Richmond's big rentals sit in its historic core: tall Fan District townhouses cut into apartments, Church Hill rowhouses, and grand homes in Windsor Farms. A jumbo DSCR loan here usually means one of those buildings or several rentals at once.
In short: LendingStreet offers jumbo DSCR loans, about $1.5M to $5M+, on 1-8 unit rentals in Richmond, Henrico and Chesterfield, qualified on rent rather than tax returns. Jumbo balances here usually finance 5-8 unit buildings in the Fan, Museum District or Church Hill, high-end homes in Windsor Farms or the West End, or a portfolio. Richmond reassesses every year and charges Virginia recordation taxes at closing.
The Fan District and Museum District have three-story brick townhouses, many converted to four to eight apartments that lease to VCU staff, students and young professionals. Church Hill and Union Hill have restored rowhouses and small buildings, and Scott's Addition has newer apartments.
Windsor Farms, Westover Hills and the near West End hold the city's most expensive homes. In the counties, Short Pump in Henrico and Midlothian in Chesterfield have large newer homes that lease to relocating families.
| Area type | Examples | What a jumbo loan usually covers | Check first |
|---|---|---|---|
| Historic core | The Fan, Museum District, Church Hill | 5-8 unit converted townhouses | Historic review, unit legality |
| West End | Windsor Farms, Westover Hills, near West End | High-value single-family leases | Rent support, lower leverage |
| Suburban counties | Short Pump, Midlothian, Glen Allen | Executive homes, groups of newer rentals | HOA rules, county tax bills |
Rents in the Fan are solid, but a large converted townhouse also carries real taxes and insurance, so the ratio at full leverage can land close to 1.0x. Many investors choose a lower loan amount to keep the coverage comfortable, or pair the building with a sub-1.0 program.
Old buildings get a careful look from appraisers and underwriters. Expect questions about the legal unit count, separate meters, fire separation between units and the age of roofs and mechanical systems.
The City of Richmond reassesses real estate every year, so taxes track market value more closely than in places with long cycles. A purchase well above the current assessment will likely show up in a later notice. Henrico and Chesterfield also reassess annually and set their own tax levels.
Virginia charges a state recordation tax on deeds and deeds of trust, with an added local share, and a grantor tax usually paid by the seller. On a large purchase loan the recordation tax on the deed of trust is a meaningful buyer cost. Ask your settlement agent for exact figures.
This example is illustrative and not a quote. An investor buys a converted six-unit townhouse in the Fan for $2,000,000. The apartments rent for a combined $11,700 a month. City taxes are budgeted at $2,000 a month and insurance at $600.
The loan works out to $1,500,000 at 75% LTV, with estimated principal and interest of about $9,980. With $2,000 in taxes and $600 in insurance, the full monthly payment is about $12,580. Against $11,700 of combined monthly rent, DSCR is about 0.93x.
At 65% LTV the loan falls to $1,300,000, with estimated principal and interest of about $8,649 and a payment of about $11,249. The ratio rises to about 1.04x, above the 1.0x standard minimum.
| Line item | At 75% LTV | At 65% LTV |
|---|---|---|
| Value | $2,000,000 | $2,000,000 |
| Loan-to-value | 75% | 65% |
| Loan amount | $1,500,000 | $1,300,000 |
| Estimated principal and interest | $9,980 | $8,649 |
| Property taxes | $2,000 | $2,000 |
| Insurance | $600 | $600 |
| Total monthly payment | $12,580 | $11,249 |
| Combined monthly rent | $11,700 | $11,700 |
| DSCR | About 0.93x | About 1.04x |
Parts of Richmond fall in City Old and Historic Districts, where exterior changes generally need approval from the Commission of Architectural Review. That matters if your plan includes new windows, porches or rooftop additions on a Church Hill or Fan building.
Shockoe Bottom and other low areas near the James River can flood, and some parcels sit in mapped flood zones. Much of the housing predates 1978, so lead disclosures apply.
A jumbo DSCR file in the Richmond area is still a rent-based loan. There is no stated maximum, no tax returns, a 620 credit floor and LLC ownership is normal. Expect closer attention to the appraisal, the rent support and your liquidity, because one large property carries more risk than a small one.
In practice that means leverage that can sit below the program maximums, more months of reserves, and sometimes a second valuation. These limits vary by program. If the ratio comes in under 1.0x at the leverage you want, a sub-1.0 DSCR program or a lower loan amount are the usual fixes. Pricing on large balances is set case by case, after the appraisal and rent review.
Sometimes splitting the debt works better. Separate DSCR loans on each property keep each one independent, while a blanket loan on five or more Richmond rentals gives one payment and one closing, with release clauses so you can sell a property without refinancing the rest.
For a single large rental you already own, compare a cash-out refinance, capped at 75% LTV on standard programs, with a rate-and-term refinance. Each changes the payment, and the payment is what drives the ratio. Run both through the DSCR calculator before you choose.
Lenders move faster on jumbo files that arrive complete. Pull these together before you request terms:
Get a quote through the form below or call (877) 298-1001. We size the loan at more than one LTV so you can see the tradeoff between cash in and coverage. Our investor loans are business-purpose loans on non-owner-occupied property. Our Virginia jumbo DSCR page covers the statewide picture.
Yes. The City of Richmond reassesses annually, so a purchase price above the current assessment often shows up in a later notice. Budget taxes on your price.
Virginia recordation tax applies to the deed and the deed of trust, with an added local share, and the seller usually pays the grantor tax. Your settlement agent can give exact figures.
Not under these residential programs. Nine or more units is commercial. A 5-8 unit building qualifies for a DSCR loan on combined rent.
Not directly, but they affect what you can change on the exterior. If your rent plan depends on exterior work, confirm approvals first.
Yes. LLC borrowers are standard. You will usually sign for the loan personally as well, and the lender will review the operating agreement and ownership. Multi-member LLCs may need each major owner to sign.
Yes. Cash-out goes up to 75% LTV on standard programs, often lower on large balances, and the rent must cover the new payment. Seasoning varies by program, and some programs cap the loan at cost plus documented improvements early on.
No. A DSCR loan qualifies on the property's rent compared with the full monthly payment. You need a credit score of 620 or higher, reserves and entity documents if you buy in an LLC. Lenders also review the appraisal and rent support closely on large balances.
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