Lexington is a moderate-cost market, so a single rental that needs a $1.5M+ loan is unusual here. When jumbo DSCR loans do happen, they tend to involve a newer eight-unit building, one of the luxury homes in the city's most established neighborhoods, or several properties financed together.
In short: LendingStreet offers jumbo DSCR loans from about $1.5M to $5M+ on high-value 1-8 unit rentals in Lexington and central Kentucky, for purchase, rate-and-term and cash-out. Loans qualify on property rent with no W-2s or tax returns. Larger balances get more review and maximum LTV can be lower; it varies by program.
In most of the metro, even a well-located fourplex sells for well under $1M, so the loan never reaches jumbo size. The cases that do are a newer or fully renovated six- to eight-unit building near campus, downtown or in Hamburg; an estate-scale home in Chevy Chase, Ashland Park, Lansdowne or along Tates Creek Road leased to an executive or physician; or a group of rentals refinanced together.
Horse farms and large acreage are part of the Lexington picture, but working farms and agricultural land are not residential rentals and do not fit these programs.
Because these properties are rare, appraisers may have few direct comparables. For multi-unit buildings, the income approach usually carries the most weight. For luxury homes, comparable leases are often thin, so bring any recent signed leases on similar homes you can find.
This example is illustrative and not a quote. A newer eight-unit building priced at $2,400,000 rents for $1,700 a unit, or $13,600 a month. At 65% LTV the loan is $1,560,000, estimated principal and interest is about $10,642 and with taxes and insurance the payment is about $13,692, for a DSCR of about 0.99x. At 60% LTV the loan is $1,440,000, the payment about $12,873 and the DSCR about 1.06x.
A luxury home priced at $1,900,000 that leases for $8,500 a month tells a different story. At 65% LTV the loan of $1,235,000 carries a payment of about $10,775 and a DSCR of about 0.79x.
| Item | Eight-unit at 65% | Eight-unit at 60% | Luxury home at 65% |
|---|---|---|---|
| Loan amount | $1,560,000 | $1,440,000 | $1,235,000 |
| Total payment | $13,692 | $12,873 | $10,775 |
| Monthly rent | $13,600 | $13,600 | $8,500 |
| DSCR | 0.99x | 1.06x | 0.79x |
Even the building is close to the line at 65%, which is typical at the top of a moderate-cost market: new construction sells for prices based on replacement cost, while rents are capped by what local tenants pay. Dropping to 60% LTV gives the building a workable ratio. The luxury home would need a much larger down payment, a sub-1.0 DSCR program, or both. Neither is a flaw in the property; it is how rent and value relate at this price level in Lexington.
The practical takeaway is to test the ratio at several loan amounts before you make an offer. If the building only works at 60% LTV, you will know exactly how much cash the deal needs, and you can decide whether the return still justifies it.
For many Lexington investors, the more practical route to a large loan is a portfolio. A blanket portfolio loan refinances five or more rentals under one loan with one payment, qualifying on combined cash flow and with release provisions when you sell one. A portfolio of brick ranches and fourplexes with strong rent-to-value ratios can support a larger total loan than a single high-priced building.
Release provisions let you sell one property without refinancing the rest, which keeps a portfolio flexible as you trade up or exit specific neighborhoods. Pricing on a portfolio is set on the whole group.
Expect a deeper file than a standard DSCR loan.
Larger loans usually require more reserves, and those funds must be in accounts the lender can verify. On a payment above $10,000 a month, several months of reserves is a meaningful sum, so plan where it will sit before you apply.
The Fayette County PVA assesses at fair cash value, and a sale at a high price can lead to a higher assessment. Budget taxes on your purchase price. For newer buildings, insurance is often more favorable than on older properties, though storm and hail exposure still matter in central Kentucky. On a large balance, small differences in these costs move the ratio, so get quotes early.
Some luxury homes near Keeneland and the horse farms earn strong nightly income during race meets and major events. Lexington regulates short-term rentals through permits, with tighter rules for unhosted rentals in residential zones. Our STR program can qualify on projected revenue on some programs where nightly rentals are permitted, but confirm the property's eligibility with the city first.
Ask your insurer about roof age and wind and hail deductibles on any large building.
Owners who built or bought a newer building years ago sometimes reach jumbo size through a cash-out refinance as values rise. Cash-out goes up to 75% LTV, often lower on large balances, and the rent must still clear the program minimum at the new payment. Rate-and-term refinances are also available to replace construction or bridge debt.
If the building was financed with a construction loan, refinancing into a long-term DSCR loan once it is leased is often the natural next step, and the rent roll at that stage drives the sizing.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, value, rent roll and target loan through the form below or call (877) 298-1001. For statewide notes, see our Kentucky jumbo DSCR page.
Sometimes. They usually involve a newer 5-8 unit building, a luxury home, or several properties financed together, since most single rentals here sell well under jumbo size.
Roughly $1.5M to $5M+ on a 1-8 unit rental.
Rent rises more slowly than price at the top of the market, so a large loan on a luxury home is hard to cover with long-term rent alone.
No. Working farms and agricultural land are not residential rentals under these programs.
Our DSCR programs have no stated maximum. Larger balances get more review and pricing is set case by case.
It varies by program and loan size, and larger balances generally require more.
Yes. A blanket portfolio loan can include five or more rentals, qualifying on combined cash flow.
No. The loan qualifies on rent. We review credit, assets and reserves.
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