Georgia charges a tax most investors have never heard of until closing: the intangible recording tax on the loan itself. On a jumbo DSCR loan it runs into the thousands, and it sits alongside high metro Atlanta property taxes and coastal insurance.
In short: LendingStreet's jumbo DSCR loans cover about $1.5M to $5M+ on Georgia investment properties of 1 to 8 units, and they qualify on rental income rather than W-2s or tax returns. In Georgia, jumbo balances come from Buckhead, Brookhaven, Sandy Springs, Alpharetta and Milton homes, Savannah's historic district, St. Simons Island and Tybee, the North Georgia mountains and lakes, and 5-8 unit buildings in intown Atlanta. Property is assessed at 40% of value, and the intangible recording tax adds a cost based on loan size.
Metro Atlanta produces most jumbo rental loans. Buckhead, Ansley Park, Morningside, Virginia-Highland, Brookhaven and Sandy Springs have large homes near major employers, and north Fulton's Alpharetta, Milton and Johns Creek have newer executive homes in top school zones. Intown neighborhoods such as Inman Park and Grant Park have small multi-unit buildings.
On the coast, Savannah's historic district has townhomes and carriage houses, and St. Simons Island, Sea Island and Tybee Island have beach homes. In the north, Blue Ridge cabins and homes on Lake Lanier, Lake Oconee and Lake Burton draw seasonal renters from Atlanta.
| Area | What a jumbo balance usually buys | Main underwriting issue |
|---|---|---|
| Buckhead and north Fulton | Executive home on a 12-month lease | Fulton County taxes, HOA leasing caps |
| Intown Atlanta | 5-8 unit building | Combined rent, older systems |
| Savannah and the islands | Historic or beach home rented short term | STR zoning, coastal wind and flood |
| Mountains and lakes | Cabin or lake home rented nightly | Seasonal revenue, county STR permits |
Above $1.5M, Atlanta-area homes rent for a small share of their value, and HOA rules in many north Fulton and Forsyth communities cap the number of rentals. Read the covenants before you write an offer, because a leasing cap can make a home unfinanceable as a rental.
Outside metro Atlanta and the coast, jumbo balances usually mean a portfolio or a 5-8 unit building.
Georgia assesses property at a 40% assessment ratio, then applies county, city and school millage. Homestead exemptions and the new statewide floating homestead protections only apply to an owner's primary residence, so an investor's bill after purchase can be higher than the seller's.
Georgia also charges an intangible recording tax of $1.50 per $500 of the loan amount, capped at $25,000, plus a transfer tax of $1 per $1,000 of value. On a $1.5M loan, the intangible tax alone is about $4,500.
On the coast, wind and flood coverage drive the cost of owning a rental, and some islands have homes in high-risk flood zones. In metro Atlanta, severe storms, hail and falling trees on wooded lots are the usual claims, and older intown homes may have aging roofs or systems that affect pricing.
This example is illustrative and not a quote. An investor buys an Alpharetta home for $1,750,000 that leases for $10,800 a month. Taxes are budgeted at $1,550 a month, insurance at $400 and HOA dues at $150.
At 70% LTV the loan is $1,225,000 and estimated principal and interest is about $8,357, for a total monthly payment of about $10,457 and a DSCR of about 1.03x. At 60% LTV the loan is $1,050,000, estimated principal and interest is about $7,163, the payment is about $9,263 and DSCR is about 1.17x.
At 70% LTV, the intangible recording tax would be about $3,675 and the transfer tax about $1,750. Include both in your cash to close.
| Item | 70% LTV | 60% LTV |
|---|---|---|
| Purchase price | $1,750,000 | $1,750,000 |
| Loan amount | $1,225,000 | $1,050,000 |
| Estimated principal and interest | $8,357 | $7,163 |
| Property taxes | $1,550 | $1,550 |
| Insurance and HOA | $550 | $550 |
| Total monthly payment | $10,457 | $9,263 |
| Monthly rent | $10,800 | $10,800 |
| DSCR | About 1.03x | About 1.17x |
Atlanta requires a short-term rental license and limits how many it will issue to one host. Savannah caps and zones short-term vacation rentals, with tighter limits in many residential neighborhoods, and Tybee Island and mountain counties such as Fannin have their own permits. Check current rules before you rely on nightly income.
Some programs qualify a short-term rental on projected revenue. Most Atlanta jumbo loans are underwritten on 12-month leases.
The test is simple: does the property's rent cover its payment? Lenders add principal, interest, taxes, insurance and HOA dues, divide the rent by that total and generally want 1.0x or more. Some programs accept a ratio under 1.0x with other strengths in the file.
As the loan gets bigger, the file gets more scrutiny. Reserves are typically higher, appraisals are reviewed more closely and the highest LTVs are often reserved for smaller balances. Specific limits vary by program.
If one high-value property does not cover its payment at the leverage you want, there are other routes. Five or more rentals can go under one blanket portfolio loan, qualified on combined cash flow with one closing, one payment and release provisions when a property sells. A 5-8 unit building qualifies on the combined rent of every unit, with leverage that varies by program.
You can also bring more cash, take a smaller loan, or look at a sub-1.0 DSCR program. Buildings of 9 or more units are commercial; see our multifamily loans page for those.
Start with these items:
Our investor loans are business-purpose loans on non-owner-occupied property. Share the property details and your target leverage, and we will size the loan on realistic costs, show the ratio at a few loan amounts and lay out the options. Use the form below or call (877) 298-1001. For broader context, see our Georgia DSCR loans page.
A tax of $1.50 per $500 of the loan amount, capped at $25,000, charged when the security deed is recorded. On a $2M loan it is $6,000.
Homestead exemptions and floating homestead protections only apply to a primary residence. An investor's bill is based on the full assessed value.
Only if the property can legally operate as one. Savannah zones and caps short-term vacation rentals, so confirm with the city first.
Our DSCR programs have no stated maximum. Above about $1.5M, expect closer review, higher reserves and often a lower maximum LTV.
No. DSCR loans qualify on the property's rent. Expect a credit check with a 620 minimum and verification of your down payment and reserves.
Yes, with a cash-out refinance up to 75% LTV, frequently less on big loans. How long you must own the property first varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property only.
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