Who offers DSCR loans in New Hampshire?
Tom MacDonald, a loan officer with Elite Mortgage Group (a mortgage broker in Milford, NH), arranges DSCR loans for New Hampshire rental investors through the lenders Elite works with. As a broker, Elite compares options from 45 lenders, so Tom can match the loan to the property and your plans. Each lender sets its own terms.
What is a DSCR loan?
A DSCR loan is an investment property mortgage that qualifies mainly on the property's rental income instead of your personal income. DSCR stands for debt service coverage ratio: the property's monthly rent divided by its monthly payment, including principal, interest, property taxes, insurance and any association dues.
A ratio above 1 means the rent covers the full payment. Each lender sets its own minimum ratio and terms. The investor page walks through a labeled example.
How does rent replace personal income?
A DSCR lender looks at the property's rent instead of your pay stubs and tax returns. For a rented property that usually means the current lease; for a vacant property or a purchase, the appraiser can estimate market rent. The lender compares that rent with the full monthly payment.
Your credit, your cash reserves and the property still matter. Qualifying on the rent can help self-employed investors and anyone whose tax returns show large write-offs.
Why is a DSCR loan a business-purpose loan?
Federal Truth in Lending rules (Regulation Z) don't cover credit made primarily for a business purpose. The official commentary treats credit to buy, improve or maintain a rental property the owner won't occupy as business-purpose credit, no matter how many units it has. That rule doesn't apply if the owner expects to live in the property for more than 14 days in the coming year.
So DSCR loans are for investment properties, not a home you'll live in, and some consumer disclosure rules that apply to a home purchase may not apply. Ask for every term in writing, including any prepayment terms, and compare offers.
Can I buy a rental in an LLC?
Some lenders allow a DSCR loan to close in an LLC or other business entity. Regulation Z also excludes credit extended to someone other than a natural person, such as a company. If you plan to buy in an entity, expect the lender to review its documents, and ask whether you'll also sign a personal guarantee. Talk with your attorney and tax advisor about how to hold the property.
How do NH property taxes affect a DSCR loan?
New Hampshire property taxes are part of the payment the rent has to cover, and tax rates differ a lot from town to town. The same rent can produce a different ratio in two towns with different rates. Each town page lists its current rate, and buying power by town compares towns side by side.
What do DSCR lenders usually review?
DSCR lenders usually review the rent, the full payment, your reserves and your credit:
- Current leases, or the appraiser's estimate of market rent
- Property taxes, insurance and any association dues
- Cash reserves after closing
- Your credit, and entity documents if you buy in an LLC
When does a DSCR loan make sense?
A DSCR loan can fit when your personal income is hard to document, when you own several financed properties, or when you want each property to qualify on its own numbers. Living in one unit of a 2 to 4 unit building? An owner-occupied loan may fit better; see buying a 2 to 4 unit home. Self-employed and buying a home to live in? See bank statement loans.
Tom compares DSCR loans with conventional investment property loans, so you see the payment, Cash to close The total you bring to closing: your down payment plus closing costs, minus any deposits, credits or gifts. See the full glossary and reserves for each. Investment property loans: conventional vs DSCR explains the conventional side, and financing a short-term rental covers Airbnb and VRBO properties.
Tools for this topic: Investor loan options
Sources
Checked October 2026. Limits and program rules change, so confirm current figures before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.