Davenport and Bettendorf are not luxury rental markets, and a $1.5 million loan on a single house would be hard to support with rent here. But jumbo balances do come up on the Iowa side of the Quad Cities, usually for newer townhome buildings in Bettendorf, larger apartment-style 8-unit properties and investors who have outgrown smaller loans.
In short: LendingStreet offers jumbo DSCR loans from about $1.5M to $5M+ for purchase, rate-and-term and cash-out on high-value 1-8 unit rentals in Davenport, Bettendorf and Scott County. They qualify on the property's rent rather than your personal income. Larger balances get more review, and maximum LTV can be lower and varies by program. In this market, jumbo typically means a newer 5-8 unit building or a portfolio rather than one house.
Price levels on the Iowa side of the river mean a jumbo loan usually involves one of these:
Being clear about this saves time. If your goal is a single luxury home as a rental, expect the rent to support only part of a jumbo balance. If your goal is a newer multi-unit building, the rent is much more likely to carry the loan at moderate leverage.
This example is illustrative and not a quote. An investor buys a newer eight-unit townhome building in Bettendorf for $2,200,000. Each three-bedroom unit with an attached garage leases for $1,850, or $14,800 a month. Taxes are budgeted at $3,300 a month and insurance at $600.
A loan of $1,500,000, about 68% of the price, has estimated principal and interest of about $10,233 and a total payment of about $14,133, for a DSCR of about 1.05x. At 75% LTV the loan would be $1,650,000 and the DSCR would drop to about 0.98x, under 1.0x. The investor puts about $700,000 down to make the deal work, which is common at this size in the Quad Cities.
| Item | About 68% LTV | 75% LTV |
|---|---|---|
| Loan amount | $1,500,000 | $1,650,000 |
| Estimated principal and interest | $10,233 | $11,256 |
| Taxes and insurance | $3,900 | $3,900 |
| Total payment | $14,133 | $15,156 |
| DSCR | About 1.05x | About 0.98x |
A newer building in Bettendorf is valued by the Scott County assessor at its current value, and Iowa revalues every two years. Five or more units can be classified differently from one to four unit homes, so get the actual classification and current bill rather than estimating. Inside Davenport, the city assessor sets values.
On a property this size the tax bill can run well over $3,000 a month, and that, more than the rent, is what usually limits leverage.
If the building was recently completed, ask whether any tax abatement or exemption applies and when it ends. We budget on the full bill so the loan still works after any reduction expires.
Assessment appeals can lower a bill that seems out of line with comparable buildings, but plan the purchase on the current figure rather than a hoped-for reduction.
Jumbo loans get a closer look at the appraisal, reserves and your experience with similar properties. Expect questions about the rent roll, lease terms, vacancy history and who manages the property. A professional manager and clean operating statements make the review smoother.
Reserves matter. Several months of the full payment in the bank shows the loan can be carried through a vacancy or a large repair.
We also look at how the property compares with others in the area. If the building's rents are well above nearby properties, the appraiser and underwriter will want to see that they are sustainable, usually through lease history and comparable rentals.
Wind and hail deductibles on large Iowa policies are often a percentage of the insured value, so a single storm claim can mean a large out-of-pocket cost. Read the deductible terms, not just the premium. Riverfront and low-lying property in the Quad Cities may need flood coverage, and that premium goes into the ratio. Bettendorf's bluff-top subdivisions are generally above the river's reach, but check the parcel.
Keep reserves that reflect that deductible exposure, not just the monthly payment.
Jumbo DSCR loans are available for all three. A purchase like the example above uses the lower of price or appraised value. A rate-and-term refinance can replace a construction loan on a newly finished building. A cash-out refinance can free equity from a building you own, though maximum leverage is typically lower on cash-out and seasoning varies by program.
Seasoning matters on cash-out. If the property was bought or finished recently, some programs lend on cost plus documented improvements rather than the new appraised value until a seasoning period passes.
If your building needs a loan under about $1.5M, our standard 5-8 unit DSCR program covers it. If you own several Davenport and Bettendorf rentals worth $1.5M or more together, a blanket loan can put them under one closing and one payment. Jumbo fits when a single high-value property carries the whole balance.
If some of your properties are on the Illinois side, those follow Illinois rules and may need separate handling.
Some investors also combine approaches: a jumbo loan on their largest building and a blanket loan on a group of smaller rentals. Tell us what you own and we can suggest a structure.
Send the address, price or value, rent roll and any existing loan details. Call (877) 298-1001 or use the form below to get a quote on your Quad Cities jumbo DSCR loan.
If you are unsure whether your property fits jumbo, 5-8 unit or blanket financing, send the details and we will suggest the best fit.
About $1.5M to $5M+ on a high-value 1-8 unit rental.
Not very. They usually involve newer multi-unit buildings or portfolios, not single houses.
It varies by program and is often lower on larger balances.
Yes, if the balance reaches jumbo size and the rent covers the payment.
No. The property's rent qualifies the loan, though reserves and experience get more review.
On large Iowa rentals, property taxes often drive the payment. Lower leverage is the usual fix.
Yes. Five or more rentals can go into a blanket portfolio loan.
Yes. We lend on high-value 1-8 unit rentals throughout Scott County.
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