A loan in the $500K to $1M range is where many investors move from starter rentals into higher-value homes, 2-4 unit buildings and small portfolios. The program is the same DSCR loan, but the file gets a closer look.
In short: LendingStreet finances rentals with DSCR loans between $500,000 and $1,000,000, qualified on the property's rent instead of your income. Purchases go up to 80% LTV and cash-out refinances up to 75%, with a 620 minimum credit score, LLC borrowers allowed and 30-year fixed options. At this size, expect higher reserve requirements, a more careful appraisal review and pricing that is set case by case as the balance grows. The rent has to cover a payment of roughly $3,200 to $7,000 a month before taxes and insurance, so the ratio usually decides the loan amount.
The basic test does not change. The lender divides the monthly rent by the full monthly payment (principal, interest, taxes, insurance and any association dues) and looks for about 1.0x or better. What changes is how much each assumption matters. A $200 miss on rent barely moves a $250,000 loan. On a $900,000 loan, the same miss can drop the ratio below the program minimum.
Lenders respond to that with a few tighter checks: more cash in reserve after closing, a closer read of the appraisal and rent schedule, and pricing that reflects the larger balance. None of these are unusual. They just mean a $750,000 file takes a bit more preparation than a $300,000 one.
Reserves are liquid funds left over after the down payment and closing costs. They show the lender you can carry the payment through a vacancy or a large repair. Requirements are usually counted in months of the full payment, and they tend to rise with the loan amount and with the number of financed properties you own.
Bank statements, investment account statements and retirement accounts can often count, though some programs only count part of a retirement balance. Funds should be seasoned or explained. If you plan to use cash-out from another property as reserves, tell the financing team early so the timing lines up.
A rental worth $700,000 to $1.3M often has fewer close comparable sales than a typical starter home. The appraiser may reach farther in distance or time, and the underwriter reads those adjustments carefully. Some programs ask for a second appraisal or a desk review once the balance crosses a set level.
The rent schedule (often Form 1007 for 1-unit homes or Form 1025 for 2-4 units) matters just as much as the value. On these loans, the appraiser's market rent number feeds straight into the ratio. If you have signed leases above market, ask how the program treats them, because some use the lower of lease or market rent.
Most loans in this range fall into three groups. Each has its own strengths and its own common snag.
Higher-value single-family rentals are easy to finance on value but can struggle on rent, because rent rarely rises as fast as price. 2-4 unit buildings often have the best rent-to-price ratio in this band. Small portfolios refinanced together on one or two loans can land here too, though five or more properties usually fit a blanket loan better.
| Property type | Typical strength | Common snag |
|---|---|---|
| Higher-value single-family | Strong comparable sales, wide buyer pool | Rent may not cover the payment at 80% LTV |
| Duplex, triplex or fourplex | More rent per dollar of value | Unit legality, older systems, higher insurance |
| Townhome or condo rental | Lower maintenance | Association dues count in the payment; condo review |
| Short-term rental | Qualifies on projected revenue (STR DSCR from 6.49%) | Projection and market support are reviewed closely |
| 2-4 rentals on separate loans | Each property stands alone | Five or more often fit a blanket loan better |
Here is principal and interest alone for loans across this band, on a 30-year fixed at three sample rates. Taxes, insurance and dues come on top. These figures are illustrative; your rate depends on credit, leverage, property and the market.
The useful takeaway is the step size. Every additional $100,000 borrowed adds roughly $630 to $700 a month in principal and interest at these sample rates. That is the extra rent the property needs to keep a 1.0x ratio.
| Loan amount | P&I at 6.5% | P&I at 7.0% | P&I at 7.5% |
|---|---|---|---|
| $500,000 | $3,160 | $3,327 | $3,496 |
| $600,000 | $3,792 | $3,992 | $4,195 |
| $700,000 | $4,424 | $4,657 | $4,895 |
| $800,000 | $5,057 | $5,322 | $5,594 |
| $900,000 | $5,689 | $5,988 | $6,293 |
| $1,000,000 | $6,321 | $6,653 | $6,992 |
This example is illustrative and not a quote. An investor buys a triplex for $850,000. The appraisal supports the price and a rent schedule of $1,950 per unit, or $5,850 a month in total. Taxes and insurance run about $1,000 a month.
At 75% LTV, the loan is $637,500 and the down payment is $212,500. At a sample rate of 7.25% on a 30-year fixed, principal and interest is about $4,349. The full payment is about $5,349, so the DSCR is about 1.09x, above the 1.0x standard minimum.
At 80% LTV the loan would be $680,000, principal and interest about $4,639, the full payment about $5,639 and the DSCR about 1.04x. Both versions clear 1.0x, so this investor can choose between less cash in and a stronger ratio. If the program in this example asked for six months of reserves on the 80% loan, that would be about $33,833 after closing.
Purchases allow up to 80% LTV. Rate-and-term refinances replace an existing loan, often a hard money or bridge loan after a renovation, without taking cash out. Cash-out refinances go up to 75% LTV and qualify on the new, larger payment, so cash-out lowers the ratio. The post-closing DSCR still has to clear the program minimum.
Seasoning on cash-out varies by program. Some allow cash-out with little or no seasoning. Others want several months of ownership or cap the loan at the purchase price plus documented improvements. If you bought recently and renovated, keep receipts and the scope of work.
Cash-out funds should go to business purposes, such as the next down payment, a rehab, reserves or paying off other debt on investment property. LLC vesting is standard on both purchases and refinances.
There is no single rate sheet for a $600,000 or $950,000 DSCR loan. Rates start from 6.125% for well-qualified borrowers, and larger balances are priced case by case. In general, a larger balance on its own does not mean a higher rate. What moves pricing is the combination of factors around it.
Leverage is usually the biggest lever. The same borrower will often see a better rate at 70% LTV than at 80%. A stronger ratio, a higher credit score and more reserves also tend to help. On the other side, short-term rentals, properties with few comparable sales and files with a ratio right at 1.0x tend to price higher. If you are near a pricing break, ask the financing team what a 5% change in down payment would do to the rate.
If the ratio lands a little under 1.0x, you have options. The simplest is a larger down payment, which shrinks the payment. A slightly lower rate, often available at higher credit scores or lower leverage, also helps. Some programs allow a DSCR below 1.0x with tighter terms, and no-ratio programs exist for files where rent does not support the payment at all.
Run the numbers before you write an offer. A DSCR calculator with the real tax bill and a written insurance quote will tell you which LTV the property can actually support.
A complete file moves faster at any size, and at this size missing items cause most delays. Send what you have, and the financing team will review the scenario and come back with 2–3 options.
Our DSCR loans start at $150,000 with no stated maximum. Loans in the $500K to $1M range are routine, and larger balances are reviewed case by case.
Not always. Rates start from 6.125% for well-qualified borrowers, and larger balances are priced case by case. Credit score, leverage, the ratio and the property type usually move the rate more than the balance alone.
It varies by program. Reserves are counted in months of the full payment and often rise with the loan size and the number of rentals you own. The financing team can tell you the requirement once it sees the scenario.
Some programs require a second appraisal or a desk review on larger balances. Many loans in this range close with one appraisal. It depends on the program and the property.
Yes. Short-term rental DSCR loans qualify on projected revenue and start from 6.49%. Expect the projection and local market support to be reviewed closely at higher balances.
Run both. The 80% option needs less cash, but the higher payment lowers the ratio and may raise the rate. If the 80% version leaves the DSCR right at 1.0x, the 75% version often prices better and leaves more room for a rent dip.
No. DSCR loans qualify on the property's rent. You will still provide credit, asset statements and entity documents.
Yes. LLC borrowers are allowed, and most investors at this loan size close in an entity.
You can put more down, look at a lower rate, or consider programs that allow a ratio below 1.0x or no ratio at all. Each comes with different leverage and pricing.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.