. SHL can fund single‑family homes and duplexes with loan amounts under $200,000—common for properties in Jackson or Hattiesburg—and will consider DSCRs below 1.0 if investors have strong reserves or multiple properties. SHL supports both long‑term rentals and Airbnb‑style properties on the Gulf Coast, provided local regulations are met. Their underwriting typically closes within three weeks and does not require W‑2 or tax returns. Because of these features, SHL is ideal for first‑time investors or self‑employed borrowers.

Longleaf Lending

Longleaf Lending’s DSCR program is a strong fit for Mississippi investors. The company emphasises a simple qualification process based on property cash flow: DSCR is calculated by dividing net operating income by annual debt payments. Longleaf typically requires DSCR greater than 1.0–1.2, but exceptions are possible. Their long‑term rental loans feature loan amounts from $75 k to $2 M, LTV up to 80 %, interest rates starting at 6.6 % and closing as fast as two weeks. A minimum FICO score of 660 is needed, and no personal income documentation is required. Longleaf’s willingness to finance properties in smaller markets makes them a top choice.

New Silver

New Silver provides DSCR loans in Mississippi with interest rates starting at about 5.875 %, LTVs up to 80 %, loan amounts from $150k to $3M and minimum DSCR 0.75. The lender accepts FICO scores as low as 660 and requires down payments of around 20 %. New Silver allows both long‑term rentals and vacation rentals, which is beneficial for investors in Gulfport–Biloxi. Automated valuation models may speed up underwriting.

LBC Mortgage

LBC Mortgage offers DSCR loans to Mississippi investors with minimum DSCR 0.75, 20 % down payment, credit score 620+ and loans starting at $200,000. Because many Mississippi properties are priced below this threshold, LBC may be best for investors acquiring larger portfolios or higher‑value units along the coast or near universities. LBC’s simplified documentation process focuses on property cash flow rather than borrower income.

RCN Capital

RCN Capital serves Mississippi with 30‑year fixed and adjustable‑rate DSCR loans requiring DSCR around 1.0, LTVs up to 80 % and credit scores around 660. RCN finances single‑family rentals, duplexes, small multifamily, and non‑warrantable condos. Prepayment penalties may apply but can sometimes be bought down. RCN’s experience with out‑of‑state investors makes it a reliable option for those investing from afar in markets like Jackson or Biloxi.

Angel Oak

Angel Oak’s Investor Cash‑Flow program offers flexibility with DSCR ratios as low as 0.75 and LTVs up to 85 % for high credit scores. They finance properties up to $3 million and allow interest‑only periods. However, new investors may face higher DSCR requirements, and prepayment penalties often apply. Angel Oak can be a good fit for experienced investors acquiring larger properties in university towns like Starkville or Oxford.

Kiavi

Kiavi’s digital platform provides DSCR loans up to 80 % LTV with DSCR requirements that at least cover monthly payments. Minimum FICO scores are around 680. Kiavi lends in many Mississippi markets, though investors should verify coverage in smaller towns. With quick online applications and straightforward underwriting, Kiavi appeals to investors comfortable with technology.

CoreVest

CoreVest offers DSCR loans in Mississippi with minimum DSCR around 1.0 and LTV up to 80 %. Loan amounts start at $75,000, and the lender accepts FICO scores above 650. CoreVest supports single‑asset and portfolio loans and may combine DSCR loans with bridge financing for larger repositioning strategies. Closing takes about 30–45 days.

DSCR formula and example

Lenders determine DSCR by dividing a property’s monthly rental income by its monthly mortgage obligations (PITIA). Fixed expenses include principal, interest, taxes, insurance and HOA dues. For example, a three‑bedroom single‑family home in Jackson rents for $1,500 per month while PITIA totals $1,200. DSCR = 1,500 ÷ 1,200 = 1.25, which exceeds the typical minimum. If the mortgage payment were $1,600, DSCR would drop to 0.94, and the borrower might need a larger down payment or a co‑borrower to qualify.

Local investor considerations

Market trends

Mississippi has some of the lowest home prices and rents in the nation. The statewide average fair‑market rent is $1,159, meaning investors often need smaller loan amounts. College towns like Oxford (home to the University of Mississippi) and Starkville (Mississippi State University) offer steady rental demand, particularly during the academic year. The Gulf Coast—especially Biloxi and Gulfport—attracts tourism, creating opportunities for short‑term rentals; however, local ordinances may restrict unhosted rentals, and hurricane risk necessitates wind and flood insurance.

Property types and rural considerations

Investors in Mississippi can choose from single‑family homes, duplexes, small multifamily buildings, and manufactured homes. DSCR lenders typically avoid mobile homes not permanently affixed to land and may require higher down payments for properties built before 1978 due to potential lead‑based paint remediation. Rural properties often appraise lower due to fewer comparable sales; investors may need to provide more down payment or pursue bridge financing before refinancing into a DSCR loan. Because of Mississippi’s humid climate, property inspections should check for mold, pest damage and structural issues.

Economic environment

Mississippi’s economy relies on agriculture, manufacturing and a growing health‑care sector. Job growth is moderate, and population growth is slower than the national average, but stable employment in university towns and coastal tourism ensures rental demand. Property taxes are relatively low compared with other states, improving cash flow. Insurance costs, however, can be significant along the Gulf Coast due to hurricane exposure, which increases PITIA and lowers DSCR.

Qualification checklist

• Credit score: Lenders generally require at least 620–660; higher scores secure better pricing.
  
• Down payment: 20 % is standard, though some lenders may accept less with higher DSCRs.
  
• Loan size: Many lenders have minimums ($50–200 k) and maximums ($2–3 M).
  
• DSCR calculation: Provide leases or rely on the 1007 rent schedule; DSCR ≥1.0 is typical, but some lenders allow lower ratios.
  
• Reserves: 3–12 months of PITIA; lower rents may reduce required reserves.
  
• Property appraisal: Must include market rent analysis; rural appraisals may take longer.
  
• Insurance: Hazard insurance; wind and flood insurance for coastal properties.
  

Rates and terms snapshot (subject to change)

DSCR loans in Mississippi typically carry interest rates starting near 5.9 % and rising above 8 % for riskier scenarios. Origination fees average 1–3 % of the loan amount. Longleaf and New Silver advertise quick closing times (two weeks), whereas larger lenders may take 30–45 days. Prepayment penalties differ by lender: Longleaf and some Angel Oak products allow no‑penalty options, while others require step‑down penalties. Because Mississippi rents are lower, investors should ensure monthly cash flow can support DSCR calculations even if interest rates increase.

Frequently asked questions (FAQs)

1) What DSCR ratio do lenders require in Mississippi? Most lenders require DSCRs around 1.0–1.25; Longleaf often needs DSCR >1.0–1.2, while New Silver and Angel Oak may accept 0.75 for strong borrowers.

2) Can DSCR loans finance mobile or manufactured homes? Many DSCR lenders avoid mobile homes, but some will consider manufactured homes permanently affixed to land. Check with lenders like SHL or RCN for specific guidelines.

3) How quickly can I close a DSCR loan? Longleaf and New Silver advertise closings as fast as two weeks. Others may require 30–45 days, especially in rural areas where appraiser availability is limited.

4) Do lenders allow short‑term rentals on the Gulf Coast? Some do. SHL and New Silver permit Airbnb‑style rentals, but underwriting often uses long‑term market rent. Investors must comply with local licensing and taxation.

5) What if my property’s DSCR is below 1.0? Lenders may ask for a larger down payment, lower LTV or additional reserves. Some, like SHL, will still consider the loan if other compensating factors exist.

6) Do DSCR loans have prepayment penalties? Many do. Longleaf offers no‑penalty options, while others apply a 3–5 year step‑down penalty. Confirm with each lender.

7) Can I refinance into a DSCR loan? Yes. Investors can refinance existing mortgages or bridge loans once the property stabilises. Cash‑out refinances may have lower LTV limits.

Conclusion and call to action

Mississippi offers affordable entry points for rental investors, but qualifying for conventional mortgages can be challenging for self‑employed borrowers. DSCR loans provide an alternative by focusing on property cash flow. Among the lenders reviewed, Select Home Loans leads due to its flexibility, willingness to fund smaller deals and support for both long‑term rentals and vacation properties. Longleaf Lending, New Silver and LBC Mortgage offer strong programs for investors with varying credit profiles and property values. Compare multiple lenders to find the best fit, pay attention to insurance costs along the Gulf Coast, and consult local professionals to ensure compliance with zoning and landlord‑tenant laws. With careful planning, DSCR financing can unlock cash‑flow opportunities across the Magnolia State.