Frictionless Financing for Your Next Rental

In a market where interest rates are unpredictable, property values are plateauing, and capital is harder to come by, smart real estate investors aren’t pulling back—they’re refining their strategies.

Upright Lending’s DSCR loan product is built for portfolio-minded investors seeking long-term leverage without short-term friction. Whether you’re converting a flip to a hold, refinancing out of a bridge loan, or acquiring a turnkey rental, this product adapts to the real-world complexity of your deals.

A Seamless Transition from Short-Term to Long-Term

For returning Upright Lending customers, your DSCR loan is already halfway done. We keep your previous loan files on hand, making it easy to roll into long-term financing with minimal lift.

Already covered:

• Entity & Individual Borrower Docs, including background, credit & experience
• Property-level diligence and verified purchase & rehab or build costs
• Historical valuations & title

All you need:

• Current bank statements
• Lease Agreements
• Landlord Insurance
• New Valuation
• Updated Title

Oh, and we can take care of the Verification of Mortgage and payoff statement requirements. This makes the transition from short-term to long-term capital faster, cleaner, and cheaper, because we've already done the heavy lifting together. 

Built for Real-World Investing

We designed this DSCR product for the way investors actually operate—not idealized spreadsheets. That means:

• Delayed purchases allowed (for free-and-clear, cash-bought properties)
• Interest-only option available (10 years IO, amortizing after)
• Cash-out allowed (up to $1.5M loan, $500K max cash to borrower)
• No income verification required—just property performance
• Available on 1-8 unit properties, including mixed-use if resi > 50% of sqft and income
   

Program Overview at a Glance

FeatureDetailsMinimum FICO (median of 3 bureaus)640Maximum Loan Amount$3M single asset; $5M portfolioMaximum LTV80% purchase & rate/term, 75% cash-outMinimum DSCR0.75x, 1.0xfor top-tier leverageInterest-Only Option10 Years IO availablePrepay Options5-year (best rate), 4, 3, 2 or 1-yearor buyoutOrigination Fee for Returning Customers1.5% Standard

Nuances to Know

How DSCR Is Calculated.  If your property is leased, we use the lower of your appraiser’s market rent estimate and the actual lease amount. If it’s vacant, we use 90% of the market rent figure from the appraisal.  

What’s Included in the DSCR Payment Estimate: To calculate your debt service coverage ratio, we divide your qualified rents by your housing expenses. Here, we include:

• 1/12th of annual property taxes
• 1/12th of homeowners' & flood (if applicable) insurance premiums
• 1/12th of HOA dues (if applicable)

 Homeowners insurance must cover either the loan amount or the estimated replacement cost—whichever is less—and provide at least 6x monthly rent coverage. Separately,  property taxes will be pulled from the county assessor.  For new construction or full renovations, we have to anticipate where taxes are going to be once the property is reassessed. To do this, we obtain an estimate of reassessed property taxes from the title company. If they cannot provide it, we estimate future taxes based on the appraiser's market value and the local county tax rate.

Prepaid Interest Structure: At closing, we collect three months of prepaid interest—this, along with all costs & prepaid expenses, can be rolled into any loan, even if not a cash-out refinance, if your LTV allows. While this could negatively affect pricing if your LTV hits a higher pricing tier, it also means no payments are due for as long as 150 days post-close.

For example, closing in June means:

• Stub interest for June is collected at close
• July, August, and September interest is prepaid
• With interest always paid in arrears, your first payment wouldn’t be due until November

So… What About Rates?

We lead with clarity, not gimmicks. Rates today begin in the low-6% range. For example, a borrower with: 

• FICO 780+
• Purchase loan
• DSCR > 1.20
• LTV ≤ 60%
• Standard 5-year stepdown prepay

…would qualify for our best pricing, currently at 6.125%. Interest rates are subject to change and typically track with broader market benchmarks—most notably the 10-year Treasury yield, which serves as a common indicator for long-term mortgage rate trends.

From there, adjustments are made based on:

• FICO: Tiers adjust every 20 points down to 640
• LTV: Best pricing at 60%, adjustments every 5% up
• DSCR: ≥1x is required for high LTV; minimum accepted is 0.75x
• Prepay: Longer lock (5yr stepdown) = better pricing; Buying out the penalty  = higher rate
  

You’re in control. Select the structure that aligns with your strategy and risk tolerance.  

Next Step: Start the Conversation

If you’ve borrowed from us before, your path is fast and clear.

If you’re new to Upright, we’ll walk you through how to leverage our DSCR product to build stable, cash-flowing rental portfolios.

Start your application now.