Louisville offers something many larger metros lost years ago: rentable homes and duplexes at prices where the rent can still carry the full payment. The lender you choose should qualify that rent directly and let you keep buying without a stack of tax returns.
In short: Our top pick for DSCR loans in Louisville is LendingStreet. We underwrite Louisville rentals on the property's rent, not your W-2s or tax returns, lend to LLCs as standard, and offer up to 80% LTV on purchases and up to 75% on cash-out refinances with 30-year terms. Loans start at $150,000 with no stated maximum, and we lend in all 50 states and DC, including across the river in Indiana.
LendingStreet makes business-purpose DSCR loans on 1 to 8 unit rentals throughout Louisville Metro and nearby Oldham and Bullitt counties, as well as in southern Indiana if your portfolio crosses the Ohio River.
The standard minimum DSCR is 1.0x, sub-1.0 programs exist for some files and the minimum credit score is 620. We look at rent, taxes, insurance and any HOA dues, and we can run the ratio at more than one loan amount so you can see the tradeoffs.
To get started, get a quote with the form below or call (877) 298-1001.
Well-known DSCR lenders include CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital. Compared scenario by scenario for investors in Louisville, KY, LendingStreet comes out as the stronger choice, and one application covers it.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| 5-8 unit building | LendingStreet | We treat 1-8 units as residential DSCR. Lima One and CoreVest state 1-4 unit eligibility for their rental loans. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
The Highlands, Germantown, Schnitzelburg, Crescent Hill and Clifton are known for older homes, including the shotgun and camelback shotgun houses that line many streets, plus duplexes and small apartment buildings. Old Louisville has large Victorian homes, many split into units, near the University of Louisville.
Suburban areas such as St. Matthews, Jeffersontown, Fern Creek and Okolona have brick ranches and newer subdivisions that rent to families. Shively, the South End and the West End offer lower purchase prices, where careful underwriting of rent and repairs matters most.
Jobs at the airport's large air cargo hub, auto assembly plants, hospitals and the university support steady rental demand across the metro.
Louisville investors commonly finance with a local bank, a local hard money lender, a national online DSCR lender or a private individual. Here is a side-by-side look for a long-term rental.
| Question | LendingStreet | Local bank | Local hard money lender |
|---|---|---|---|
| How is income verified? | The property's rent; no W-2s or tax returns | Usually personal income documents | Mostly the property and the plan |
| Can an LLC borrow? | Yes, it is standard | Sometimes | Often |
| Is a long-term fixed option offered? | Yes, 30-year terms | Varies | Rarely; loans are short-term |
| Max LTV on a purchase | Up to 80% | Varies | Varies |
| Max LTV on a cash-out | Up to 75% | Varies | Not a typical product |
| Minimum credit score | 620 | Varies | Varies |
| Help below 1.0x DSCR? | Sub-1.0 programs exist | Uncommon | Not applicable |
Kentucky assesses real property at fair cash value, and Louisville Metro tax bills are moderate compared with many metros. Rates still vary by school district and by small cities inside Louisville Metro, which levy their own taxes. Kentucky's homestead exemption is limited to owner-occupants who are 65 or older or disabled, so it rarely creates a big gap between a seller's bill and an investor's.
Kentucky charges a real estate transfer tax when a deed is recorded, plus recording and title costs. Check the Jefferson County PVA record for the current assessment, and confirm costs with your title company.
This example is illustrative and not a quote. An investor buys a Highlands duplex for $340,000. The two units lease for $1,350 and $1,300, for $2,650 a month. Taxes are budgeted at $285 a month and insurance at $150.
At 80% LTV the loan is $272,000. Estimated principal and interest on a 30-year term is about $1,856, the full payment is about $2,291 and DSCR is about 1.16x, comfortably above the 1.0x standard minimum.
| Item | Monthly amount |
|---|---|
| Loan amount (80% of $340,000) | $272,000 |
| Estimated principal and interest | $1,856 |
| Property taxes | $285 |
| Insurance | $150 |
| Total payment | $2,291 |
| Rent, two units | $2,650 |
| DSCR | About 1.16x |
Louisville Metro requires short-term rentals to register, and a non-host-occupied STR in many residential zones needs a conditional use permit, with a spacing buffer from other permitted STRs. That makes nightly rentals harder to add in popular neighborhoods such as the Highlands and Germantown.
Our short-term rental program can qualify on projected revenue on some programs, but only where the property can legally operate. Confirm permit status with Louisville Metro before you buy. Most Louisville DSCR loans are underwritten on 12-month leases.
Much of the close-in housing stock is more than 100 years old, so check foundations, roofs, wiring and sewer lines. The Ohio River floodwall protects much of the city, but some properties near Beargrass Creek and other streams sit in mapped flood zones. Kentucky also sees spring storms and tornado warnings, which affect wind coverage.
Get the landlord insurance quote and the flood determination during your inspection period, and include them in the DSCR calculation. Pre-1978 homes need lead-based paint disclosures to tenants under federal rules.
Put the same questions to every lender on your list:
Our top pick is LendingStreet. We qualify Louisville rentals on rent with no tax returns, lend to LLCs, offer up to 80% LTV on purchases and 75% on cash-out, and have 30-year terms.
Yes. We lend throughout Louisville Metro and the surrounding counties, and in all 50 states and DC.
Yes, if the loan amount is at least $150,000 and the rent supports the payment. Lower-priced homes can also fit a blanket portfolio loan once you own five or more.
Only if the property has the required STR registration and, for a non-host-occupied unit in many zones, a conditional use permit. Check with Louisville Metro first.
They can. Many small cities levy their own taxes on top of county and school rates, so check the exact address.
Yes. We lend in Indiana as well, so a portfolio on both sides of the river can stay with one lender.
It depends on your goals. Close-in neighborhoods often offer duplexes and strong rents, while suburbs offer newer homes with fewer repairs. We can run the ratio on both before you decide.
The standard minimum is 1.0x. Sub-1.0 programs exist for some files; call (877) 298-1001 to review yours.
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