A jumbo DSCR loan in Burlington is rarely a single-family house. Lakefront homes in Shelburne and South Burlington sell for jumbo prices, but their rents seldom carry jumbo payments. The buildings that do are well-located six- to eight-unit properties near downtown, UVM and the medical center.
In short: LendingStreet offers jumbo DSCR loans of about $1.5M to $5M+ on high-value 1-8 unit rentals in Burlington and Chittenden County, qualified on rent with no W-2s or tax returns. In this market, jumbo balances usually come from larger small apartment buildings, portfolios, or occasionally a high-end home with strong rent. Larger balances get more review and max LTV can be lower; it varies by program.
Burlington's prices are high for Vermont, and a well-located eight-unit building near downtown or the Hill Section can reach jumbo territory. Portfolios of several duplexes and triplexes also reach that size. High-end homes on the lake in Shelburne, South Burlington and the New North End are mostly owner-occupied; as rentals, their rents rarely support a payment that large.
Buildings of this size near downtown and the hospital tend to have strong, steady tenant demand, which helps support both value and rent. Portfolios built up over decades by local owners are another common source of large-balance loans in the county.
| Source | Typical property | Rent support |
|---|---|---|
| Larger small apartment building | 6-8 units near downtown, UVM, hospital | Strong, many comparable leases |
| Portfolio | Several 2-4 unit houses | Combined rent |
| High-end home | Lakefront or large home in Shelburne or South Burlington | Limited comparable leases |
Burlington rentals pay Vermont's non-homestead education rate plus the city's municipal rate. On a $2M+ building, that tax bill is often the largest line in the payment after principal and interest. Use the assessor's value and current rates, and remember that reappraisals can move the number.
Large buildings also carry big operating costs that sit outside the DSCR payment, such as heat in buildings with a shared boiler, common electric, snow removal and turnover. Keep a full operating budget so a healthy ratio does not hide thin cash flow.
This example is illustrative and not a quote. An investor buys an eight-unit building near downtown Burlington for $2,250,000. Units rent for about $2,150 each, so combined rent is $17,200. Taxes at the non-homestead rate are $3,300 a month and insurance is $750.
At 70% LTV the loan is $1,575,000, estimated principal and interest is about $10,744, the payment is about $14,794 and the DSCR is about 1.16x. At 68% LTV the loan is $1,530,000, the payment is about $14,487 and the ratio is about 1.19x. Taxes are a large share of the payment, which is why leverage on large Burlington buildings tends to be moderate.
Your own numbers will depend on the price, the actual rent roll, the tax bill for that parcel and the insurance quote. A building with below-market rents may need lower leverage at purchase and a refinance later once rents reach market.
If you plan to raise rents as leases turn, model the loan on today's rents and treat the increases as upside rather than counting on them to clear the ratio.
| Item | 70% LTV | 68% LTV |
|---|---|---|
| Loan amount | $1,575,000 | $1,530,000 |
| Estimated principal and interest | $10,744 | $10,437 |
| Taxes and insurance | $4,050 | $4,050 |
| Total payment | $14,794 | $14,487 |
| DSCR at $17,200 rent | 1.16x | 1.19x |
Renting a high-end home in Shelburne or on the lake can work for executive tenants, but the rent rarely covers a jumbo payment at typical leverage. Expect lower LTV and close review of comparable leases. Short-term rental income is not a fallback inside Burlington, where the rules favor owner-hosted stays; resort areas elsewhere in Vermont are a different market.
Executive rentals near the lake can still make sense as part of a broader portfolio, where stronger cash flow from multi-unit buildings balances a home with a lower ratio.
Eight-unit buildings face state fire safety rules, Burlington's rental registry and inspections, and Vermont's lead law if built before 1978. Lenders on large balances want to see clean compliance. Have registration, inspection results and lead filings ready, along with a list of recent capital work.
Expect the appraiser to look closely at the rent roll, unit sizes and recent capital work. A building with updated heating, wiring and windows usually supports a stronger value and makes the insurance quote easier.
Investors who have assembled several Burlington duplexes and triplexes often find that a blanket portfolio loan suits them better than a single jumbo loan. Five or more properties can share one loan with release provisions, qualified on combined cash flow.
Jumbo loans still qualify on rent, with a 620 minimum credit score and 30-year terms available. Expect more reserves, closer review and sometimes lower maximum LTV. Pricing on large balances is set case by case.
Release provisions set how much must be paid down to remove one property from a blanket loan when you sell it. Read them before you sign, especially if you plan to sell a building in the next few years.
On large balances, lenders look at your track record managing multi-unit property. Owners who have run several Burlington buildings, handled the student lease cycle and kept up with city inspections show that the rent roll is sustainable.
Reserves matter too. Larger loans usually call for more months of payments in the bank, and old buildings benefit from a separate repair reserve for boilers, roofs and porches. Planning for both makes the file stronger and the building easier to hold.
Investors with experience running multi-unit buildings in the city usually see the smoothest approvals on large balances.
Send the rent roll, property details and your target leverage through the form below or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property. See our Vermont jumbo page for statewide notes.
Yes. Eight units is residential for our programs, and a building priced well above $1.5M can fit a jumbo DSCR loan if the rent supports it.
Taxes at the non-homestead rate are a big share of the payment, and larger balances often have lower maximum LTV.
Possibly, but rent rarely supports a jumbo payment on a single home. Expect lower leverage and close review of comparable leases.
Generally not for investor-owned whole units, given the city's rules. Check the current ordinance.
No. Jumbo DSCR loans qualify on rent, with credit and reserves reviewed.
Yes. Purchase, rate-and-term and cash-out are available, with leverage that varies by program.
Yes. A portfolio of five or more rentals can be combined into one loan.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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