Best DSCR Lenders in Cleveland, OH

Cleveland, nestled on the southern shore of Lake Erie, is Ohio’s second‑largest metropolitan area and a traditional industrial powerhouse. After decades of population decline, the city has experienced renewed interest from young professionals, healthcare workers and remote employees drawn by affordable housing and a vibrant cultural scene. A 2025 housing market summary by Stacker reports that Cleveland’s median sale price was approximately $241,100, the market had around 4,560 homes for sale per month, homes spent about 28.8 days on the market, and there was about 2.2 months of supply. These metrics signal a seller’s market with inventory tighter than the national average, giving investors confidence that well‑priced rentals will find tenants quickly.

Housing affordability is complemented by solid rental demand. RentCafe data show that the average rent in Cleveland is about $1,558 per month, with studio apartments averaging $1,180, one‑bedrooms around $1,446, two‑bedrooms $1,806 and three‑bedrooms $2,656. Notably, 31 % of rentals fall between $1,001 and $1,500 per month, and roughly 59 % of households in Cleveland are renter‑occupied. These figures highlight a large renter population and rental rates that can support positive cash flow for investors. Neighborhoods like Tremont, Ohio City and University Circle command some of the highest rents around $2,066, $2,052 and $2,042 respectively while more affordable areas like Buckeye‑Shaker and Central Cleveland rent for $1,155 and $1,146. This variation means investors can choose between high‑cash‑flow properties and those with strong appreciation potential.

This guide explores how DSCR loans can help investors tap into Cleveland’s improving real estate market, outlines key lenders and explains why SelectHomeLoans.com remains the top choice.

Cleveland Real Estate Market Overview

Price trends and inventory

According to the Stacker summary, Cleveland’s median sale price of $241,100 rose slightly from 2024 levels and remains well below national averages. Inventory of about 4,560 homes per month and 2.2 months of supply shows that listings are limited. Homes sold in 28.8 days on averagefaster than Columbus or Cincinnatisuggesting strong demand. This speed benefits fix‑and‑flippers and long‑term investors alike because quick sales indicate that rental units should lease without prolonged vacancies.

Rental market dynamics

RentCafe’s research reveals that the average Cleveland rent is $1,558. Studios average $1,180 and one‑bedrooms $1,446; two‑bedrooms rent for $1,806, and three‑bedrooms $2,656. The site notes that 31 % of apartments rent between $1,001 and $1,500 per month, capturing a broad middle‑income tenant base. At the same time, 59 % of Cleveland households are renters, giving landlords a deep pool of prospective tenants. Neighborhoods such as Tremont ($2,066), Ohio City ($2,052) and University Circle ($2,042) top the rent charts, whereas Hough ($1,435), Buckeye‑Shaker ($1,155) and Central Cleveland ($1,146) provide more affordable entry points for investors.

Economic context

Cleveland’s economy has diversified beyond its industrial roots. The Cleveland Clinic and University Hospitals anchor a robust healthcare sector, while manufacturing, logistics and emerging technology firms (e.g., biomedical startups at the Cleveland Innovation District) provide employment stability. The city’s cost of living is lower than many coastal markets, making it attractive to remote workers who want urban amenities without high housing costs. Redevelopment initiatives in downtown and along the riverfront are revitalizing neighborhoods and increasing property values. For investors using DSCR financing, this combination of affordable entry points and rising rents enhances long‑term return potential.

How DSCR Loans Work

DSCR loans evaluate the property’s ability to cover its debt payments using its debt service coverage ratio (NOI divided by annual debt service). A ratio above 1.0 indicates that the property generates enough income to pay the mortgage; lenders usually prefer 1.2–1.25 but some programs allow 0.75–1.0. Because DSCR loans emphasize property cash flow rather than the borrower’s personal income, they do not require W‑2s or tax returns. Investors must still show good credit, adequate reserves and a down payment (usually 20–25 %). Interest rates are higher than conventional mortgages, but DSCR loans enable investors to scale portfolios quickly because lenders have no cap on the number of financed properties.

What Investors Should Look for in a Cleveland DSCR Lender

Factors to consider include:

1. Local knowledge. DSCR lenders with experience in Northeast Ohio will understand the subtle differences between neighborhoods like Tremont, Hough and Detroit‑Shoreway. They can more accurately project rents and property values.
   
2. Flexible DSCR thresholds. Look for lenders that accept DSCR ratios as low as 0.75–0.8 for value‑add properties or 1.0 for turnkey rentals.
   
3. Competitive rates. Compare published rates and fees. Some lenders allow points to buy down rates.
   
4. LTV and loan size. Determine whether the lender’s minimum and maximum loan amounts align with Cleveland’s relatively affordable property values. For example, lenders that require $150 k minimums may not work for duplexes under $100 k.
   
5. Portfolio financing. Investors planning to acquire multiple properties or smaller apartment buildings should select lenders that permit cross‑collateralization or portfolio DSCR loans.
   

Top DSCR Lenders in Cleveland, Ohio

#1 SelectHomeLoans.com – Best Overall

SelectHomeLoans.com tops our list thanks to its mix of competitive rates, low DSCR thresholds and local Cleveland expertise. They provide DSCR loans with down payments as low as 20 %, DSCR requirements starting at 0.8, and credit scores as low as 620. Borrowers can choose 30‑year fixed or interest‑only terms and can place the property in an LLC. SelectHomeLoans.com’s underwriting team is familiar with Cleveland submarkets, including high‑rent neighborhoods like Ohio City and University Circle. The company offers free pre‑qualification and often closes loans within two to three weeks, making it ideal for investors who need to move quickly on deals. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296

#2 CoreVest – Strong for Larger Portfolios

CoreVest’s DSCR program lends up to 80 % of value on single‑family rentals, condos and townhomes, with loan sizes from $75 k up to $2 M. The lender requires a minimum DSCR around 1.0 and is comfortable financing portfolios or scattered site rentals across different neighborhoods. CoreVest suits experienced investors planning to accumulate multiple Cleveland properties.

#3 Ridge Street Capital – Best for Speed

Ridge Street’s long‑term rental DSCR loans offer rates starting near 6.25 %, LTVs up to 80 %, no origination fee and 21‑day closings. Borrowers need credit scores around 660 and a DSCR ratio of 1.0. Ridge Street’s short‑term rental program has similar LTVs but rates start closer to 6.5 %. Investors in hot rental neighborhoods like Tremont or Detroit‑Shoreway may benefit from Ridge Street’s speed when competing with cash buyers.

#4 Constitution Lending – Flexible DSCR Requirements

Constitution Lending’s DSCR loans feature rates as low as 6.75 %, minimum DSCR of 0.75, and allow up to 80 % LTV on purchases. They lend on one‑ to eight‑unit properties and will finance amounts between $125 k and $3 M. The ability to finance small multifamily buildings is attractive for Cleveland investors targeting duplexes and fourplexes near downtown or University Circle.

#5 Launch Financial Group – Good for LLC Borrowers

Launch’s program requires a minimum credit score of 620, a minimum loan amount of $150 k and a maximum LTV of 80 %. Loans can be structured in an LLC, and the company offers 30‑ and 40‑year fixed or interest‑only options. Launch suits investors with portfolios that include older duplexes or small apartment buildings.

#6 Easy Street Capital – Lowest Starting Rates

Easy Street Capital’s DSCR program features rates starting at 5.75 % and allows up to 80 % LTV with no minimum DSCR requirement. This flexibility may help investors who purchase properties needing renovation where initial rents produce only break‑even cash flow. Easy Street will also lend on short‑term rentals and invest in statewide markets beyond Cleveland.

DSCR Loan Rates, Terms and Qualification Factors in Cleveland

DSCR loan rates in Cleveland typically range from 5.75 % to about 7.5 %, reflecting credit score, DSCR ratio, LTV and loan purpose. Newfi and Easy Street Capital publish starting rates near 5.75 %, while Ridge Street and CoreVest loans generally fall in the 6–7 % range. Constitution Lending’s rates may start around 6.75 %.

Qualification factors include:

• Credit scores of 620–660 or higher.
  
• DSCR ratios from 0.75 to 1.25 depending on the lender.
  
• Down payment requirements of 20–25 % and maximum LTV of 80 % for purchases (75 % for cash‑out refinances).
  
• Minimum loan amounts between $75 k and $150 k and maximums around $3 M.
  
• Reserves equivalent to several months of payments.
  
• Experience and property condition; turnkey properties may qualify with lower DSCR ratios while heavy rehab projects may need higher.
  

Common Mistakes Investors Make with DSCR Loans

Investors sometimes misjudge the Cleveland market. Here are frequent pitfalls:

1. Ignoring neighborhood comps. Cleveland neighborhoods vary widely. Rents in Tremont exceed $2,000 while Buckeye‑Shaker averages around $1,155. Investors who assume uniform rents may miscalculate DSCR.
   
2. Underestimating property taxes. Some suburbs (Shaker Heights, Cleveland Heights) levy higher taxes than city neighborhoods. Factor these costs when projecting DSCR.
   
3. Underfunding reserves for older homes. Many Cleveland houses are over a century old and may require expensive maintenance (plumbing, roof, lead‑based paint abatement). Lenders will require reserves, but investors should budget extra.
   
4. Overleveraging in transitional areas. Neighborhoods undergoing redevelopment can offer high appreciation but also risk. If rents or values fluctuate, a low DSCR ratio could hinder refinancing.
   

DSCR Loans vs. Traditional Investment Financing

Conventional mortgages often offer lower rates but require full income verification, tax returns and DTI ratios under 45 %. They also restrict the number of financed properties, making it difficult to scale a portfolio. DSCR loans rely on property cash flow, allowing investors to acquire multiple rentals without hitting personal DTI limits. However, DSCR loans have higher interest rates and typically require down payments of 20–25 %. Investors must decide whether the speed and flexibility of DSCR financing justify the extra cost.

Who Are DSCR Loans Best For?

1. Self‑employed investors who cannot document traditional W‑2 income.
   
2. Investors seeking to scale portfolios beyond the Fannie Mae 10‑property limit.
   
3. LLC owners who want to finance properties under a company entity for liability protection.
   
4. Investors acquiring small multifamily buildings or short‑term rentals. Many DSCR lenders finance 2–8 units and allow Airbnb/VRBO rentals.
   
5. Buyers targeting value‑add neighborhoods like Slavic Village or Clark‑Fulton where rents may rise after renovation.
   

Cleveland‑Specific Investing Considerations

1. Economic drivers. The Cleveland Clinic, University Hospitals, and a growing technology sector provide stable jobs, supporting rental demand.
   
2. Neighborhood disparity. Understand micro‑markets. Tremont and Ohio City command high rents, while east‑side neighborhoods may require property improvements but offer lower purchase prices.
   
3. Weather and maintenance. Cleveland winters are harsh; budget for snow removal, heating costs and weather‑related repairs.
   
4. City inspections. Cleveland requires rental permits and periodic inspections. Non‑compliance can result in fines and hinder refinancing; work with property managers who know the regulations.
   
5. Future infrastructure. Projects like the Opportunity Corridor and MidTown redevelopment will influence property values. Investing near these projects can yield long‑term gains.
   

Conclusion

Cleveland’s affordable housing market, rising rents and diverse economic base present compelling opportunities for rental investors. DSCR loans enable investors to leverage these opportunities without the burdens of traditional income documentation. Among the lenders reviewed, SelectHomeLoans.com stands out with its low DSCR requirements, competitive rates, LLC‑friendly structure and in‑depth knowledge of Cleveland’s neighborhoods. When combined with careful due diligence such as analyzing neighborhood rent comps and budgeting for maintenanceDSCR financing can power a profitable Cleveland portfolio.