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No-Ratio DSCR Loans: 75% LTV for STR & MTR Rentals
By Jason Taken · Principal, Jaken Finance Group
No-ratio DSCR loans fund midterm and short-term rentals at up to 75% LTV without a minimum DSCR — when market rents cap your leverage at other lenders.
No-ratio DSCR loans let investors finance rental properties at up to 75% LTV without meeting a minimum debt service coverage ratio — a fit for midterm rentals (MTR) and short-term rentals (STR) where actual income exceeds what market-rent appraisals support. Most DSCR lenders cap leverage on market rents, not what you actually collect.
Why standard DSCR loans fail STR and midterm operators
A DSCR loan normally qualifies on property cash flow: net operating income divided by the mortgage payment. Lenders want a DSCR of 1.0 to 1.25+ — meaning rent covers the debt with room to spare.
That math works cleanly on a long-term rental (LTR) with a 12-month lease at market rate. It breaks down when you run:
- Short-term rentals (Airbnb, VRBO, furnished) — income often 2x market rent but appraisers and underwriters use long-term market rent comps
- Midterm rentals (30–180 day stays) — corporate, travel nurse, or furnished corporate housing at premiums above LTR market
- New leases not yet in place — property cash-flows on day one but no executed lease to upload
As the video explains: if market rent is $2,500 but you collect $4,000, most lenders still underwrite to $2,500. Your leverage drops even though the asset performs.
That is the BiggerPockets question this video answers — and why a no-ratio DSCR program exists.
What is a no-ratio DSCR loan?
A no-ratio DSCR loan (sometimes called a no DSCR or no-ratio rental program) does not require a minimum debt service coverage ratio for approval.
| Standard DSCR | No-ratio DSCR |
|---|---|
| DSCR 1.0–1.25+ required | No minimum DSCR |
| Underwritten to market rent | Actual or program-specific rent treatment |
| Lower rate tier | Rate premium — higher risk on paper |
| Lease often required | Lease optional — provide if available |
| Typical max LTV 75–80% | Up to 75% LTV on this program |
Jaken Finance Group’s no-ratio program funds at up to 75% LTV without caring what the DSCR ratio calculates to on paper. If you have a lease, provide it. If you do not, that does not block the file.
The trade-off is explicit: no-ratio programs cost more in rate because the property may not debt-service under conventional market-rent assumptions — but the lender still funds based on asset value, exit strategy, and borrower profile.
See the full DSCR vs Hard Money vs Conventional comparison for how DSCR fits in your capital stack.
The market-rent cap problem (with numbers)
Here is the leverage gap investors hit on STR and MTR deals:
| Assumption | Market rent ($2,500/mo) | Actual STR/MTR ($4,000/mo) |
|---|---|---|
| Annual gross rent used | $30,000 | $48,000 (actual) |
| Lender uses | $30,000 | Often still $30,000 |
| DSCR at 7.5% on $200K loan | ~1.05 (tight) | Would be ~1.68 (strong) |
| Max LTV outcome | Capped or declined | Fundable on no-ratio program |
Standard DSCR lenders protect themselves by ignoring premium rent — even when your bank statements and STR history prove higher income. No-ratio DSCR bridges that gap for operators who already run profitable furnished or midterm inventory.
For broader DSCR benchmarks, see DSCR loan statistics and the investor reference comparison matrix.
Who should use a no-ratio DSCR loan?
Strong fits:
- STR operators in markets where nightly rates beat LTR comps (check short-term rental laws in your market first)
- Midterm rental investors — travel nurses, corporate housing, 30–90 day furnished stays
- Recent acquisitions without a lease in place yet but with documented rent history on similar units
- Portfolio builders scaling past the first 1–10 doors when standard DSCR math stalls on premium rent
Weaker fits:
- Turnkey LTR buys where market rent supports 1.25+ DSCR — standard DSCR loans will price better
- Negative cash flow spec — no-ratio is not a substitute for bad economics; it solves an underwriting methodology problem, not a losing deal
- First-time investors with no STR/MTR operating history — expect tighter review and higher rate tier
If you are running a BRRRR sequence, hard money or bridge funds the rehab leg; no-ratio or standard DSCR handles the permanent refi depending on achieved rent. See scale rental portfolio with DSCR loans.
Program terms (from the video)
Jaken Finance Group’s no-ratio DSCR program highlights:
- Max LTV: 75%
- DSCR requirement: None — no minimum ratio
- Lease: Provide if you have one; not required if you do not
- Rate: Higher than standard DSCR — reflects paper risk when market-rent DSCR is below 1.0
- Property types: Rental use cases where premium income exceeds market-rent underwriting (STR, MTR, and similar)
Exact rate, points, and reserve requirements depend on credit, property type, and location — submit a complete file for terms, not a phone-quote on half the information.
No-ratio DSCR vs hard money vs standard DSCR
| Product | Term | DSCR required | Best for |
|---|---|---|---|
| Standard DSCR | 30 years | 1.0–1.25+ | LTR, strong market-rent coverage |
| No-ratio DSCR | 30 years | None | STR, MTR, premium rent above market comps |
| Hard money | 6–24 months | N/A | Fix-and-flip, bridge, rehab |
No-ratio DSCR is permanent rental debt, not a flip tool. Hard money gets you in and out of a rehab; no-ratio DSCR holds the asset when standard DSCR math fails on market rent alone.
How to apply
- Model the deal on the DSCR calculator — compare market rent vs actual income scenarios
- Gather docs — property address, purchase price or refi payoff, rent history or STR performance if available, entity docs if borrowing in an LLC (investment property loans for LLC)
- Pre-qualify online or call (833) 264-7776 with the full picture — partial info produces wrong leverage quotes
We underwrite the full file before quoting terms. That diligence protects you from bad info on rate and LTV.
In this video
| Time | Topic |
|---|---|
| 0:00 | BiggerPockets question — STR and midterm rentals vs market rent caps |
| 0:15 | Example: $4,000 actual rent vs $2,500 market rent leverage cap |
| 0:28 | No-ratio DSCR program — up to 75% LTV, no minimum DSCR |
| 0:35 | Lease optional; rate premium explained |
| 0:45 | Call to action |
Full transcript
Saw a post on BiggerPockets and I figured I would answer the question here. Some of you investors go out and get midterm rentals or even short-term rentals that rent a lot higher than market rents. Now, some lenders use those market rents to cap your leverage. So, in cases where say the rental income is $2,500 for the market, but you’re getting $4,000, you’re going to be capped off that market rent by most lenders. We have a no ratio program that you can go as high as 75 LTV and we don’t care what the DSCR ratio is. If there’s a lease, you’ll provide it, but if there’s no lease, that doesn’t matter. The no ratio programs are a little more expensive as far as rate goes because the risk is higher because on paper the property doesn’t debt service, but we’ll still fund it. 75 LTV. Give us a call.
Ready to fund an STR or midterm rental when market rents cap your leverage? Pre-qualify for a DSCR loan · Submit a flip or rental scenario · (833) 264-7776
Full program details — LTV bands, pricing tradeoffs, and when no-ratio is the wrong tool — live on the no-ratio DSCR loans service page.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.
No-Ratio DSCR Loans: 75% LTV for STR & MTR Rentals — next step (2026)
Permanent 5.75%–10.5% DSCR sizes on executed lease rent with investor tax and insurance in NOI — not seller bills or STR pro forma.
Submit scenario · Pre-qualify · (833) 264-7776.