Updated Rates as of August 2026
Yes — DSCR loans are typically closed in an LLC or other business entity, not in a personal name. The property must be non-owner-occupied investment property.
You’ll need entity formation documents, operating agreement, and EIN. Personal guarantees may apply depending on program. Loan eligibility
Entity setup checklist before DSCR application
| Document | Notes |
|---|---|
| Articles of organization | Filed with state |
| Operating agreement | Signed; shows authorized signers |
| EIN letter | Entity tax ID |
| Certificate of good standing | Some lenders require within 30 days |
| Entity bank account | Separate from personal |
Most investor DSCR closes in LLC vesting — not personal name. Property must be non-owner-occupied.
LLC structure options for landlords
| Structure | Best for | Lending note |
|---|---|---|
| Single-property LLC | 1–5 doors | Standard DSCR close |
| Holding LLC + SPV per asset | 6+ doors | Guaranty from holding manager |
| Series LLC | Portfolio scale | Confirm lender accepts series |
Jaken Finance Group funds DSCR in entity vesting nationwide at 5.75%–10.5%, up to 85% purchase LTV. Investment property loans for LLC · should I hold in LLC
Personal guarantee — when it applies
| Structure | Guarantee |
|---|---|
| Single-member LLC | Often full PG from member |
| Multi-member LLC | Managing member PG common |
| Corporate entity | Authorized signer + PG |
PG does not mean personal income qualification — DSCR still sizes on property rent.
Titling timing — avoid transfer tax
Close directly in the LLC that will hold long-term. Retitling from personal name after close triggers transfer tax and reconveyance in many states — and may violate due-on-sale clauses.
Charging order protection · should I hold in LLC · Jaken Finance Group DSCR 5.75%–10.5%
Series LLC and multi-state titling edge cases
Series LLCs work in Texas, Delaware, and a handful of other states — but not every DSCR investor accepts them. Confirm the specific series is named on the deed and mortgage before you order title. If you own properties in multiple states, a holding LLC in your home state plus single-purpose LLCs per asset is the structure most lenders see daily.
Foreign LLC registration matters when the entity was formed elsewhere but buys in a new state. Some title companies require a certificate of authority in the purchase state; missing it adds a week to closing. Investment property loans for LLC · charging order protection · land trust vs LLC · DSCR eligibility
Refi from personal name into LLC — usually a bad move
If you closed a rental in your personal name and now want asset protection, a quitclaim into an LLC triggers transfer tax in Illinois, Florida, and many other states — and can activate due-on-sale clauses. Better path: hold future purchases in the LLC from day one, or ask about rate-and-term refi directly into entity vesting on the next transaction. Jaken Finance Group DSCR closes in ~14 business days at 5.75%–10.5% on qualified entity files.
Worked example — DSCR close in single-member LLC
| Line | Detail |
|---|---|
| Property | $295,000 SFR, Greenville SC |
| Entity | ”142 Oak Street LLC” (single-member) |
| Guarantor | Member signs personal guarantee |
| Rent | $1,850/mo executed lease |
| Loan | $236,000 at 80% LTV |
| Rate | 7.375% fixed |
| DSCR | 1.06 |
| Docs submitted | Articles, OA, EIN, lease, insurance, bank statements |
| Close | Day 13 — no personal income docs |
Entity is borrower on the note; member guarantees; property titled in LLC at recording.
Multi-member LLC — guaranty rules
| Ownership | Typical requirement |
|---|---|
| Single member (100%) | Full PG from sole member |
| Two members (50/50) | Both sign PG if ≥20% ownership |
| Manager-managed LLC | Managing member PG; passive members may not guarantee |
| Holding LLC owns SPV | PG from individuals with control |
PG is recourse, not income qualification — DSCR still sizes on property rent.
State-specific entity quirks
Texas community property states: non-borrowing spouse may need to sign acknowledgment at closing.
Florida documentary stamp tax on mortgage — budget $0.35 per $100 of loan amount on the note.
Illinois transfer tax if you retitle from personal to LLC after close — $1.50–$2.50 per $500 of value in Cook County.
Delaware LLC buying out of state — register foreign LLC in purchase state before closing or title will not insure.
Entity checklist — submit before DSCR application
- Articles of organization (filed copy)
- Operating agreement — all members signed
- EIN letter from IRS
- Certificate of good standing (within 30 days if required)
- Entity bank account — 2 months statements
- Authorized signer resolution if manager-managed
- Personal guarantee from qualifying members
Missing any item adds 3–5 business days per resubmit on ~14 business day DSCR targets.
Operating agreement clauses lenders actually read
Generic LLC templates from online filing services often fail DSCR underwriting. Underwriters scan for:
- Authorized signers named explicitly — “Manager” is not enough without a resolution
- Purpose clause allowing real estate acquisition and financing
- Capital contribution section showing member ownership percentages
- Transfer restrictions — some lenders require notice before membership changes
- Dissolution terms — confirm the entity survives a single-member departure
If your OA says “any member may bind the LLC,” add a lender-specific resolution at closing limiting signatory authority to the guarantor.
Entity banking — separate accounts before application
DSCR underwriters match rent deposits to the borrowing entity. Common rejections:
| Mistake | Fix |
|---|---|
| Rent deposited to personal checking | Open entity account; reroute ACH |
| Commingled flip profits with rental LLC | Separate SPV per asset |
| Zero entity transaction history | Seed account with documented capital contribution |
| Zelle rent from tenant to personal phone | Lease must show entity as landlord |
Two months of entity bank statements showing rent in and expenses out strengthen no-income DSCR files at 5.75%–10.5%.
LLC vs land trust vs IRA — DSCR vesting comparison
| Vesting | DSCR eligible? | Asset protection | Lender acceptance |
|---|---|---|---|
| Single-purpose LLC | Yes — standard | Strong | Universal |
| Land trust (beneficiary LLC) | Sometimes | Privacy + protection | Confirm before application |
| Self-directed IRA | Different product lane | Tax-advantaged | Non-recourse rules apply |
| Personal name | No on most investor DSCR | Weak | Declined |
Land trusts work in Illinois and Florida for privacy — but the beneficiary LLC must be the borrower on the note. See land trust vs LLC before you order title.
Multi-entity portfolio — how lenders view holding structures
Sponsors with six doors often use:
Holding LLC (manager/guarantor)
├── Property LLC #1 (borrower on note 1)
├── Property LLC #2 (borrower on note 2)
└── Property LLC #3 (borrower on note 3)Each DSCR file underwrites one property LLC — but the managing member of the holding company typically signs personal guarantee. Cross-collateral is rare on standard DSCR; do not assume door two helps door three’s LTV.
Foreign LLC buying in-state — registration timeline
Delaware or Wyoming LLCs are popular for formation flexibility. If the LLC buys in South Carolina, Georgia, or Illinois, register as a foreign LLC in the purchase state before closing:
| Step | Typical time | Cost |
|---|---|---|
| Certificate of authority filing | 5–10 business days | $100–$350 |
| Registered agent in purchase state | Same day | $50–$150/yr |
| Updated OA showing foreign registration | 1–2 days | Attorney |
Title will not insure if the entity lacks authority to hold property in that state — adding a week to your ~14 business day DSCR target.
Pre-qualify for DSCR in your LLC · (833) 264-7776