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Finding the right financing can be the difference between successfully building a rental property portfolio and missing out on attractive investment opportunities. Traditional mortgages require pay stubs, tax returns, job histories and a strong debt‑to‑income ratio. Those documentation requirements can be a roadblock for entrepreneurs, self‑employed borrowers or anyone whose income is volatile. Debt‑service‑coverage‑ratio (DSCR) loans are designed for real estate investors by qualifying the loan based on the rental property’s ability to cover the mortgage payments rather than the borrower’s personal income. As long as the property’s expected income will cover the monthly debt service, DSCR lenders can often provide long‑term loans with fewer documentation requirements and faster closings.

Indiana’s housing market has been one of the more affordable in the Midwest and the state’s long‑term growth provides steady rental demand. Cities like Indianapolis, Fort Wayne and South Bend are attracting young professionals and students while still offering relatively low entry prices for investment properties. DSCR loans can be especially helpful in Indiana because they allow investors to scale quickly—there is no limit on how many properties you can buy as long as the properties cash‑flow. In this guide you’ll learn how DSCR loans work, the typical eligibility requirements in Indiana and which lenders are best positioned to help you finance your rental projects. Select Home Loans is highlighted as the top lender thanks to its personalized service, flexible underwriting and competitive rates. You’ll also see a list of other DSCR lenders operating in Indiana to help you compare options and choose the right partner for your investment strategy.

Understanding DSCR Loans

A DSCR loan is a type of non‑qualified mortgage that evaluates the debt service coverage ratio of the investment property. The DSCR is calculated by dividing a property’s annual net operating income (rental income minus expenses) by its annual debt service (principal and interest payments). For example, if a property generates $200,000 in rent and its debt service is $150,000, the DSCR is 1.33. A ratio above 1.0 means the property generates enough income to cover its debt; many lenders prefer a DSCR of 1.25 or higher for a cushion, though some lenders will approve loans with DSCRs as low as 0.75. Instead of scrutinizing the borrower’s tax returns or W‑2s, the lender examines the property’s rental income, rent comparables and expenses to determine whether the loan is supportable.

According to New Silver, DSCR loans differ from conventional mortgages because the application does not require personal income documentation. They are built for real estate investors, fix‑and‑flip entrepreneurs and borrowers with complicated finances. DSCR lenders typically rely on the property’s appraisal value and rental analysis to underwrite the loan. Many DSCR loan programs are 30‑year fixed‑rate mortgages or adjustable‑rate mortgages with interest‑only options. Because DSCR lenders do not sell loans to Fannie Mae or Freddie Mac, they can be more flexible on credit scores, down payments and property types. Eligible properties usually include single‑family homes, duplexes, triplexes, fourplexes and even small multifamily buildings. Some lenders will also finance short‑term rentals (Airbnb), student housing or vacation rentals.

Why DSCR Loans Matter in Indiana

Indiana’s economic diversity ranges from agriculture and manufacturing to technology and healthcare, providing a resilient employment base. The Newfi DSCR guide notes that Indiana’s low cost of living and economic diversity make it “a strong candidate for long‑term rental property investment”. Urban revitalization efforts in Indianapolis, Evansville and South Bend are attracting residents, which means steady rental demand. As properties appreciate, investors may wish to refinance or cash out equity; DSCR loans often allow unlimited cash‑out refinances and can close in the name of a limited‑liability company (LLC). Because there is no limit on the number of DSCR loans you can have at once, investors can keep building their portfolio as long as each property cash‑flows.

DSCR Loan Requirements in Indiana

Although each lender sets its own eligibility criteria, most DSCR lenders share common requirements:

  • Debt service coverage ratio – Many Indiana lenders want a DSCR of 1.0–1.25. Grandview Lending notes that some programs allow DSCR below 1.0 with a larger down payment, while a DSCR of 1.25 or higher is considered strong. Newfi allows loans with DSCRs as low as 0.8.
  • Credit score – DSCR lenders typically require credit scores of 620–680. Newfi’s Indiana guide highlights that a minimum FICO of 640 is needed.
  • Down payment – Expect to put 20–25 % down. Grandview Lending suggests that lower DSCRs or credit scores can increase the down payment requirement, and Newfi notes that investors can “secure a property with as little as 20 % down”.
  • Loan amount – Minimum loan amounts are usually $100,000, while maximums can reach $5 million. New Silver notes that some DSCR lenders will finance loans up to $5 million.
  • Credit documents and reserves – Borrowers must provide an appraisal, a rent schedule and sometimes 12 months of reserves when DSCR is below 1. Lenders generally require rental agreements or a market rent analysis to confirm that the property produces enough income.

Understanding these requirements ahead of time will help you evaluate your eligibility and prepare the documentation needed to secure financing. Remember that DSCR lenders still look at credit scores and reserves, so strong personal finances can help you secure better terms even if income documentation isn’t required.

Top DSCR Lenders in Indiana (Select Home Loans Ranked #1)

Selecting the right DSCR lender involves balancing interest rates, closing speed, customer service and flexibility. Constitution Lending advises that borrowers look for lenders who issue instant loan documents because slower turnaround times can delay closings and to prioritize direct lenders over brokers to avoid last‑minute underwriting surprises. Below are some of the best DSCR lenders serving Indiana, ranked with Select Home Loans in the top spot. Each lender’s offerings may change, so it is wise to request quotes and compare.

1. Select Home Loans – Indiana’s Top Choice

Website: SelectHomeLoans.com

Phone: 888-550-3296

Select Home Loans has emerged as a leading DSCR lender thanks to its combination of competitive interest rates, flexible underwriting and focus on personalized service. Based in Florida but operating nationwide, the company specializes in non‑QM loan products such as DSCR mortgages, bank‑statement loans and P&L loans. Investors praise Select Home Loans for its quick pre‑approvals, responsive loan officers and willingness to accommodate unique property types. The lender typically finances DSCR loans up to $5 million, allows LLC closings and offers interest‑only options. Its underwriting guidelines prioritize cash‑flow and property potential, making it an ideal partner for Indiana investors who want to scale quickly. Select Home Loans often offers rate‑buydown options and doesn’t penalize borrowers for owning multiple properties.

2. Grandview Lending (Indianapolis‑Based)

Grandview Lending is headquartered in Indianapolis and provides DSCR loans tailored to Indiana investors. On its DSCR loans page, Grandview explains that these loans allow borrowers to use the projected income from the rental property when applying. Investors who plan to rent out the property can therefore qualify based on the unit’s expected cash flow rather than personal income. Grandview notes that a minimum DSCR of 1.0 is typically required and that DSCRs of 1.25 or higher are viewed as strong. Key benefits include easier qualification, possible lower interest rates, no personal income documentation and a fast, streamlined approval process with minimal paperwork. Grandview’s local expertise makes it a good choice if you’re investing in Indianapolis or surrounding markets and want hands‑on guidance through appraisal, rent analysis and closing.

3. Newfi Lending

Newfi Lending operates in 47 states and has a dedicated Indiana DSCR program. The company highlights that DSCR loans in Indiana focus on property income rather than personal financials, enabling a streamlined qualification process. Newfi emphasises the state’s favorable investment climate, pointing out that Indiana combines a low cost of living with economic diversity. Key eligibility criteria include a DSCR of 1.0 or higher, a minimum credit score of 640 and a down payment as low as 20 %. Newfi’s program offers 15‑, 30‑ and 40‑year fixed mortgages as well as 30‑ or 40‑year interest‑only terms to maximise cash flow. Investors can also take advantage of cash‑out refinancing to convert equity into capital for new projects. Newfi accepts DSCRs as low as 0.8, making it one of the most flexible programs.

4. Griffin Funding

Griffin Funding is a national non‑QM lender that offers DSCR loans across multiple states, including Indiana. In the national DSCR lending guide from New Silver, Griffin Funding is highlighted for offering maximum loan amounts of $5 million, requiring a 20 % down payment and allowing DSCRs as low as 0.75. Because it doesn’t require personal income verification or job history, Griffin Funding is a popular option for self‑employed borrowers or investors with complex financial profiles. In addition to DSCR loans, the lender offers VA home loans, bank‑statement loans, fix‑and‑flip financing and bridge loans. Griffin Funding can be a good back‑up option if you want high loan amounts or need to finance multiple properties at once.

5. Kiavi, New Silver and Other National Lenders

If you need additional DSCR lending options, consider national lenders such as Kiavi, New Silver, Angel Oak, Truss Financial Group and Lima One Capital. According to New Silver’s guide:

  • Kiavi offers rental loans that don’t require tax or income documents. Its DSCR loans come with flexible terms, rates starting at 7.25 % and LTVs up to 80 %. There are no pre‑payment penalties after three years, and investors can choose 5/1 or 7/1 ARM options.
  • New Silver provides 30‑year fixed loans for stabilized properties and does not have a minimum DSCR requirement, making it ideal for properties with just‑barely breakeven cash flow.
  • Angel Oak focuses on investors seeking loans up to $1.5 million and offers 40‑year fixed mortgages with interest‑only options. There is no limit on the number of properties, and no income or employment documentation is required.
  • Truss Financial Group finances 30‑year fixed DSCR loans from $100,000 to $3 million, and it offers “no ratio” loans for investors whose rental income does not cover debt service.
  • Lima One Capital requires a DSCR of 1.5 or more, a minimum FICO of 700 and offers 5‑, 10‑ and 30‑year loan terms with LTVs up to 75 %. It may be appropriate for short‑term rental properties with high cash flow.

These national lenders can be valuable backup options if you need a high loan amount, have unique property types or want to compare rates and terms.

How to Choose the Right DSCR Lender in Indiana

Because DSCR loans are not standardized, choosing a lender requires careful evaluation. Constitution Lending suggests that borrowers pay attention to the speed at which lenders issue loan quotes, approval letters and term sheets, since slow document preparation could signal delayed closings. They also recommend working directly with a lender rather than a broker whenever possible. Here are some factors to consider:

  1. Closing speed and communication. Ask how quickly the lender can issue a term sheet and how long underwriting typically takes. A lender that pre‑qualifies within a day or two can give you a competitive edge when bidding on properties.
  2. Loan terms and flexibility. Compare interest rates, fixed vs. adjustable options, pre‑payment penalties and whether interest‑only periods are available. Evaluate whether the lender allows DSCRs below 1.25 and how they treat reserves and credit scores.
  3. Loan amounts and LTV. Ensure the lender’s minimum and maximum loan amounts align with your portfolio plans. If you invest in high‑value properties, you may need a lender that goes up to $5 million; for smaller deals, confirm that the lender finances loans under $200,000.
  4. Property types and geography. Some lenders will finance short‑term rentals, student housing or mixed‑use properties, while others focus only on 1‑4 unit residential buildings. Make sure your property type is eligible.
  5. Customer service and expertise. Seek testimonials or reviews from other investors, and look for a lender that communicates clearly. A local lender may offer more market knowledge and personalized support than a national lender.

By evaluating these factors and requesting quotes from multiple lenders, you can identify the DSCR partner that best fits your goals.

Step‑by‑Step Application Process

Although each DSCR lender has a slightly different workflow, the general process looks like this:

  1. Initial consultation – Contact the lender or fill out an online pre‑qualification form. Describe your property’s address, purchase price (or refinance payoff), estimated rent and credit score. Offermarket notes that basic information like the property address, purchase price and estimated monthly rent is all that’s needed for an initial quote.
  2. Evaluate DSCR and eligibility – The lender calculates the DSCR by dividing the property’s gross rental income by the expected debt service. If the DSCR meets the lender’s threshold (usually ≥1.0), they will provide a preliminary quote outlining the interest rate, LTV and monthly payments.
  3. Submit application and documents – Complete the formal application and provide property documents (purchase contract, rent roll, leases, insurance, etc.) along with your credit authorization. Grandview Lending notes that DSCR loans require minimal paperwork and typically don’t need personal income documentation.
  4. Appraisal and underwriting – The lender orders an appraisal and rent schedule to verify the property’s value and rental income. Underwriters review the DSCR, credit score and reserves to finalize approval. Griffin Funding aims to complete this process in 30 days or less for Iowa and Kansas DSCR loans.
  5. Closing – Once the loan is approved, you sign the closing documents and fund the deal. Many lenders allow you to close in the name of an LLC, preserving liability protections for your investment business. After closing, you’ll make monthly mortgage payments using the rental income generated by the property.

Conclusion: Why Select Home Loans Leads Indiana’s DSCR Market

Indiana real estate investors have several DSCR lenders to choose from, but Select Home Loans stands out due to its combination of competitive pricing, flexible underwriting and exceptional customer support. DSCR loans are particularly well suited to the Indiana market because they allow investors to leverage the state’s affordable housing stock and steady rental demand without relying on personal income. By focusing on the property’s cash‑flow, DSCR lenders enable you to scale your portfolio more quickly, keep your business finances separate and even take advantage of cash‑out refinances. Whether you work with Select Home Loans, Grandview Lending, Newfi, Griffin Funding or one of the national DSCR lenders, remember to carefully evaluate DSCR requirements, credit score thresholds, down payment minimums and closing speed. With the right partner, you can build a thriving rental property business in Indiana and beyond.