On this page
- DSCR loan for an LLC: lender rules compared
- Why lenders can lend to an LLC
- The personal guarantee
- Documents and steps
- Buy in the LLC, or move the property in later?
- DSCR terms when you borrow through an LLC
- Worked example: an LLC buys a $350,000 rental
- LLC or your own name: side by side
- What the lender looks at besides the LLC
- Short-term rentals in an LLC
- Other entity types: LPs, corporations and trusts
- State rules
- Mistakes that hold up an LLC closing
- Partners, foreign owners and portfolios
- HELOCs and second liens on an LLC-owned rental
- Which lenders fit your setup
- Pros and cons of using an LLC
- Questions to ask your lender
- Related guides
- Frequently asked questions
Based on each lender's published information; we did not apply for loans.
Yes, a limited liability company can take out a DSCR loan, and for many DSCR lenders it is the normal way to borrow. DSCR loans are business-purpose loans on rental property you do not live in, so lenders can lend to an entity instead of a person. What changes from lender to lender is whether the LLC is required, whether you can borrow in your own name instead, and who has to sign a personal guarantee.
DSCR loan for an LLC: lender rules compared
| Lender | LLC rule | Personal guarantee |
|---|---|---|
| Kiavi | Required: lends to business entities in all the states it serves | Not stated |
| Lima One Capital | Required: the property must be held or bought in an LLC or similar entity for a business-purpose rental loan | Not stated |
| Visio Lending | Required in GA, HI, IL, MA, NJ, NY, PA and VA | Not stated |
| LendingOne | Business-purpose loans that close under an LLC; LLCs and trusts allowed | Guarantees allowed (its comparison table) |
| Easy Street Capital | Recommends an LLC; borrowing as an individual is OK in most states | Full guaranty from anyone owning more than 25%; up to four guarantors |
| Griffin Funding | Individual or U.S. LLC; partnership, corporation, S corp or revocable trust by program; some states require an entity | Personal guarantee with an LLC |
| Upright | Lends to entities; most borrowers use one | Personal guarantee from the principals behind the entity |
| Ternus | LLC, LP or corporation | Individual guarantor required |
| New Silver | LLCs and corporations can be issued DSCR loans | Not stated |
| Express Capital Financing | Can close under an LLC with its articles, operating agreement and EIN | Says some lenders require a guarantee, especially for a new entity or a low DSCR |
From each company's own website, read October 29, 2026. "Not stated" means the company does not publish it on the pages linked. Terms change; confirm with the lender. Not financial advice.
Griffin Funding sums up the flexible camp: you usually do not need an LLC to get a DSCR loan, and eligible loans can close in your name or a U.S. LLC, although some states, programs or structures require entity vesting. At Kiavi and Lima One there is no choice: no entity, no loan.
Why lenders can lend to an LLC
Federal Truth in Lending rules do not apply to an extension of credit to other than a natural person, or to credit primarily for a business purpose (12 CFR 1026.3(a)). The official interpretation treats credit to buy, improve or maintain a rental you do not live in as deemed to be for business purposes, regardless of the number of units, unless you expect to live there more than 14 days in the coming year. So a DSCR loan to your LLC on a tenant-occupied rental is business credit either way. The lender still underwrites the property's rent; the DSCR ratio guide explains that test.
Conventional loans work differently: Griffin notes that conventional investment-property loans generally are not made directly to LLCs. The full comparison is on DSCR loan vs conventional loan.
The personal guarantee
An LLC on the loan does not take you off the hook. Griffin says an LLC can own the property and borrow, but an owner generally still provides a personal guarantee. Upright lends to entities with a personal guarantee from the principals, and Ternus requires an individual guarantor. A guarantee means the lender can pursue the guarantor if the LLC does not pay.
Easy Street Capital publishes the most precise rule: it requires a full guaranty for anyone who has more than 25% of ownership of the entity and allows up to four guarantors on each loan. Applied to common ownership splits:
| LLC | Ownership | Guarantors under the more-than-25% rule |
|---|---|---|
| Two owners, 50/50 | 50%, 50% | 2 |
| Three owners, 50/30/20 | 50%, 30%, 20% | 2 |
| Four owners, 40/40/10/10 | 40%, 40%, 10%, 10% | 2 |
| Four equal owners, 25% each | 25%, 25%, 25%, 25% | 0 |
Computed from Easy Street's stated rule. With four equal 25% owners nobody is above 25%; ask the lender who signs in that case.
Non-recourse loans, where the lender cannot pursue a guarantor, appear on portfolio loans at two lenders here: CoreVest offers recourse and non-recourse options on rental portfolio loans, and RCN Capital lists non-recourse options on its structured portfolio loans.
Documents and steps
Express Capital Financing lists what it needs to close under an LLC: the LLC’s Articles of Organization, Operating Agreement, and an EIN. Griffin adds a business account and good standing: form the entity, obtain an EIN, prepare the operating agreement, open a business account, and have the entity active before closing. A new LLC may qualify without business credit history. Expect the lender to ask for the guarantors' credit and identification as well; general paperwork is listed on hard money loan requirements.
Buy in the LLC, or move the property in later?
Closing directly in the LLC is the clean route. If you already own the rental in your own name with a mortgage, Griffin advises you to review any due-on-sale risk before transferring it, since moving title can conflict with the existing loan's terms. Refinancing into a DSCR loan in the LLC's name is one way some owners make the switch; see DSCR cash-out refinance.
DSCR terms when you borrow through an LLC
Their general DSCR terms, from each lender's own DSCR page:
| Lender | Minimum DSCR | Maximum leverage | Minimum credit |
|---|---|---|---|
| Kiavi (loans made by Figure Lending) | 0.8x | Up to 80% | Not stated |
| Lima One Capital | 1.0 | 80% purchase; 75% cash-out | 660 |
| LendingOne | As low as 0.75 | 80% purchase; 75% cash-out | Not stated |
| Easy Street Capital | No minimum | 80% purchase; 75% cash-out | 640 |
| Griffin Funding | No minimum; no-ratio program | Down payment as low as 15% at 740+ credit; 80% cash-out | 620 |
| Upright | 0.90x (1.15x for short-term rentals; 1.25x for 5 to 10 units) | 80% purchase; 75% cash-out (cash-out capped at $1M) | 660 |
| Ternus | 1.00x at 680+ credit; 1.15x at 660 to 679 | 80% purchase; 75% cash-out | 660 |
| New Silver | 0.75 | 80% of purchase price | 660 |
Worked example: an LLC buys a $350,000 rental
At 80% loan-to-value the LLC borrows $280,000 and brings $70,000. At Griffin Funding's 15% down (740+ credit for the guarantor's score, loans up to $1,000,000) it borrows $297,500 and brings $52,500.
| Scenario | Down payment | Loan | Principal and interest at 7.125% | With taxes and insurance |
|---|---|---|---|---|
| 80% LTV | $70,000 | $280,000 | $1,886.41 | $2,296.41 |
| 85% LTV (15% down) | $52,500 | $297,500 | $2,004.31 | $2,414.31 |
Rate: Griffin Funding's 30-year fixed starting rate (October 2026). Taxes ($300) and insurance ($110) a month are illustrative inputs. Rent equal to the last column gives a DSCR of 1.00, the minimum at Lima One and RCN Capital. Test your own numbers in the DSCR calculator.
Does the rent cover it?
The LLC changes nothing in the ratio: lenders divide the rent by the full monthly payment. On the 80% loan above ($2,296.41 a month with taxes and insurance):
| Monthly rent | DSCR | Published minimums met | Lenders whose minimum it meets |
|---|---|---|---|
| $2,100 | 0.91 | 7 of 12 | Easy Street Capital, Griffin Funding, Upright, New Silver, Kiavi, LendingOne and others |
| $2,300 | 1.00 | 11 of 12 | Easy Street Capital, Griffin Funding, Upright, RCN Capital, New Silver, Kiavi and others |
| $2,500 | 1.08 | 11 of 12 | Easy Street Capital, Griffin Funding, Upright, RCN Capital, New Silver, Kiavi and others |
Minimums from each lender's DSCR page as listed on DSCR loans; lenders with no published minimum count as met. Ratios rounded down to two decimals.
LLC or your own name: side by side
| Borrow through an LLC | Borrow in your own name | |
|---|---|---|
| Who signs the note | The LLC; owners sign a personal guarantee | You |
| Lenders open to you | All DSCR lenders here, including Kiavi and Lima One | Not Kiavi or Lima One; Griffin, and Easy Street in most states |
| Truth in Lending (Regulation Z) | Not covered: credit to other than a natural person | Not covered if it is a rental you do not live in and do not expect to occupy more than 14 days a year (business purpose) |
| Conventional loan as an alternative | Generally not made directly to LLCs | Possible; compare on DSCR vs conventional |
| Paperwork | Entity documents plus the usual loan file | The usual loan file (property, credit, funds) |
What the lender looks at besides the LLC
A brand-new LLC has no track record, so the lender underwrites around it. Griffin says the lender reviews the property, your credit, available funds, and the overall loan, not only the entity. In practice the guarantor's credit score sets your tier: 620 is Griffin's floor and 740 unlocks its 15% down option, and RCN Capital's leverage steps down below 700. The property's rent and value carry the rest, which is the point of a DSCR loan.
Example: two partners, one LLC
Two investors form an LLC, 60/40, to buy the $350,000 rental at 80% LTV. The $70,000 down payment splits $42,000 and $28,000 if they fund it pro rata. At Easy Street both owners are above 25%, so both sign full guaranties. Write the split, who manages the LLC, and what happens if one partner wants out into the operating agreement before you apply: the lender will read it.
Short-term rentals in an LLC
Vacation rentals follow the same entity rules. LendingOne says it finances Airbnb or VRBO-style properties under your LLC through its DSCR rental program. Short-term rental income is counted differently from long-term leases; see DSCR loans for short-term rentals.
Other entity types: LPs, corporations and trusts
An LLC is the most common choice, not the only one. Griffin Funding says title can be held in a partnership, corporation, S corp, or revocable trust depending on the program. Ternus lists an LLC, LP or corporation with an individual guarantor; LendingOne's comparison lists LLCs and trusts; New Silver says LLCs and corporations can be issued DSCR loans. If your rentals sit in a trust or a corporation, ask the lender before you form a new entity just for the loan.
State rules
Where you buy can decide the question for you. Visio Lending says an LLC or other entity is required in Georgia, Hawaii, Illinois, Massachusetts, New Jersey, New York, Pennsylvania and Virginia. Griffin notes that some states require entity vesting, and Easy Street allows individual borrowers in most states, not all. Kiavi requires an entity in every state it serves. Check your state's lenders on the lenders by state list.
Mistakes that hold up an LLC closing
- An entity that is not in good standing. Griffin wants the LLC active and in good standing before closing.
- No business account. Griffin's checklist includes opening one for the LLC.
- Moving a mortgaged property into the LLC first. Review the due-on-sale question before transferring title.
- Assuming the LLC shields you from the loan. Most lenders here require a personal guarantee.
- Missing a partner's guarantee. At Easy Street every owner above 25% signs; line those partners up early.
Partners, foreign owners and portfolios
Multi-member LLCs
Easy Street allows up to four guarantors per loan and lends to partners borrowing within an LLC. It will also lend to foreign nationals living abroad if the borrowing entity is an LLC and 50% or more of it is owned by a US citizen or green card holder.
Several rentals in one LLC
Blanket loans put several properties under one loan: Easy Street's blanket rental loans start at $225,000 and need three or more properties; Upright lends up to $5,000,000 on a cross-collateralized portfolio in a single state; CoreVest's portfolio loans go up to 70% LTV.
HELOCs and second liens on an LLC-owned rental
Equity lines work with entity title too. Griffin Funding says properties titled in an LLC or corporation qualify for its DSCR HELOAN and HELOC, and Truss Financial Group closes in the name of your LLC. Programs and limits are compared on DSCR HELOC.
Which lenders fit your setup
| Your situation | Where to start |
|---|---|
| No LLC yet, and you want to close soon | Griffin Funding, or Easy Street Capital in most states, let you borrow in your own name |
| You already hold rentals in an LLC | Any lender here; Kiavi and Lima One require it |
| Three or four partners | Easy Street allows up to four guarantors on one loan |
| A partner who lives abroad | Easy Street lends if the LLC is at least 50% owned by US citizens or green card holders |
| Several rentals under one loan | Easy Street blanket loans (three or more properties), Upright cross-collateralized portfolios, CoreVest portfolio loans |
| You want to keep your first mortgage and borrow against an LLC-owned rental | Griffin Funding's DSCR HELOAN or HELOC, or Truss Financial Group's DSCR HELOC |
From each lender's own pages, read October 29, 2026. Starting points, not approvals: each lender still underwrites the property and the guarantors.
Pros and cons of using an LLC
| Reasons to borrow through an LLC | What it costs you |
|---|---|
| Some lenders require it: Kiavi and Lima One lend only to entities | You still sign a personal guarantee at most lenders |
| Close straight into the LLC instead of moving title later, which Griffin warns can raise due-on-sale questions | Formation, an EIN, a business account and state filings before closing |
| DSCR programs can lend to an LLC; conventional investment loans generally are not made to LLCs | Partners above 25% each guarantee at Easy Street |
| Credit to an entity is exempt from Regulation Z (12 CFR 1026.3(a)(2)) | Some lenders allow a personal-name loan anyway (Griffin, Easy Street in most states) |
| A new LLC may qualify without business credit history | Entity documents add to the underwriting file |
An LLC is a legal and tax decision as much as a lending one. Lenders' pages describe what they accept; whether an LLC suits your situation is a question for a lawyer or accountant in your state.
Questions to ask your lender
- Is an entity required in my state, or can I close in my own name?
- Who must sign the personal guarantee, and is it full or limited?
- Can the LLC be newly formed, and does it need a business bank account before closing?
- Which entity types do you accept: single-member LLC, multi-member LLC, LP, corporation, trust?
- Does the guarantor's credit score set the rate and leverage?
- Are non-recourse options available, and at what loan size?
Related guides
Frequently asked questions
Can an LLC get a DSCR loan?
Yes. Kiavi and Lima One require an entity, Easy Street Capital recommends one, and Griffin Funding, Upright, Ternus, New Silver and LendingOne lend to LLCs. Most require a personal guarantee from the owners.
Do I need an LLC to get a DSCR loan?
Not always. Griffin Funding says you usually do not, and Easy Street Capital says borrowing as an individual is OK in most states, but Kiavi and Lima One lend only to entities.
Does a DSCR loan in an LLC need a personal guarantee?
Usually. Griffin says an owner generally still provides one, Upright requires one from the principals, Ternus requires an individual guarantor, and Easy Street requires a full guaranty from anyone owning more than 25%.
Can a new LLC get a DSCR loan?
Yes at Griffin Funding, which says a new LLC may qualify without business credit history if it is formed, has an EIN, an operating agreement and a business account, and is in good standing before closing.
How hard is it to qualify for a DSCR loan?
Published credit minimums run from 620 at Griffin Funding to 680 at Visio Lending, minimum DSCRs from none to 1.0 or more, and most lenders lend up to 80% of a purchase, so plan on about 20% down.
What are the terms of a DSCR loan?
Typically 30-year fixed or adjustable rates with interest-only options. Kiavi, for example, offers 30-year fixed and 5/1 and 7/1 ARMs with no prepayment penalty after year 3.