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Jumbo DSCR · Des Moines

Jumbo DSCR Loans in the Des Moines Metro

Des Moines is not a market where a single rental house often needs a $1.5M loan. When an investor here does need a jumbo balance, it is usually for a newer eight-unit building in the suburbs, a rare high-end home, or several properties financed together.

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In short: LendingStreet offers jumbo DSCR loans of about $1.5M to $5M+ for purchase, rate-and-term and cash-out on high-value 1-8 unit rentals, including in the Des Moines metro. The loan qualifies on rent, with no tax returns, though larger balances get more review and maximum LTV can be lower, depending on the program. In Des Moines, most jumbo files are newer 5-8 unit buildings or portfolios rather than single homes.

What counts as jumbo here

Jumbo DSCR loans start around $1.5M. With typical Des Moines prices, a single-family rental rarely gets there. That is not a problem; it just means the jumbo conversation in this market is about different properties than it would be in a coastal city.

If your loan is in the $500K to $1.5M range, a standard DSCR loan may fit better, and our Des Moines DSCR page covers it.

Investors from higher-cost markets sometimes ask about jumbo financing for a Des Moines purchase because they are used to larger loans. Here, a $600,000 loan can buy a building that would cost several times more on the coasts, so start with the property and let the loan size follow.

Properties that reach jumbo balances

These are the property types that most often need a loan of $1.5M or more in the metro.

A few properties straddle the line: a large building at a lower price may not need a jumbo loan at all, while a smaller building with high-end finishes might.

PropertyWhereWhat to expect
Newer 6-8 unit townhome or apartment buildingWaukee, Ankeny, Grimes, AltoonaStrong rents; new tax bill and any abatement
High-end executive homeWest Des Moines, Glen Oaks, Johnston, Polk City near Saylorville LakeFew comparable leases; rent harder to support
Several rentals togetherAcross the metroOften better as a blanket portfolio loan

Worked example: a newer eight-unit building in Waukee

This example is illustrative and not a quote. An investor buys a newer eight-unit townhome building in Waukee for $2,150,000. Each three-bedroom unit leases for $2,050, for $16,400 a month. Taxes are budgeted at $2,867 a month on the full purchase price, and insurance at $700.

At 70% LTV the loan is $1,505,000, with estimated principal and interest of about $10,267. The payment is about $13,834, and DSCR is about 1.19x. At 65% LTV the loan is $1,397,500, the payment about $13,100 and DSCR about 1.25x. Maximum LTV on a balance this size varies by program.

Townhome-style buildings with private entries and garages often draw longer-term tenants in the western suburbs, which helps the rent roll hold up.

Item70% LTV65% LTV
Loan amount$1,505,000$1,397,500
Estimated principal and interest$10,267$9,533
Taxes and insurance$3,567$3,567
Total payment$13,834$13,100
DSCR at $16,400 rentAbout 1.19xAbout 1.25x

What changes on a large balance

The basics stay the same: the loan qualifies on rent, the minimum credit score is 620, and LLC borrowers are standard. What changes is the depth of review. Expect higher reserve requirements, a closer look at the rent roll, and on some programs a second appraisal or a desk review.

Your experience owning similar properties matters more at this size. Bring a schedule of the rentals you own and how long you have owned them.

Pricing on large balances is set case by case.

Taxes on newer Iowa buildings

Some Iowa cities offer property tax abatement on new construction. If your building is under an abatement, the current tax bill may be far below what you will pay once it ends. We size the loan on a realistic bill, so ask the city or the assessor when the abatement expires and what the full tax will be.

Iowa also revalues property every two years, in odd-numbered years, and taxes are paid in arrears. On a large building, those timing details can move the escrow figures at closing by thousands of dollars.

For a brand-new building with no tax history, budget taxes on your purchase price at the full local levy. The first bill after completion is often the one that surprises buyers.

Appraisals with few comparable sales

Large buildings and high-end homes do not sell often in Des Moines. Appraisers may have to reach across suburbs or back in time for comparable sales, and the income approach carries more weight on multi-unit property. Provide the rent roll, leases, a list of recent improvements and any construction documents for newer buildings.

Expect the appraisal to take longer than on a house, and plan your contract dates around it.

Hail, roofs and insurance on big properties

Hail is a fact of life in central Iowa, and on an eight-unit building or a large executive home, the roof is a big number. Insurers look closely at roof age and material, and many policies carry percentage-based wind and hail deductibles. Get the quote and the deductible during your inspection period and include the premium in the ratio.

Newer buildings usually insure for less, but confirm the builder's warranty status and any open items with the city before closing.

One loan or a blanket over several rentals

If your jumbo balance comes from several properties rather than one building, a blanket portfolio loan is often a better fit. It covers five or more investment properties under one loan, qualifies on the portfolio's combined cash flow, and includes release provisions so you can sell one property without refinancing the rest.

A blanket loan can also mix property types, such as a few single-family homes and a small apartment building, as long as each property has 1 to 8 units.

Get a jumbo DSCR quote

Our investor loans are business-purpose loans on non-owner-occupied property. Send the property details, rent roll and the leverage you want through the form below, or call (877) 298-1001. Our Iowa jumbo page covers the rest of the state.

Bring a property schedule, a rent roll for each building and any existing loan statements, and we can compare a single jumbo loan with a blanket loan side by side.

Common questions

What is a jumbo DSCR loan?

A DSCR loan of about $1.5M to $5M+ on a high-value 1-8 unit rental, used for purchase, rate-and-term or cash-out, and qualified on rent.

Are jumbo loans common in Des Moines?

Not for single homes. In this market they usually involve newer 5-8 unit buildings, rare executive homes, or several rentals.

What LTV can I get on a jumbo DSCR loan?

It varies by program and is often lower on larger balances. We will show options at a few loan amounts.

My building has a tax abatement. How is that handled?

We budget on the tax bill after the abatement ends, or at least account for it, so the loan holds up when the full tax arrives.

Do I need tax returns for a jumbo DSCR loan?

No. The loan qualifies on rent, though reserves and experience get a closer look.

Can I use projected rent on a newly built building?

For a purchase, the appraiser can estimate market rent. Signed leases make a stronger file.

Should I use a blanket loan instead?

If the balance comes from five or more properties, a blanket loan may give you one payment and portfolio pricing.

Can I cash out on a jumbo loan?

Yes. Jumbo DSCR loans can be used for cash-out, with maximum LTV that varies by program.

Jumbo DSCR loans in IowaJumbo DSCR loansDes Moines 5-8 unit DSCR loansBlanket portfolio loans in IowaDSCR loans in Des MoinesDSCR loans from $500K to $1 million

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