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

Pennsylvania offers a compelling blend of historic cities, college towns and rural markets, making it a diverse playground for rental investors. Like elsewhere, the key to unlocking scale in the Keystone State is using Debt Service Coverage Ratio (DSCR) loans, which rely on a property’s cash flow rather than the borrower’s W‑2s. In 2025 the average monthly rent in Pennsylvania is $1,548, with two‑bedroom units averaging $1,550. HUD’s FMR for a two‑bedroom apartment stands at $1,421, and the one‑bedroom FMR is $1,170. Pennsylvania rents are about 15 % lower than the national average, and more than half of leases (56.1 %) rent for less than $1,000. Combined with a diverse economy and a strong population of students and young professionals in cities like Philadelphia, Pittsburgh, State College and Harrisburg, these factors create an attractive environment for buy‑and‑hold and short‑term rental strategies.

This comprehensive guide explains how DSCR loans work in Pennsylvania, outlines the state’s lending requirements, ranks the top DSCR lenders – putting Select Home Loans in the lead – and provides practical tips for choosing a lender and applying for a loan. Whether you’re house‑hacking a duplex in Lancaster or acquiring a portfolio of row houses in Philadelphia, understanding DSCR financing will expand your options.

Understanding DSCR Loans

DSCR Fundamentals. DSCR loans base approval on the ratio of a property’s net operating income to its annual debt payments. A DSCR of 1.0 means the property’s cash flow exactly covers the mortgage; lenders usually want a cushion. Ratios of 1.25 or higher are considered strong. Because underwriters evaluate the property’s income rather than the borrower’s tax returns, DSCR loans are a favourite among self‑employed investors and those with high DTI ratios.

Popular Uses. Investors use DSCR loans for long‑term rentals, short‑term rentals (Airbnb/VRBO) and small multi‑family buildings. They are also useful for cash‑out refinances that free up equity to purchase additional properties. Borrowers can put the property in an LLC for liability protection and easier bookkeeping. Additionally, DSCR loans typically allow investors to finance an unlimited number of properties.

General Requirements. Most lenders want a DSCR of 1.0 or better, a minimum FICO between 620 and 660, and a down payment of 20 % or more. Loan amounts commonly range from $75k to $2 million, though some institutions will go far higher. DSCR loans are available for single‑family homes, duplexes, four‑plexes, condominiums and small apartment buildings. They cannot be used for owner‑occupied properties or second homes.

Pennsylvania‑Specific DSCR Requirements and Benefits

Although DSCR guidelines are similar across states, Pennsylvania lenders have developed programs tailored to local investors. Below is a summary of the key criteria and benefits.

• DSCR Threshold: Newfi, which actively lends in Pennsylvania, will finance properties with DSCR ratios down to 0.8. However, most lenders – including Longleaf Lending’s Pittsburgh office – require DSCR >1.0 and prefer ratios between 1.0 and 1.2. A DSCR of 1.25 remains the gold standard for the best rates.
  
• Credit Score: Minimum FICO scores range from 640 (Newfi) to 660 (Longleaf). Borrowers with scores above 700 may qualify for better pricing and lower fees.
  
• Down Payment & LTV: Down payments start at 20 %. LTV caps are generally 80 % for purchases and 75 % for cash‑out refinances. Newfi offers 80 % LTV up to $3 million, while some local lenders may limit cash‑out LTV to 70 %.
  
• Loan Terms: Pennsylvania DSCR loans come with a choice of 15, 30 and even 40‑year amortisation schedules, with or without interest‑only periods. Longer terms or interest‑only periods can improve cash flow and DSCR. Loan amounts typically range from $75k to $2 million, though some national lenders exceed $20 million.
  
• Property Types: Lenders finance a broad range of assets, including single‑family rentals, duplexes, triplexes, four‑plexes, small multifamily properties, condos and townhomes. Short‑term rentals are allowed if the property has a verifiable rental history or if rental projections can support the DSCR requirement.
  
• Documentation and Reserves: DSCR loans require lease agreements or rent projections, an appraisal with a rent schedule, proof of funds for down payment and closing costs, and a credit report. Because many Pennsylvania properties are older, lenders may also request inspection reports to verify deferred maintenance. Borrowers purchasing properties in flood zones will need flood insurance.
  

Benefits for Pennsylvania Investors

Pennsylvania offers a wide variety of rental markets – from high‑yield college towns like State College and Indiana, PA to high‑end neighborhoods in Philadelphia and Pittsburgh. DSCR loans let investors capitalise on these markets without maxing out their personal DTI. Additional advantages include the ability to close loans in an LLC, unlimited cash‑out for refinances, and the ability to hold multiple loans simultaneously. These features make DSCR financing an attractive alternative to commercial loans, which often require expensive origination fees and personal guarantees.

Top DSCR Lenders in Pennsylvania

1. Select Home Loans (Best Overall)

Website: SelectHomeLoans.com

Phone: 888-550-3296

Select Home Loans earns the top spot again thanks to its combination of competitive rates, flexible underwriting and attentive customer service. The company offers DSCR loans across Pennsylvania with minimum DSCR of 1.0, credit score minimum of 620 and down payments starting at 20 %. Borrowers can opt for 30‑year fixed, 30‑year with 10‑year interest‑only, or 40‑year amortisation. Select Home Loans allows unlimited properties and will finance up to $5 million per property, making it suitable for small landlords and portfolio investors alike. The lender has a local team familiar with property taxes and zoning laws in Philadelphia, Pittsburgh, Allentown and Erie. Its fast pre‑approvals and dedicated loan officers help investors compete in Pennsylvania’s competitive markets.

2. Newfi

Newfi is one of the most investor‑friendly DSCR lenders serving Pennsylvania. It will finance properties with DSCR as low as 0.8 and allows borrowers to choose between 15‑, 30‑ and 40‑year terms or interest‑only structures. Minimum credit score is 640, and down payments begin at 20 %. Newfi lends on single‑family rentals, duplexes, triplexes, four‑plexes and condos. The company is a good fit for investors with lower DSCR properties or those seeking a 40‑year amortisation to maximise cash flow.

3. Longleaf Lending

Longleaf Lending’s Pittsburgh branch serves investors across Pennsylvania. The lender requires a DSCR above 1.0 and lends between $75k and $2 million. LTV is up to 80 %, and borrowers must have at least a 660 credit score. Interest rates start around 6.6 %, and closings can occur in as few as two weeks. Longleaf’s combination of speed and flexibility makes it a favourite among investors who frequently buy value‑add properties in Pittsburgh’s up‑and‑coming neighborhoods.

4. Griffin Funding

Griffin Funding’s Pennsylvania program mirrors its national DSCR product: minimum FICO 620, down payment 20 %, and DSCR ≥1.0. The company will lend up to $20 million and accept lower DSCRs for borrowers willing to contribute additional reserves or accept higher rates. Griffin Funding also works with borrowers who have multiple financed properties and needs cross‑collateralisation or portfolio loans. Its DSCR loans suit investors who value flexibility and access to high leverage.

5. Ridge Street Capital

Ridge Street Capital, headquartered in New York, offers DSCR loans in Pennsylvania with competitive rates and quick approvals. The firm’s program typically requires DSCR of 1.0, down payment of 20 %, and credit score of 660 or higher. Loan amounts start at $150k and can exceed $3 million. Ridge Street is known for its responsive service and ability to structure loans for mixed‑use properties and small apartment buildings in urban markets.

6. NQMF Funding

NQMF (National Qualified Mortgage Fund) specialises in DSCR loans for smaller multi‑family properties and college‑town rentals. While its websites are sometimes difficult to access, the company often advertises DSCR requirements of 1.0, LTV up to 80 % and credit score minimum 620. NQMF also accommodates foreign nationals and borrowers who hold properties in LLCs. Investors looking to finance off‑campus housing near Penn State or Temple University may find NQMF to be a good partner.

7. CoreVest

CoreVest offers 30‑year DSCR loans with DSCR threshold of 1.0 and LTV up to 80 %. The company finances both individual properties and portfolios, with loan amounts starting at $75k and exceeding $2 million. CoreVest’s experience with investors across the country means that Pennsylvania borrowers receive consistent underwriting and quick approvals. However, interest rates may be slightly higher than those of smaller regional lenders.

8. Angel Oak Mortgage Solutions

Angel Oak lends up to $1.5 million and offers 30‑ and 40‑year terms with interest‑only options. DSCR thresholds start around 1.0 and the company accepts credit scores as low as 620. Angel Oak will finance properties with up to 20 units, making it a good option for investors seeking to graduate from small properties to mid‑sized apartment buildings.

9. Kiavi

Kiavi provides DSCR loans for one‑ to four‑unit properties. Its program typically requires DSCR of 1.0 and credit scores above 640. Loan amounts range from $50k to $2 million, and the lender offers renovation financing through its bridge program. Kiavi’s digital platform simplifies document submission and allows investors to manage multiple loans in one portal.

10. Local Banks and Credit Unions

Pennsylvania has numerous community banks and credit unions that offer portfolio lending programs similar to DSCR loans. Institutions like First Commonwealth Bank and Fulton Bank sometimes make “Investor Cash Flow” loans that use rental income to qualify borrowers. These programs may require DSCR between 1.2 and 1.3, but they often waive prepayment penalties and offer competitive adjustable rates. Local lenders understand municipal ordinances and inspection requirements, which can smooth the closing process for investors purchasing older row houses or properties in historic districts.

Choosing the Right Lender

When comparing DSCR lenders in Pennsylvania, consider the following factors:

• DSCR Threshold: If your property’s DSCR is near 1.0, choose a lender like Newfi or Griffin Funding that accepts lower ratios. For higher DSCR properties, you may secure better terms from conservative lenders.
  
• Credit Score Requirements: Borrowers with credit scores in the mid‑600s should favour lenders like Newfi or CoreVest. If your FICO is above 700, you can negotiate lower rates.
  
• Loan Size and Property Type: Match your loan amount and property type to the lender’s guidelines. For portfolios or loans above $3 million, select a lender with high limits such as Griffin Funding or Select Home Loans. If you’re financing a duplex or triplex, almost any DSCR lender will suffice.
  
• Closing Speed and Service: Pennsylvania markets can be competitive. Lenders like Longleaf Lending and Select Home Loans provide fast approvals and closings (often under three weeks). Local banks may move slower but can be flexible on terms.
  

Step‑by‑Step DSCR Loan Application Process in Pennsylvania

1. Evaluate your property. Research comparable rents to confirm your forecast. Use the state’s FMR data as a baseline (a two‑bedroom FMR is $1,421) and verify your rent will cover mortgage payments plus reserves.
   
2. Calculate the DSCR. Subtract operating expenses from expected rent to compute NOI, then divide by annual debt service. If the ratio is below 1.0, consider increasing your down payment or finding a higher‑renting property.
   
3. Collect documents. Gather leases or market rent analysis, personal identification, bank statements, proof of reserves and down payment, and entity documents. In older Pennsylvania homes, you may need inspection reports and evidence of repairs to satisfy lenders.
   
4. Comparison shop. Contact at least three DSCR lenders, including Select Home Loans, Newfi and a local bank. Request term sheets and compare rates, fees, DSCR requirements and loan amounts.
   
5. Submit a full application. Provide property address, purchase contract, appraisal deposit and requested documents. The lender will order an appraisal with a rent schedule and may require an operating statement for multi‑unit properties. Respond quickly to underwriting requests.
   
6. Review the approval and close. Once you receive a commitment letter, review the loan terms carefully. Confirm prepayment penalties, reserve requirements and interest‑only periods. At closing, wire your down payment and sign loan documents. Maintain proper insurance and hold reserves per lender guidelines.
   

Improving Your DSCR

If your property’s DSCR falls below lender thresholds, implement strategies to raise it. Increase rents by upgrading finishes or providing furnished units. Lower expenses by appealing property taxes, shopping for insurance and performing preventive maintenance to avoid costly repairs. Consider a different loan term: switching from a 15‑year to a 30‑ or 40‑year term lowers the annual debt service and can boost DSCR. Refinance high‑interest loans on other properties to free up cash flow. Finally, diversify your portfolio: purchasing in emerging Pennsylvania markets like Scranton or York may yield higher rents relative to purchase price, resulting in stronger DSCRs.

Conclusion

DSCR loans provide Pennsylvania investors with a powerful alternative to conventional mortgages. With state rents averaging $1,548 per month and a two‑bedroom FMR of $1,421, many Pennsylvania rentals easily cover their debt service, making DSCR loans ideal. By understanding the state’s DSCR requirements, selecting the right lender and following a structured application process, investors can secure financing that scales with their ambitions. Select Home Loans leads our rankings due to its flexible programs and local expertise, but Newfi, Longleaf Lending and Griffin Funding also offer strong options. Whether you focus on Philadelphia rowhouses, Pittsburgh multifamily properties or student housing near Penn State, DSCR financing can help turn cash‑flowing rentals into a thriving portfolio.