DSCR Loans in Georgia

Qualifying for investment property financing can be difficult, but DSCR loans in Georgia provide a useful alternative for real estate investors. Learn more about Georgia DSCR loans and whether this is the right loan solution for you.

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Self Employed
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VA Eligible
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Real Estate Investor
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Other
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What is the loan purpose?



Purchase
A purchase loan can be used to buy a home.


Refinance
A 'rate and term' refinance allows you to improve the terms of your existing mortgage by lowering the monthly payment. A 'cashout refinance' allows you to convert equity into cash.


Home Equity
A home equity loan or line of credit is a 2nd mortgage that allows you to convert equity to cash without having to touch your existing 1st mortgage.

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    Areas We Serve

    Griffin Funding provides DSCR loans to borrowers throughout the state, including the following areas:

    • Atlanta
    • Athens
    • Johns Creek
    • Roswell
    • Savannah
    • Augusta
    • Columbus
    • Macon
    • Sandy Springs
    • Marietta
    • Alpharetta

    What Are DSCR Loans and How Do They Work in Georgia?

    A DSCR loan in Georgia allows real estate investors to qualify for financing based on a property’s rental income rather than personal income. Lenders use the debt service coverage ratio (DSCR) — which measures a property’s rental income versus its debt obligations — to determine eligibility. These loans are ideal for investors, landlords, or self-employed borrowers looking to refinance or purchase rental properties without traditional income verification.

    DSCR loans are non-QM loans, which means you don’t have to go through the typical mortgage qualification process to secure them. Normally, you’d have to provide information such as:

    • Tax returns or pay stubs
    • Employment verification/history
    • Proof of personal income or assets

    However, a DSCR loan doesn’t take a borrower’s personal income into account and instead focuses on the income-generating potential of the property. This also means that DSCR loans in Georgia can only be used for investment or rental properties, not primary residences.

    How Do You Calculate DSCR?

    Calculating your DSCR is easy with our DSCR calculator. This valuable tool can help investors quickly estimate their property’s DSCR and gain insights into their eligibility for DSCR loans.

    The DSCR formula is as follows:

    Annual Rental Income ÷ Annual Mortgage Payments = Debt Service Coverage Ratio

    To clarify even further, here’s a step-by-step breakdown of how we calculate DSCR:

    1. The first step is figuring out your annual rental income. To do this, we use lease agreements and an appraiser who completes a rent schedule on Fannie Mae Form 1007. We take the lower of the two numbers and use that as your rental rate. Instead of using an appraiser, you can also provide a 12-month history of rental income.
    2. Once we know your annual rental income, we calculate your annual debt. Your annual debt is the principal, interest, taxes, insurance, and HOA payments you make throughout the year.
    3. After we have both numbers, we’ll divide your annual rental income by your annual debt to calculate your DSCR. A DSCR above 1 indicates that your annual rental income exceeds your annual debt.

    For individuals with a DSCR too low to secure a loan, asset-based loans and other non-QM loans are available.

    Download the Griffin Gold app today to use the DSCR calculator and other tools to assess your property’s DSCR and other financial factors.

    Think you qualify for a loan? Contact us today to find out!

    Contact Us

    DSCR Calculation Example

    If you’re still not quite sure how DSCR is calculated, here’s a real-world example that can help clear up any confusion.

    Let’s say you have an annual rental income of $50,000, but it costs you $40,000 each year to keep up with loan payments, taxes, and insurance. In this case, you would calculate your DSCR by dividing $50,000 by $40,000, which will leave you with a DSCR of 1.25. This means that your rental income is high enough that you can make good on your annual debt and still have money left over at the end of the year.

    As we mentioned previously, there are other types of non-QM loans you can apply for if your DSCR is too low. Options such as bank statement loans and asset-based loans can be good options for borrowers looking for alternative ways to verify their income.

    What Are the Benefits of DSCR Loans in Georgia?

    Whether you’re expanding your rental portfolio or purchasing your first investment property, a DSCR loan offers the flexibility and efficiency you need. Key benefits of Georgia DSCR loan programs include:

    • No income or employment verification required
    • Faster approvals and shorter closing times
    • Competitive interest rates for qualified investors
    • Loan amounts of up to $20,000,000
    • No limit on the number of properties financed
    • Ideal for self-employed borrowers and real estate investors

    DSCR Loan Requirements in Georgia

    DSCR loans are designed for real estate investors looking to finance income-generating rental properties. DSCR loans can’t be used to purchase owner-occupied homes, so home buyers interested in purchasing a place for themselves will need to consider one of our other non-QM loans instead.

    Potential borrowers should familiarize themselves with the following DSCR loan requirements in Georgia:

    • Property must be non-owner-occupied. Only rental or investment properties are eligible.
    • Minimum DSCR threshold. Most lenders require a DSCR of at least 1.0, though a higher ratio may improve loan terms. Griffin Funding is able to offer negative DSCR loans in some cases.
    • Minimum credit score. Typically 620 or higher, but stronger credit can lead to better rates.
    • Loan amounts of up to $20,000,000
    • Down payment of at least 15%. You must be able to put down at least 15% of the property’s purchase price to qualify for a DSCR loan in Georgia.
    • Proof of rental income or projections. Used to calculate DSCR in place of traditional income verification.
    • Title held in the borrower’s name or legal entity. Many investors use a DSCR investment loan in an LLC in Georgia for asset protection and ease of portfolio management.

    Applying for debt service coverage ratio loans in GA is easy thanks to Griffin Funding. If you want to find out more about DSCR loans, call us at (855) 394-8288 to get started today.

    What DSCR Do Lenders Look For?

    If you want to apply for a DSCR loan, it’s important to know what’s required of you. Griffin Funding can accept those with a DSCR of less than 1, while most other lenders consider 1.25 a good DSCR. In addition to ensuring you meet the DSCR requirement, you may also be asked to provide additional documentation throughout the application process to confirm all the information used for the calculation.

    Need Financial Assistance? See if you qualify for a loan today!

    Contact Us

    Get Started with Your Georgia DSCR Loan

    Securing funding to purchase rental properties can be a tough process, but DSCR loans can help investors do just that without W-2s, tax returns, and pay stubs.

    Whether you’re looking to expand your portfolio with a DSCR loan in Atlanta or begin your real estate investing journey elsewhere, we’re here to help.

    At Griffin Funding, we offer Georgia DSCR loans with competitive interest rates and down payments as low as 15%. Our DSCR loans are an advantageous option for helping you invest in Georgia real estate. To learn more about our DSCR loans in Georgia, call us at (855) 394-8288 or get started online today.

    Frequently Asked Questions

    Obtaining a DSCR loan in Georgia or any other location involves specific criteria and considerations. While DSCR loans are designed for income-generating properties, making them more accessible for investors, there are factors that may impact how easy it is to obtain these commercial loans in Georgia. Some considerations include:

    • Property evaluation: Commercial lenders in Georgia assess the income potential of the property, looking at factors such as rental income and operating expenses. The property’s ability to generate sufficient income to cover debt obligations is crucial.
    • Experience in property management: While it’s possible to start investing in real estate with a DSCR loan, some lenders prefer borrowers with experience in managing income-generating properties. On the other hand, other lenders like Griffin Funding work with investors of all types to ensure these loans are accessible whether you’re a new or veteran investor.
    • Documentation requirements: Like any loan, DSCR loans come with documentation requirements, primarily for the property. Being prepared with comprehensive financial documentation that demonstrates you meet Georgia DSCR loan eligibility requirements can streamline the application process.

    One of the advantages of DSCR loans is the flexibility they offer regarding the number of properties they allow you to invest in. Unlike some loan types that may limit the number of simultaneous loans, DSCR loans typically have no set limit on how many properties you can finance at once. Therefore, there’s no limit on how many times you use a DSCR loan.

    While DSCR loans have their advantages, there are also cons to consider, such as:

    • Larger down payments: Most lenders in Georgia require a down payment of at least 15% for DSCR loans.
    • Higher interest rates: DSCR interest rates can be higher than other loan types since DSCR loans and no doc loans in Georgia can potentially carry more risk for the lender.
    • For rentals only: Georgia DSCR loans are designed for rental properties. They can’t be used for primary residences or fix-and-flip projects.
    • Vacancies: Vacancies in rental properties can impact cash flow, and lenders don’t assess your ability to repay the loan based on these periods. Consistent cash flow is crucial to ensure you can repay your loan.

    Yes, we have DSCR refinance loans available in Georgia. Griffin Funding offers both rate-term refinance and cash-out refinance options for DSCR loans in Georgia.

    You can refinance your existing rental property using just its income, no W‑2s or tax returns needed. This helps you tap into property equity, lower your rate, secure better terms, or switch to an interest-only DSCR loan in Georgia, all while holding ownership in an LLC.

    Absolutely. Griffin Funding offers short-term rental DSCR loans in Georgia, which can finance Airbnbs and VRBOs in cities like Atlanta, Savannah, and Blue Ridge. We qualify based on projected rental income, leveraging tools like AirDNA, local market rent data, or historical booking records, instead of personal income.

    Typically, investors need a minimum credit score of 640–680 and a down payment starting around 15–25%, though specific program terms can vary. Griffin Funding’s DSCR programs focus on the property’s rental performance, not your income or tax documentation. These flexible underwriting guidelines are ideal for scaling investment portfolios in competitive Georgia markets.