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

Missouri’s real estate market offers a mix of urban and suburban opportunities in cities like St. Louis, Kansas City, Springfield, Columbia and Jefferson City. Population growth in Missouri’s major metros is projected to be strong, with Kansas City expected to grow 6 % and St. Louis 5 % through 2025. Meanwhile, the state’s overall fair‑market rent is $1,059, ranking Missouri as the 4th lowest rent state. The average rent for two‑bedroom units is $1,291, while studio apartments rent around $782. These relatively low rents mean investors must pay close attention to cash flow and DSCR calculations when borrowing. DSCR loans allow investors to qualify based on property income rather than personal income, which can be essential for self‑employed borrowers or those scaling portfolios. This comprehensive guide ranks the top DSCR lenders in Missouri, outlines the DSCR formula, and discusses local considerations for investors.

How we evaluated lenders

We compared DSCR lenders on program transparency (minimum DSCR, LTV, credit score requirements), willingness to finance properties across Missouri (urban and rural), and flexibility regarding property type and borrower experience. We also evaluated interest rates, origination fees, closing speed and prepayment penalties. Because Missouri includes diverse markets—affluent suburbs, urban cores and college towns—we favoured lenders who support a broad range of property types (from single‑family homes to 4‑unit rentals and mixed‑use buildings) and allow short‑term rentals in tourist areas like Branson and the Lake of the Ozarks.

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

Select Home Loans

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

Why #1. Select Home Loans stands out because of its adaptability to Missouri’s varied markets. SHL funds single‑family homes in suburban St. Louis, duplexes near the University of Missouri in Columbia and vacation rentals at Lake of the Ozarks. They consider DSCRs below 1.0 for experienced investors or those with strong reserves and often close within three weeks. SHL does not require personal income documentation, making it ideal for self‑employed borrowers. Investors value SHL’s local expertise and willingness to finance properties under $150,000, common in the central and southern regions.

Longleaf Lending

Longleaf Lending offers DSCR loans with loan values of $75k–$2M, LTVs up to 80 %, interest rates starting at 6.6 %, minimum FICO 660, and closing as fast as two weeks. They typically require DSCR >1.0–1.2, but may be flexible for strong borrowers. Longleaf does not require personal income verification and targets investors seeking quick funding. They lend across Missouri, including both large metros and smaller cities.

New Silver

New Silver’s DSCR program in Missouri offers interest rates starting around 5.875 %, LTVs up to 80 %, loan amounts $150k–$3M, minimum DSCR 0.75 and minimum FICO 660. Down payments of 20 % are typical. New Silver finances long‑term rentals and short‑term vacation properties, including in Branson and the Ozark Lake area. Their digital platform accelerates approvals.

CoreVest

CoreVest provides 30‑year DSCR loans for Missouri investors with minimum DSCR around 1.0 and LTV up to 80 %. Loan amounts start at $75,000, and CoreVest accepts credit scores above 650. They offer single‑asset and portfolio loans, making them suitable for investors with larger holdings in St. Louis or Kansas City. Closing usually takes about 30–45 days.

Kiavi

Kiavi offers DSCR loans up to 80 % LTV and requires DSCRs that at least cover the monthly payment. Minimum FICO scores are around 680, and the lender’s digital process speeds up underwriting. Kiavi finances properties throughout Missouri but may require additional reserves for small towns with limited comparable sales.

LBC Mortgage

LBC Mortgage delivers DSCR loans in Missouri with minimum DSCR 0.75, 20 % down payment, credit score 620+ and minimum loan of $200,000. Many properties in central and rural Missouri are priced below this threshold, so LBC may be best for higher‑priced markets like St. Louis County or Johnson County. LBC’s focus on property income rather than borrower income is appealing to self‑employed investors.

RCN Capital

RCN Capital serves Missouri with long‑term rental loans requiring DSCRs around 1.0 and offering LTVs up to 80 %. They finance single‑family homes, small multifamily, non‑warrantable condos and some mixed‑use properties. RCN’s prepayment penalties can be bought down, making them attractive for investors planning to refinance or sell within a few years.

Angel Oak

Angel Oak offers DSCR loans with ratios down to 0.75 and LTVs up to 85 % for higher credit scores. They lend up to $3 million and allow interest‑only terms. Angel Oak can fund properties in tourist areas like Branson and Columbia but may require higher DSCR or reserves for first‑time investors.

DSCR formula and example

DSCR is calculated by dividing monthly rental income by monthly fixed expenses (PITIA). Suppose a duplex in Kansas City rents for $2,400 per month ($1,200 per unit), and the mortgage, taxes, insurance and HOA total $2,000 per month. DSCR = 2,400 ÷ 2,000 = 1.20, indicating positive cash flow. Lenders like SHL and CoreVest would likely approve. Conversely, if monthly expenses were $2,400 and rent $2,400, DSCR is 1.0; lenders might still approve but with higher rates or lower LTV.

Local investor considerations

Market overview

Missouri offers diverse markets. Kansas City and St. Louis are experiencing population growth of about 6 % and 5 %, respectively, by 2025, fueling demand for housing. The average fair‑market rent statewide is $1,059, with two‑bedroom units at $1,291 and studios at $782. Suburban counties like Clay and St. Charles offer good rental yields due to lower property prices and steady demand. Columbia and Springfield have strong rental demand from university students, but turnover can be seasonal. Investors should monitor job growth, population trends and landlord‑tenant regulations, which differ between cities (e.g., St. Louis City vs. St. Louis County). Missouri’s housing stock ranges from century‑old brick townhouses to newer suburban builds; older homes may require more maintenance, affecting DSCR.

Short‑term rentals and tourism

Tourist destinations such as Branson, Lake of the Ozarks and Hermann support STRs. Regulations vary; Branson requires a special use permit and collects local taxes, while the Lake of the Ozarks area has looser rules. Many DSCR lenders underwrite to long‑term market rents rather than projected nightly income. Investors should check municipal codes and talk with lenders about STR eligibility. Insurance costs may be higher for lakeside cabins and vacation homes, which reduces DSCR.

Property types and economic factors

Missouri’s property types include single‑family homes, small multifamily buildings, historic rowhouses, and condos. Some rural lenders will finance manufactured homes permanently affixed to land, though many DSCR lenders avoid them. Property taxes are moderate compared with coastal states, helping cash flow. Insurance costs vary; tornado and wind coverage may be necessary in certain areas. The state economy benefits from manufacturing, logistics (Interstate 70 corridor) and healthcare, supporting job growth in major metros.

Qualification checklist

• Credit score: Most lenders require 620–680+. Higher scores yield better rates.
  
• Down payment: 20 % is standard; investors with DSCRs well above 1.0 may negotiate higher LTV.
  
• DSCR calculation: Provide leases or rely on the 1007 market rent schedule. Lenders prefer DSCR ≥1.0 but some accept 0.75.
  
• Reserves: Typically 3–12 months of PITIA. Some lenders may reduce reserves for high DSCR and strong credit.
  
• Property appraisal: Must include a rent comparables analysis; unique property types (historic homes) may require specialist appraisers.
  
• Entity documentation: Many lenders want LLC or corporate ownership; prepare operating agreements and articles.
  
• Insurance: Hazard and, where applicable, flood/tornado coverage; DSCR may decline if insurance costs rise.
  

Rates and terms snapshot (subject to change)

DSCR loan rates in Missouri begin around 5.9 % and range into the 8 % level. Origination fees often fall between 1–3 %. Longleaf and New Silver can close loans in two weeks, while CoreVest and SHL may require 30–45 days. Prepayment penalties vary; many lenders employ a 3/2/1 step‑down, although Longleaf and some Angel Oak products offer no‑penalty options. Because Missouri’s rents are lower than in coastal states, ensure the property’s rent comfortably covers the mortgage at the rate offered.

Frequently asked questions (FAQs)

1) What DSCR ratio do Missouri lenders require? Most lenders require a DSCR of 1.0–1.25; New Silver may accept 0.75, but higher ratios result in better terms. Longleaf expects DSCR >1.0–1.2.

2) Are DSCR loans available for 2–4 unit properties? Yes. Lenders like SHL, Longleaf, CoreVest, and RCN finance small multifamily buildings. DSCR is calculated on the aggregate rent and expenses.

3) Can I use DSCR loans for short‑term rentals in Branson? Many lenders allow short‑term rentals, but underwriting is usually based on long‑term market rent. Check local STR regulations and confirm with the lender.

4) How fast can DSCR loans close? Longleaf and New Silver may close in two weeks; others, like CoreVest, SHL and RCN, typically close in 30–45 days. Appraisal availability can be a bottleneck.

5) What is the minimum loan amount? It varies. New Silver’s minimum is $150k, CoreVest’s is $75k, and LBC’s is $200k. SHL may lend on smaller amounts, making it useful for central Missouri deals.

6) Do DSCR loans finance condos? Yes. Many lenders, including Visio and RCN, finance condos, though non‑warrantable condos may require lower LTV or additional reserves.

7) Do DSCR loans have prepayment penalties? Often yes. A common penalty structure is 3/2/1. Some lenders, like Longleaf and certain Angel Oak products, may offer no‑penalty options for a fee or higher rate.

Conclusion and call to action

Missouri’s blend of affordable housing and growing metros offers attractive opportunities for real estate investors. DSCR loans enable borrowers—especially self‑employed individuals and those building portfolios—to qualify based on property income. Select Home Loans ranks #1 for its flexibility and willingness to finance properties across Missouri’s diverse markets. Longleaf Lending, New Silver, CoreVest and others provide competitive alternatives. As you evaluate options, pay attention to DSCR requirements, closing timelines and prepayment penalties. Always verify local regulations—particularly for short‑term rentals—and consult professionals for property inspections and appraisals. With due diligence, DSCR financing can help you capitalize on Missouri’s growth in 2025 and beyond.