Now Offering DSCR Loans for Rural Properties!
Great News For Our Investors!
We are thrilled to announce an update that will add value to our clients: We NOW provide DSCR Loans for Rural Properties! This is a game-changer for real estate investors looking to expand their portfolios in unique, off-the-beaten-path properties that were previously challenging to finance.
Why Rural Properties
Rural properties offer a range of benefits that can make them an attractive option for savvy investors:
- Lower Purchase Prices: Rural properties are often more affordable than their urban counterparts, allowing you to stretch your investment dollars further.
- High Rental Demand: Many rural areas are experiencing increased demand for rental properties, especially those offering tranquility, nature, and outdoor activities.
- Long-Term Appreciation: As urban sprawl continues, rural areas often see strong appreciation over time, providing long-term growth potential.
- Vacation Rentals: Rural properties can make ideal vacation rentals, attracting tourists seeking a peaceful retreat away from the hustle and bustle of the city.
How Our DSCR Loans Work for Rural Properties:
Our DSCR Loans are now designed to make financing rural properties simple and efficient. Below are some key guidelines:
LTV: Max LTV is 75% on rural properties.
ACREAGE: Up to 5 acres allowed, including road frontage.
SHORT TERM RENTALS: We can use the short-term rental market rates instead of traditional market rates.
PROPERTY TYPE: Single Family and condos only.
NO MINIMUM CREDIT SCORE: We review credit, but there is no minimum FICO. A lower score simply means a higher rate and lower leverage — it does not disqualify the deal.
FOREIGN NATIONALS: Foreign nationals are welcome. Max 70% LTV
UNOCCUPIED REFINANCE ALLOWED: No Tenant, No Problem.
COMPARABLES: Need at least 2 comps within 5 miles of the subject property.
COMPETITIVE RATES: Competitive fixed-rate pricing, quoted to your specific scenario.
Case Study: Refinancing a Vacant Lakefront Short-Term Rental in Buchanan Dam, TX
A rural property that most lenders won’t touch is exactly the kind of deal we’re built for. This one sat in Buchanan Dam, a small lake town about 70 miles northwest of Austin. The investor owned a lakefront home they intended to run as a short-term rental — but it was vacant, had no traditional rental history, and was stuck on a short-term, high-interest hard money loan that needed to be refinanced into something permanent.
Three things made it hard to finance conventionally: it was rural, it was vacant with no lease in place, and there were no long-term rental comps to lean on. We qualified it the way a DSCR loan should work — on the property’s income potential. Instead of a traditional long-term rent estimate, we used short-term rental market data from AirDNA, Airbnb, and VRBO to establish the projected revenue and calculate the DSCR. A vacant property with no signed lease was not a dead end; the short-term rental numbers carried the deal.
We structured it as a 30-year fixed DSCR loan with the first 10 years interest-only to maximize early cash flow, replacing the high-interest bridge debt with stable long-term financing. Total loan amount: $475,300. The investor moved from an expensive short-term loan into a predictable, fixed payment on a property they can hold and operate for years.
Funded by Kyle Farmer, Account Executive at Tidal Loans.
Ready to Explore Rural Investments?
Whether you’re looking to invest in a charming farmhouse, a peaceful cabin, or a large piece of land, our DSCR Loans for rural properties are here to help you make it happen. With our flexible and investor-friendly financing options, you can now seize opportunities in rural markets with confidence.
Ready to finance your next rural investment property? Whether it’s a lakefront short-term rental, a farmhouse, or a cabin, our DSCR loans qualify on the property’s income — not your tax returns.
Rural DSCR Loan FAQs
Can I get a DSCR loan on a rural property?
Yes. We lend on rural investment properties and qualify the loan on the property’s rental income instead of your personal tax returns. Rural deals are underwritten a little more conservatively than urban ones because appraisals and comparable sales are harder to source, which is why the loan-to-value tops out at 75% rather than the 85% we offer on standard DSCR purchases. If the property cash-flows and the file makes sense, being rural is not a barrier — it’s what we’re built for.
What is the maximum LTV on a rural DSCR loan?
Up to 75% loan-to-value on a rural property, on both purchases and rate-and-term refinances. The step down from our standard 85% purchase LTV reflects the extra appraisal and comp risk that comes with rural locations, not a weaker product. A strong credit profile and a healthy DSCR earn you the top of that range.
Can I use short-term rental income to qualify a rural property?
Yes, and for many rural, lakefront, and vacation-market properties it’s the stronger path. We can use short-term rental market data — from sources like AirDNA, Airbnb, and VRBO — to establish projected revenue and calculate the DSCR, rather than relying on a long-term lease. That’s exactly how we funded a vacant lakefront short-term rental in Buchanan Dam, Texas: no signed lease, no long-term comps, but the short-term rental numbers carried the deal.
Do you lend on vacant rural properties with no rental history?
Yes. A vacant property with no signed lease is not a dead end. We use a market rent estimate — long-term or short-term depending on how the property will be operated — so you can finance or refinance a property before a tenant is ever placed. This is common on rural short-term rentals and BRRRR projects that haven’t stabilized yet.
Is there a minimum credit score for a rural DSCR loan?
No. There is no minimum credit score. We do review your credit, but a lower score doesn’t disqualify you — it results in a higher rate, lower leverage, or more reserves. Be cautious of any lender advertising a true “no credit check” investor mortgage; that isn’t a real product. The difference with us is that your score prices the deal, it doesn’t decide whether you get one.
Is there a minimum DSCR ratio to qualify?
No. There is no minimum DSCR. Most lenders cut you off at 1.25 or 1.0, but we fund properties below 1.0 and even below 0.75 when the rest of the file supports it. A lower ratio means a lower loan-to-value, a higher rate, or more reserves to balance the risk — it doesn’t close the door. That flexibility matters most in rural and appreciation-driven markets where cash flow can be thinner on paper.
Can I refinance out of a high-interest hard money loan on a rural property?
Yes, and it’s one of the most common reasons investors call us. If you bought or rehabbed a rural property with short-term bridge or hard money debt, a DSCR refinance moves you into long-term, fixed financing — often with an interest-only period to maximize cash flow while you stabilize the property. It’s the permanent-financing exit at the end of a BRRRR.
Can I use a rural DSCR loan for a property I plan to live in?
No. Our DSCR loans are strictly for business-purpose, investment, and rental properties. We do not lend on owner-occupied or primary residences in any program, so a rural DSCR loan can’t be used for a home you’ll live in — including a rural property you intend to occupy part-time.