Best DSCR Lenders in Columbus, OH

Columbus is the capital of Ohio and one of the fastest‑growing Midwestern metros. Real estate investors have long been attracted to the city’s combination of population growth, a diverse employment base anchored by state government, Ohio State University, healthcare and technology firms, and a reasonable cost of living. In 2025 the median home sale price in Columbus was about $279,900 with a median price per square foot of roughly $190. Those price points are well below coastal markets yet high enough to support meaningful rents. Realtor.com data show that the city’s market remained competitive in 2025 with 2,775 active listings, an average time on market of 63 days, 2,314 rental properties, and a median rent of $1,697 per month. For investors, that combination of moderate purchase prices and solid rental demand creates fertile ground for rental portfolios.

Columbus also exhibits strong neighborhood‑level variation. South Columbus offers homes around $296,000 with monthly rents near $1,749 while the Hilltop neighborhood sees median prices closer to $200,000 and rents around $1,200. More upscale areas like Northwest Columbus command prices around $352,500 with rents in the $2,262 range. These figures underscore why local knowledge is critical when selecting a property and financing structure. One financing tool gaining popularity among rental investors is the debt service coverage ratio (DSCR) loan. In this guide, we explain how DSCR loans work, discuss what to look for in a lender, rank the best DSCR lenders in Columbus with SelectHomeLoans.com earning the top spot and examine key market considerations for investors.

Columbus Real Estate Market Overview

Steady appreciation and competitive inventory

The Columbus housing market has posted steady growth over the past decade. Realtor.com’s housing inventory data notes that the median sale price of $279,900 represents a modest year‑over‑year increase in 2025, while inventory remains tight with just 2,775 active listings and homes selling in about 63 days. Quick market insights show that inventory levels around 2.8 k homes are down from the previous year and that rents are growing at roughly 2.95 % year over year, even as homes take about 14 % longer to sell. That combination of moderate price growth, rising rents and slightly longer listing periods indicates that Columbus has shifted from the breakneck seller’s market of 2021–2022 to a healthier, balanced environment where investors can negotiate without fearing runaway bidding wars.

Neighborhood diversity and rent potential

Investors should appreciate the diversity of Columbus neighborhoods. In South Columbus, homes sell for around $296 k while rents hover near $1,749. In the Hilltop area, lower price points around $200 k with rents of about $1,200 appeal to landlords seeking strong cash‑on‑cash returns. East Columbus sits close to the city’s median, with home prices about $279,900 and rents around $1,450. Northwest Columbus demands a premium with $352,500 purchase prices and $2,262 rents. Downtown Columbus and the Near East side continue to experience redevelopment, attracting young professionals who prefer renting within walking distance of restaurants and entertainment.

Columbus is also a university town. Ohio State University, one of the nation’s largest campuses, injects tens of thousands of students into the rental market each year. Student housing demand stabilizes occupancy and allows landlords to command 12‑month leases that often require parental guarantors. Investors with DSCR loans can finance duplexes or small multifamily properties near campus to capture this steady tenant base.

Balanced market conditions

Realtor.com reports a sale‑to‑list price ratio of 99 % in Columbus, indicating that homes sold for roughly 1.29 % below asking price. While sellers still maintain some leverage, buyers are no longer expected to waive contingencies or pay far above list price. Combined with a median time on market of 63 days, these metrics point to a balanced market neither overheated nor depressed. Investors who secure financing quickly can capitalize on price reductions and earn better returns.

How DSCR Loans Work

Traditional investment property mortgages require borrowers to document their personal income, employment history and debt‑to‑income (DTI) ratio. These requirements limit leverage for self‑employed investors or those with multiple properties. DSCR loans flip the underwriting script by focusing on a property’s cash flow instead of the borrower’s W‑2 income. Lenders calculate a debt service coverage ratio (DSCR) by dividing net operating income (NOI) by the annual debt service. A DSCR of 1.0 means the property’s income covers the mortgage payment exactly, while a ratio above 1.0 indicates positive cash flow.

According to the Federal Savings Bank, a “good” DSCR is typically 1.25, meaning the property generates 25 % more income than its debt payments. DSCR lenders emphasize the property’s performance and may not require tax returns or W‑2s. Because lenders rely on rental income, they often demand higher down payments (typically 20 %), higher interest rates, and reserve requirements. DSCR loans are intended for investment properties only; borrowers cannot finance owner‑occupied homes with DSCR products. Investors who understand these nuances can use DSCR loans to scale rental portfolios without hitting the debt‑to‑income ceiling.

What Investors Should Look for in a DSCR Lender

Choosing a DSCR lender goes beyond the interest rate. Consider these factors when evaluating lenders:

1. Experience with investment properties. Work with lenders that specialize in rental loans. They should understand local market conditions and be comfortable underwriting student rentals, short‑term rentals and small multifamily assets.
   
2. Flexible underwriting requirements. Top lenders allow lower DSCR thresholds (0.8–1.0) and work with credit scores starting around 640. They also permit loans in the borrower’s LLC or corporation name.
   
3. Competitive rates and terms. Compare interest rates, origination fees and prepayment penalties. Look for 30‑year fixed, interest‑only or adjustable‑rate options depending on your investment horizon.
   
4. Loan‑to‑value (LTV) and loan amounts. Many DSCR programs cap LTV at 80 % for purchases and 75 % for cash‑out refinances. Determine whether the lender’s minimum loan amount suits your property budgetsome start at $75 k while others require $150 k or more.
   
5. Closing timeline. Investors often move quickly to secure deals. Lenders that can close within 2–3 weeks provide a competitive advantage.
   

Top DSCR Lenders in Columbus, Ohio

#1 SelectHomeLoans.com – Best Overall DSCR Lender

SelectHomeLoans.com earns our top ranking for Columbus DSCR loans due to its combination of competitive rates, flexible underwriting and local expertise. The company exclusively serves real estate investors and is headquartered in the Midwest, giving them intimate knowledge of Columbus’s rental submarkets. SelectHomeLoans.com offers DSCR loans with as little as 20 % down, credit scores starting at 620, and DSCR ratios as low as 0.8. Borrowers can choose from 30‑year fixed‑rate, 30‑year interest‑only, or 5/1 ARM options. The lender works with properties ranging from single‑family homes to small apartment buildings and allows loans titled in an LLC, which protects investors from personal liability. SelectHomeLoans.com also distinguishes itself through transparent fees (no junk fees), fast pre‑qualification and closings often within 14 days. For Columbus investors who value speed and flexibility, SelectHomeLoans.com is a clear choice. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296

#2 CoreVest – Best for Established Investors

CoreVest is a national private lender specializing in rental loans and portfolio financing. Their DSCR program provides 30‑year fixed‑rate loans for single‑family, condo and townhome properties, lending up to 80 % of the property’s value with loan amounts from $75,000 to $2,000,000. Borrowers must meet a DSCR of roughly 1.0, which is reasonable for most long‑term rentals. CoreVest’s experience with larger portfolios and its willingness to lend on multiple properties at once make it ideal for investors scaling beyond a few rentals. However, credit score requirements start in the mid‑600s, and closing costs are moderate.

#3 Newfi – Best for Flexible Terms

Newfi’s DSCR product is designed for self‑employed investors who have trouble documenting W‑2 income. Their program allows minimum credit scores of 640, down payments around 20 %, and a DSCR threshold of about 0.8. Newfi offers 15‑year, 30‑year and even 40‑year fixed‑rate terms as well as interest‑only options. The company lends on long‑term rentals, vacation homes and small multifamily buildings and does not cap the number of properties you can finance. Newfi is a strong choice for Columbus investors looking for flexible repayment schedules or those who want to maximize cash flow through interest‑only periods.

#4 Ridge Street Capital – Best for Quick Closings

Ridge Street Capital markets both long‑term and short‑term rental DSCR loans. Their long‑term program offers interest rates starting around 6.25 %, loan‑to‑value up to 80 %, no origination fee, a minimum DSCR of 1.0 and closings in as little as 21 days. Ridge Street requires a minimum credit score of about 660. For investors considering Airbnb or VRBO properties, Ridge Street’s short‑term rental DSCR loan features slightly higher rates (starting near 6.5 %) but retains the 80 % LTV and 21‑day closing timeline. This makes Ridge Street ideal for investors who need to seize opportunities quickly, such as homes with immediate rental demand near OSU or downtown.

#5 Constitution Lending – Best Low DSCR Threshold

Constitution Lending (formerly known as Fix & Flip Hub) offers DSCR loans with interest rates as low as 6.75 %, a minimum DSCR of 0.75 and a maximum LTV of 80 % for purchases (75 % for refinances). Their program lends on 1‑ to 8‑unit properties, and loan amounts range from $125,000 to $3,000,000. Constitution Lending stands out by closing in as little as 7–14 days and by having relatively low credit score requirements (around the mid‑600s). Investors who have properties with slightly tight cash flow may appreciate the lower DSCR threshold.

#6 Launch Financial Group – Best for LLC Borrowers

Launch Financial Group structures DSCR loans specifically for real estate investors who prefer to hold assets in an LLC. Their program requires a minimum credit score of 620, a minimum loan amount of $150,000, and max LTV of 80 %. Launch permits multiple properties on a single loan and does not require personal income documentation. Borrowers can choose between 30‑ and 40‑year fixed‑rate loans or interest‑only periods, making this program attractive for long‑term buy‑and‑hold investors.

#7 Easy Street Capital – Best Starting Rates

Easy Street Capital’s Ohio DSCR program, called EasyRent, advertises interest rates starting around 5.75 % and allows up to 80 % LTV. Unlike many competitors, Easy Street does not set a minimum DSCR requirement, which can help investors who buy properties with break‑even cash flow but expect rents to increase. Rates vary depending on credit score, DSCR ratio and points paid; investors can buy down their rates by paying additional upfront fees.

DSCR Loan Rates, Terms and Qualification Factors in Columbus

Although DSCR loan rates fluctuate with market conditions, investors should budget for rates roughly 2–3 percentage points higher than conventional investment loans. As of early 2026, many Columbus DSCR lenders quote rates between 5.75 % and 7.5 % depending on credit score, DSCR ratio, LTV and loan purpose. Newfi and Easy Street Capital offer some of the lowest published starting rates around 5.75 %, while Ridge Street and CoreVest quote rates in the 6–7 % range. Constitution Lending lists rates as low as 6.75 %.

Typical qualification criteria include:

• Credit score: Many lenders require 640–660 or higher. Launch Financial Group will consider scores as low as 620.
  
• DSCR ratio: Most programs require DSCR ≥ 1.0, though some accept 0.8–0.9 if other compensating factors exist.
  
• Down payment/LTV: Expect to put down 20 % for purchases. Maximum LTVs typically range from 75 %–80 % for purchases and 75 % for cash‑out refinances.
  
• Loan amount: Minimum loan amounts vary. CoreVest starts at $75 k, Launch at $150 k, and Constitution Lending at $125 k. Maximums range from $2 M to $3 M.
  
• Reserves: Lenders often require 3–6 months of principal, interest, taxes and insurance reserves. Larger portfolios may need more.
  
• Experience: While not always mandatory, lenders give better terms to investors with property management experience or who have completed 1–2 deals.
  

Common Mistakes Investors Make with DSCR Loans

1. Overestimating rental income. Investors sometimes assume they can rent a property at top‑of‑market rates. In reality, vacancies, seasonal fluctuations and tenant turnover can reduce effective income. Conduct conservative rent comps using multiple sources such as Zillow, Rentometer and local property managers.
   
2. Underestimating expenses. DSCR calculations typically use gross rents minus operating expenses. Don’t overlook maintenance, insurance, property taxes, leasing fees and property management costs. Overly optimistic expense assumptions can push the DSCR below lender thresholds.
   
3. Ignoring reserves. Lenders usually require reserve funds equal to several months of debt payments. Investors who stretch to meet down payment and closing costs may be denied if they have no additional liquidity.
   
4. Choosing the wrong term. Interest‑only periods can boost cash flow initially but lead to higher payments later. Evaluate your investment horizon when selecting between 30‑year fixed, 40‑year or interest‑only structures.
   
5. Not planning for rate resets. Adjustable‑rate DSCR loans may start with lower rates but reset after 5 or 7 years. Make sure you can withstand higher payments or have a refinance plan.
   

DSCR Loans vs. Traditional Investment Property Financing

Conventional investment property mortgages remain an option for borrowers who can document W‑2 income and meet debt‑to‑income requirements. Compared with DSCR loans, conventional mortgages offer lower interest rates but require full income verification, W‑2s, tax returns and typically a DTI below 45 %. They may limit the number of financed properties and impose stricter reserve requirements. In contrast, DSCR loans emphasize property cash flow rather than the borrower’s personal income, accept DSCR ratios as low as 0.75–1.0, and allow financing in an LLC. However, DSCR loans charge higher rates and fees and often require larger down payments. Investors must decide whether the flexibility of DSCR financing outweighs the higher cost.

Who Are DSCR Loans Best For?

1. Self‑employed individuals. Entrepreneurs and gig‑economy workers may have fluctuating or hard‑to‑document income. DSCR loans allow them to leverage rental property cash flow instead.
   
2. Buy‑and‑hold investors. Landlords planning to keep properties long term can benefit from 30‑ or 40‑year amortization and interest‑only options that maximize cash flow.
   
3. Investors with existing portfolios. DSCR lenders often have no limit on the number of financed properties. Borrowers who have reached the 10‑property limit for Fannie Mae loans can continue to grow using DSCR products.
   
4. Limited liability companies (LLCs). DSCR lenders will typically lend to an LLC without requiring the borrower to deed the property into their personal name. This helps investors manage risk.
   
5. New investors with good credit. A borrower with a strong credit score and adequate down payment may prefer DSCR financing because it does not require employment verification and closes quickly. It also frees up personal borrowing capacity for future deals.
   

Columbus‑Specific Investing Considerations

1. University and healthcare demand. Ohio State University and the city’s hospital systems (e.g., OhioHealth, Nationwide Children’s Hospital) drive consistent rental demand. Investors focusing near campus should consider DSCR lenders that are comfortable underwriting student rentals.
   
2. Property taxes and city inspections. Columbus has moderate property taxes compared to coastal states, but investors should budget for annual re‑assessments. The city also enforces rental registration and inspection programs in certain neighborhoods; factor these into your operating costs.
   
3. A diverse economy. The city’s employment base includes government, higher education, finance (Huntington Bancshares, JPMorgan Chase), insurance (Nationwide), and technology firms. This diversity supports long‑term rental demand and helps investors weather economic cycles.
   
4. Infrastructure projects. Columbus is investing in transit and housing, including the LinkUS corridor and redevelopment of downtown. Buying property near planned transit lines can enhance appreciation.
   
5. Seasonal turnover. Student rentals often change tenants in May–August, while families prefer to move during summer. Plan your lease start dates and reserves accordingly.
   

Conclusion

For real estate investors seeking to build or expand their Columbus rental portfolios, DSCR loans unlock leverage based on property cash flow rather than personal income. While several lenders operate in this market, SelectHomeLoans.com stands out by offering low‑down‑payment options, flexible DSCR thresholds, LLC lending, and swift closings. Combined with competitive rates and deep knowledge of Columbus submarkets, Select Home Loans provides investors the tools to thrive in a balanced market where home prices hover around $279,900 and rents near $1,700. Investors should still compare programs, plan for higher interest rates and maintain adequate reservesbut with the right strategy and lender partnership, Columbus remains a compelling destination for rental property success.