A $1.5 million rental is not a common thing in Durham. Most single-family rentals here sell for a fraction of that. When an investor does need a jumbo DSCR loan in Durham, it is usually for a new or renovated small apartment building, a large historic home near Duke, or a cash-out on a building that has appreciated for years.
In short: LendingStreet offers jumbo DSCR loans in Durham from about $1.5M to $5M+ for purchases, rate-and-term refinances and cash-out refinances on high-value 1-8 unit rentals. Loans qualify on the property's rent with no W-2s or tax returns and a 620 minimum credit score. Larger balances get more review, and maximum LTV can be lower; it varies by program.
In a market where most rental homes sell well under $1M, a jumbo balance usually signals a specific kind of property. These are the situations we see most often.
| Property | Where | Why the balance is large |
|---|---|---|
| New 6-8 unit infill building | Lots near downtown zoned for small multi-unit | New construction cost and unit count |
| Renovated historic apartment house | Trinity Park, Morehead Hill, near Ninth Street | Unit count plus restoration value |
| Large executive home | Hope Valley, Forest Hills, Duke Forest | Lot size and finish level |
| Cash-out on a long-held building | Close-in neighborhoods that appreciated | Value has grown well past the original loan |
Some large homes in Hope Valley, Forest Hills and the Duke Forest area lease to senior Duke Health physicians, faculty and corporate relocations, often for a year or two at a time. The rents are high, but the pool of tenants is small and the homes can sit vacant between leases.
Appraisers may find few comparable leases at this level, which makes rent support harder. If you are buying a large home as a rental, bring any signed leases on similar homes and expect the ratio to be tighter than on a smaller rental. A large home can still work; it just needs realistic numbers.
Large homes near Duke also attract visiting faculty and medical families on furnished mid-term leases. Those rents can be strong, but for a jumbo DSCR loan we generally need rent that can be supported by leases or the appraisal, so document any history carefully.
This example is illustrative and not a quote. An investor buys a newly completed eight-unit building on an infill lot for $2,150,000. Each two-bedroom unit leases for about $2,050, for gross rent of $16,400 a month. Taxes on the new assessment are budgeted at $1,550 a month and building insurance at $900.
At 75% LTV the loan is $1,612,500 and the DSCR is about 1.22x. At 70% LTV the loan is $1,505,000, estimated principal and interest is about $10,267, the total payment is about $12,717 and the DSCR is about 1.29x. At 65% the DSCR rises to about 1.37x.
On a balance this size, the program's maximum LTV may be the deciding limit rather than the ratio, so the investor should plan for the lower leverage scenarios.
| Item | 75% LTV | 70% LTV | 65% LTV |
|---|---|---|---|
| Loan amount | $1,612,500 | $1,505,000 | $1,397,500 |
| Estimated principal and interest | $11,000 | $10,267 | $9,533 |
| Taxes and insurance | $2,450 | $2,450 | $2,450 |
| Total monthly payment | $13,450 | $12,717 | $11,983 |
| DSCR at $16,400 gross rent | About 1.22x | About 1.29x | About 1.37x |
A newly built building is assessed at its completed value, and Durham County's most recent revaluation raised values across many central neighborhoods. On a jumbo balance, a few hundred dollars a month in taxes moves the ratio. Use the full current assessment, or for new construction an estimate based on your purchase price, rather than a land-only bill from before the building was finished.
Insurance on a multi-unit building or a large historic home is also higher than on a typical rental. Get a real quote early.
The basics stay the same: qualification on rent, LLC borrowers, 30-year terms available and a 620 minimum credit score. What changes is the level of review. Expect more scrutiny of rent support, higher reserve requirements and, on some programs, a second appraisal or a more detailed valuation review.
Pricing on large balances is set case by case. Clean leases, a strong rent roll and documented experience help.
If your large balance comes from owning many Durham rentals rather than one expensive building, a blanket portfolio loan may be a better tool. It combines five or more properties under one loan, qualified on combined cash flow, with release provisions when you sell one.
Many Durham investors with eight or ten bungalows near Duke use a portfolio loan for exactly this reason: no single property needs a jumbo loan, but the total balance is large.
A portfolio loan can also include rentals in Raleigh, Chapel Hill or other Triangle towns, and on some programs properties in more than one state. Compare the pricing and release terms against separate DSCR loans before deciding, since keeping each property on its own loan gives more flexibility to sell or refinance one at a time.
A long-held small apartment building near Duke, bought years ago, can now support a balance well above $1.5M. A jumbo cash-out can turn that equity into funds for the next project while keeping the building. Cash-out is capped at 75% LTV, and on large balances the program maximum is often lower, so the rent test and the program limit both matter.
A jumbo rate-and-term refinance is common after a new building is finished and leased, paying off the construction loan with a long-term loan qualified on the new rent roll. Have the certificate of occupancy, signed leases for each unit and the first months of operating history ready, since appraisers give more weight to actual collected rent on new buildings.
Send the address, price or value, rent roll, taxes and insurance quote, and your target loan amount. We will show you the ratio at several loan sizes. Use the form below or call (877) 298-1001.
Roughly $1.5M to $5M+ on a single 1-8 unit rental, for purchase, rate-and-term or cash-out.
Not very. Most Durham rentals need smaller loans. Jumbo balances here usually mean a new or renovated small apartment building, a large executive home or a cash-out on a building that has appreciated.
It varies by program. Larger balances often have lower maximum LTV than the 80% available on standard purchases.
No. It qualifies on the property rent. Expect higher reserve requirements and more review than on a smaller loan.
Yes, up to 75% LTV or lower depending on program and balance, with the rent covering the new payment.
If the value is in one building, a jumbo DSCR loan fits. If it is spread across five or more rentals, a blanket portfolio loan may be simpler.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
It depends on the program and how well the rent is documented. Signed leases and an appraisal that supports the rent are key. Many large-home files are underwritten on 12-month lease rent.
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.