DSCR Financing for 5+ Unit Apartment Buildings and Commercial Real Estate

DSCR Loans for Commercial PropertiesDSCR Financing for 5+ Unit Apartment Buildings and Commercial Real Estate

Commercial DSCR loans for larger apartment buildings and commercial investment properties.

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In This Guide

Key Takeaways

Commercial DSCR loans finance 5+ unit apartments, retail, office, and mixed-use properties using NOI-based qualification, with no personal income verification required.

The DSCR formula for commercial properties uses Net Operating Income (NOI) divided by annual debt service, requiring detailed T-12 financial statements and current rent rolls.

Minimum DSCR requirements are 1.20x-1.35x, higher than residential programs, reflecting the greater complexity and risk profile of commercial assets.

Loan amounts range from $500K to $25M+ with 25-30 year amortization; non-recourse options are available for loans above $1M on stabilized properties.

Cap rate must exceed the loan interest rate for the deal to produce a viable DSCR at reasonable leverage; target properties with cap rates at least 1.0%-1.5% above the loan rate.

Commercial underwriting requires professional-grade documentation: T-12 financials, rent rolls, Phase I environmental, and property condition assessments.

The transition from residential to commercial DSCR is a leap in scale and complexity, but commercial properties offer economies of scale and income-based valuation that reward active management.

Key Features

5+ unit apartment buildings

Office and retail investment properties

NOI-based DSCR calculation

Loan amounts from $500K to $25M+

25-30 year amortization typical

Recourse and non-recourse options

Requires trailing 12-month financials (T-12)

Rent rolls and operating statements required

DSCR Loans for Commercial Properties: A Complete Overview

Commercial DSCR loans extend the income-based qualification approach to larger, income-producing properties that fall outside the 1-4 unit residential category. While residential DSCR loans cover single-family homes through fourplexes, commercial DSCR loans finance five-unit-and-above apartment buildings, mixed-use properties, retail centers, office buildings, and other commercial real estate. The fundamental principle remains the same: the property qualifies based on its ability to generate income sufficient to service the debt, not on the borrower's personal income or employment.

The commercial DSCR formula uses Net Operating Income (NOI) rather than gross rental income. NOI equals gross rental income minus operating expenses (property management, maintenance, insurance, taxes, vacancy reserve, and other costs of operation), but before debt service. The commercial DSCR is calculated as DSCR = NOI / Annual Debt Service. A property generating $180,000 in NOI with $150,000 in annual debt service has a DSCR of 1.20x. Most commercial DSCR lenders require a minimum of 1.20x to 1.35x, higher than the 1.00x minimum common in residential DSCR programs.

620

Min Credit Score

20-25%

Down Payment

7.0-8.5%

Typical Rates

14-21 Days

Close Time

Loan amounts on commercial DSCR products range from $500,000 to $25 million or more, reflecting the larger scale of commercial properties. A 20-unit apartment building, a retail strip center, or a small office building can represent millions of dollars in value, and the loan sizes reflect that scale. Terms range from 5-year to 30-year maturities, with 25-year or 30-year amortization being standard for apartment buildings and shorter amortization for retail and office properties.

The commercial DSCR loan market has expanded significantly as lenders recognize that many commercial property investors share the same profile as residential DSCR borrowers: self-employed entrepreneurs, full-time investors, and high-net-worth individuals whose tax returns do not reflect their true financial capacity. By underwriting the property rather than the borrower, commercial DSCR lenders can serve this market efficiently while maintaining strong collateral positions.

Eligible Commercial Property Types for DSCR Financing

Multi-family apartment buildings with five or more units are the most common commercial property type financed with DSCR loans. These range from 5-unit buildings at the smaller end to 100-unit or larger apartment complexes. The transition from residential to commercial occurs at the five-unit threshold: a fourplex is classified as residential and underwritten as such, while a five-unit building is commercial and subject to commercial underwriting standards. Apartment buildings are favored by DSCR lenders because they generate diversified rental income streams and have historically low vacancy rates in most markets.

Mixed-use properties, which combine residential units with ground-floor retail or office space, are eligible for commercial DSCR loans when the building has five or more total units or when the commercial component represents a significant portion of the total income. A building with eight apartments above a retail storefront is a classic mixed-use candidate. Lenders evaluate the income from all sources, residential rents and commercial rents, in calculating the NOI and DSCR. Mixed-use properties can offer strong diversification benefits because residential and commercial tenants provide different income streams that may not fluctuate in tandem.

“Multi-family apartment buildings with five or more units are the most common commercial property type financed with DSCR loans”

Retail properties, including strip malls, single-tenant retail buildings, and shopping centers, can be financed with commercial DSCR loans, though they face more rigorous underwriting than multi-family properties. Lenders scrutinize tenant quality, lease terms, remaining lease duration, and the tenant's creditworthiness. A retail property with a national tenant on a 10-year triple-net lease is a strong DSCR candidate, while a multi-tenant retail center with short-term leases and local tenants faces more challenging underwriting.

Office buildings, industrial properties, self-storage facilities, and other commercial property types may also qualify for DSCR financing, depending on the lender's program. Office properties have faced headwinds due to remote work trends, and some lenders have tightened office lending criteria. Industrial and self-storage properties, by contrast, have seen increased demand and lender interest. The key in all cases is demonstrable, stable income that supports the debt service obligation with adequate coverage.

NOI-Based DSCR Calculation for Commercial Properties

The commercial DSCR calculation begins with Net Operating Income (NOI), which differs significantly from the gross rental income used in residential DSCR calculations. NOI is gross potential rent, minus vacancy and credit loss, minus operating expenses. Operating expenses include property management fees (typically 5% to 8% for multi-family), maintenance and repairs, property taxes, insurance, utilities paid by the owner, common area maintenance, and any other costs of operating the property. The result is the income available to pay debt service.

Consider a 12-unit apartment building generating gross potential rent of $216,000 per year ($1,500 per unit per month). Assuming 5% vacancy and credit loss ($10,800), the effective gross income is $205,200. Operating expenses total $82,000 per year, including $12,300 for management, $18,000 for taxes, $8,000 for insurance, $15,000 for maintenance, $12,000 for utilities, and $16,700 for other expenses. The NOI is $205,200 minus $82,000, which equals $123,200. If the annual debt service on the proposed loan is $96,000 ($8,000 per month), the DSCR is $123,200 / $96,000 = 1.28x.

Lenders apply their own expense assumptions when underwriting commercial properties, and these may differ from the borrower's actual expenses. Most lenders use a minimum management fee of 5% to 8% of effective gross income, regardless of whether the borrower self-manages. They may also apply a standard vacancy factor (5% to 10%) even if the property is currently fully occupied. This conservative approach ensures the DSCR reflects sustainable income rather than best-case current performance.

Understanding the NOI-based DSCR calculation is essential for structuring your acquisition offer and financing. Before making an offer, run the NOI calculation using both the seller's actual numbers and the lender's likely underwriting assumptions. If the lender-calculated DSCR falls below the minimum threshold (typically 1.20x to 1.35x), you either need to offer a lower purchase price (to reduce the loan amount and debt service) or demonstrate that the rents can be increased to improve the NOI.

T-12 Financial Statements and Rent Rolls

The Trailing Twelve Months (T-12) financial statement is the cornerstone document for commercial DSCR underwriting. The T-12 shows the property's actual income and expenses for the most recent twelve-month period, month by month. Lenders use the T-12 to verify income stability, identify seasonal patterns, assess expense reasonableness, and calculate the trailing NOI. A clean, well-organized T-12 with supporting documentation accelerates underwriting and builds lender confidence in the property's financial performance.

The rent roll is a companion document that lists every unit in the property, the tenant's name, the lease start and end dates, the monthly rent amount, and the security deposit. The rent roll provides a snapshot of the property's current occupancy and income at a point in time, while the T-12 shows how that income has trended over the past year. Lenders cross-reference the rent roll against the T-12 to verify consistency and identify any discrepancies. A property with a current rent roll showing $18,000 per month but a T-12 averaging $15,000 per month raises questions that must be explained.

Pro Tip

Preparing accurate and detailed T-12 financials requires disciplined record-keeping. Commercial property owners should track all income (rents, late fees, pet deposits, laundry income, parking income) and all expenses (management, maintenance, utilities, taxes, insurance, legal, accounting, supplies) on a monthly basis using property management software or a detailed spreadsheet.

When the T-12 shows improving trends, such as rising occupancy, increasing rents, or decreasing expenses, lenders may use an annualized recent period or a forward-looking projection rather than the full trailing twelve months. Conversely, if the T-12 shows declining performance, lenders will use the lower numbers. Preparing your T-12 strategically by implementing rent increases, filling vacancies, and reducing unnecessary expenses three to six months before applying can meaningfully improve your DSCR and qualifying loan amount.

Commercial DSCR Loan Amounts, Terms, and Amortization

Commercial DSCR loans start at $500,000 for the smallest eligible properties and can exceed $25 million for larger apartment complexes, retail centers, and office buildings. The loan amount is determined by the lower of two calculations: the maximum LTV (typically 65% to 75% of the appraised value) and the loan amount that produces the lender's minimum DSCR (typically 1.20x to 1.35x). In many cases, the DSCR constraint is the binding limit, meaning the property can support less debt than the LTV alone would allow.

Amortization periods on commercial DSCR loans are typically 25 to 30 years for multi-family properties and 20 to 25 years for retail, office, and other commercial property types. Longer amortization results in lower monthly payments and higher DSCR, which is why apartment investors generally receive more favorable treatment than retail or office investors. Some lenders offer interest-only periods of 2 to 5 years, which further improves the DSCR during the initial years and can be strategically valuable during a lease-up or value-add renovation period.

“Commercial DSCR loans start at $500,000 for the smallest eligible properties and can exceed $25 million for larger apartment complexes, retail centers, and office buildings”

Loan maturities vary more widely in commercial lending than in residential. While residential DSCR loans are typically 30-year fully amortizing, commercial DSCR loans may have shorter maturities with balloon payments. A common structure is a 30-year amortization with a 10-year maturity, meaning the payment is calculated as if the loan will be paid off over 30 years, but the remaining balance is due in full after 10 years. This structure keeps payments manageable but creates a refinance obligation at maturity. Fully amortizing 30-year terms are available from some lenders, particularly for stabilized multi-family properties.

Interest rates on commercial DSCR loans currently range from 7.0% to 9.0%, depending on property type, size, LTV, DSCR, and borrower profile. Multi-family properties command the lowest rates within the commercial segment, while retail and office properties carry premiums of 0.25% to 1.00%. Fixed-rate options are available for 5, 7, 10, and sometimes the full 30-year term. Adjustable-rate products start lower but carry the risk of payment increases at the adjustment date.

Recourse vs. Non-Recourse Commercial DSCR Loans

One of the most significant decisions in commercial DSCR financing is whether the loan is recourse or non-recourse. A recourse loan allows the lender to pursue the borrower personally if the property value and sale proceeds are insufficient to cover the loan balance in a default scenario. A non-recourse loan limits the lender's recovery to the property itself: if the property is foreclosed and sold for less than the loan balance, the lender absorbs the loss and cannot come after the borrower's personal assets.

Non-recourse commercial DSCR loans are available for larger loan amounts, typically $1 million and above, and for strong properties in good markets. Lenders offer non-recourse terms when they are confident in the property's value and income stability, which reduces their perceived risk. Non-recourse loans come with 'carve-out' provisions, sometimes called 'bad boy' guarantees, that restore personal recourse if the borrower engages in fraud, environmental contamination, voluntary bankruptcy filing, or other specific prohibited actions. These carve-outs are standard and protect the lender against borrower misconduct.

Recourse loans are more common for smaller commercial DSCR loans, typically below $1 million, and for properties with higher risk profiles. Recourse loans offer lower interest rates and higher leverage because the lender has additional security beyond the property. For an investor with significant personal assets, the rate savings on a recourse loan may be attractive, but the personal liability exposure is a meaningful tradeoff. Many investors structure their holdings in LLCs specifically to limit personal exposure, but a personal guarantee on a recourse loan pierces that protection.

The choice between recourse and non-recourse should be evaluated in the context of your overall portfolio and personal financial situation. If you are a full-time investor with most of your wealth tied up in real estate, non-recourse lending protects your personal assets from a single-property disaster. If you are a high-income professional with diversified assets and a strong balance sheet, the rate savings on a recourse loan may be worth the additional risk. Discuss the implications with your attorney and financial advisor before making this decision.

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Cap Rate Considerations and Commercial Property Valuation

The capitalization rate (cap rate) is the most important valuation metric in commercial real estate, and it directly impacts your DSCR loan qualification. The cap rate is calculated as NOI divided by the property's purchase price or market value. A property with $120,000 in NOI selling for $1,500,000 has a cap rate of 8.0%. The cap rate represents the unleveraged return an investor would earn if they purchased the property with all cash, and it serves as the market's pricing benchmark for commercial real estate.

Cap rates and DSCR are inherently linked. A higher cap rate means the property generates more income relative to its value, which generally produces a higher DSCR for a given LTV and interest rate. Conversely, a property purchased at a low cap rate generates less income relative to the debt service, potentially resulting in a DSCR below the lender's minimum. In practical terms, if the cap rate on a property is below the interest rate on the loan, the property will not have a positive DSCR at high leverage levels. This mathematical relationship sets a floor on the cap rate at which a commercial DSCR loan is feasible.

Pro Tip

For example, if the loan interest rate is 7.5% and the cap rate is 6.0%, the property generates $6.00 in NOI for every $100 of value but owes $7.50 in interest for every $100 borrowed. At 75% LTV, the debt service per $100 of value is approximately $5.63 (on a 30-year amortization), and the DSCR would be $6.00 / $5.63 = 1.07x, barely above the typical minimum.

Commercial property appraisals use three approaches to value: the income approach (capitalizing the NOI at a market-derived cap rate), the sales comparison approach (comparing to recent sales of similar properties), and the cost approach (calculating the replacement cost minus depreciation). For income-producing properties, the income approach is typically the most influential. This means that improving the NOI through rent increases, expense reduction, or occupancy improvement directly increases the appraised value, making commercial properties uniquely responsive to active management.

How Commercial DSCR Underwriting Differs from Residential

Commercial DSCR underwriting is significantly more detailed and rigorous than residential DSCR underwriting. While a residential DSCR loan might require only an appraisal, a lease, and a credit report, a commercial DSCR loan requires a T-12 income and expense statement, a current rent roll, a property condition assessment, an environmental phase I report (for most properties), operating statements for the past two to three years, a detailed operating budget, and often a market study or supply-demand analysis for the submarket.

The DSCR itself is calculated differently. Residential DSCR uses gross rent divided by PITIA, a simple ratio that assumes minimal expenses beyond the mortgage payment. Commercial DSCR uses NOI divided by debt service, which incorporates a full accounting of operating expenses. This means that expense management is as important as revenue generation in commercial DSCR qualification. A property with high rents but excessive expenses can have a lower DSCR than a property with moderate rents and lean operations.

“Vacancy and credit loss assumptions are another key difference”

Vacancy and credit loss assumptions are another key difference. Residential DSCR loans typically use the actual lease rent with no vacancy deduction, or at most a standard 5% vacancy factor. Commercial DSCR loans apply vacancy and credit loss factors based on the property's historical performance, the market's current vacancy rate, and the lender's internal guidelines, which may range from 5% to 15%. Properties with shorter lease terms, higher tenant turnover, or weaker tenant credit profiles face higher vacancy assumptions.

The borrower's experience also receives more scrutiny in commercial lending. While a residential DSCR loan may require only a credit score, commercial lenders often want to see a borrower's track record of managing similar properties. A first-time apartment buyer with no multi-family experience may face higher down payment requirements, higher rates, or a requirement to use professional property management. Borrowers with a demonstrable portfolio of successfully managed commercial properties receive preferential terms.

Qualifying for a Commercial DSCR Loan

The minimum DSCR for most commercial DSCR loans is 1.20x to 1.35x, higher than the 1.00x minimum common in residential programs. This higher threshold reflects the greater complexity and risk associated with commercial properties, including more variable income streams, higher operating expenses, and potentially longer vacancy periods between tenants. Lenders want a meaningful cushion between the property's income and its debt service obligation, and the 1.20x to 1.35x range provides that cushion.

LTV limits on commercial DSCR loans are typically 65% to 75%, meaning a minimum down payment of 25% to 35%. Multi-family properties generally receive the highest LTV allowances (up to 75%), while retail, office, and mixed-use properties are often limited to 65% to 70%. As with residential DSCR loans, the actual LTV may be constrained by the DSCR: even if the lender allows 75% LTV, the property may only support 70% LTV at the minimum DSCR. Running both the LTV and DSCR calculations before submitting is essential.

Credit score requirements for commercial DSCR loans range from 660 to 700 for most lenders, with the best terms available at 720 and above. Some lenders place less emphasis on credit score for commercial loans than for residential, instead focusing on the property's financials and the borrower's experience. However, a score below 660 will significantly limit your options and increase your cost of capital. Commercial DSCR borrowers should also expect a more thorough review of their overall financial picture, including a personal financial statement and a schedule of real estate owned.

Reserve requirements for commercial DSCR loans are typically 6 to 12 months of debt service, significantly higher than the 3 to 6 months required for residential programs. Some lenders also require escrow accounts for taxes, insurance, and replacement reserves (capital expenditure reserves). The replacement reserve is unique to commercial lending and requires the borrower to set aside a monthly amount, typically $200 to $500 per unit for multi-family, to fund future capital improvements such as roof replacement, HVAC systems, and parking lot repaving.

Finally, most commercial DSCR lenders require the borrowing entity to be an LLC, LP, or corporation with an operating agreement or partnership agreement that clearly defines management authority, ownership percentages, and distribution provisions. Properties with complex ownership structures, such as multi-tier entity arrangements or joint ventures, require additional documentation and may face longer underwriting timelines.

Transitioning from Residential to Commercial DSCR Loans

Many investors start with residential DSCR loans for single-family rentals and small multi-family properties, then transition to commercial DSCR loans as they scale their portfolio. The jump from a fourplex to a five-unit or larger building is not just a change in property size; it is a change in the entire financing framework. Understanding the differences in underwriting, documentation, and deal structure before making this transition is essential for a smooth experience and optimal terms.

The first major difference is the shift from gross rent to NOI-based underwriting. Residential investors who are accustomed to qualifying based on rental income versus PITIA must now think in terms of net operating income, which requires detailed tracking of all operating expenses. If you have been managing your residential properties informally, with expenses paid from a personal account and income tracked in a spreadsheet, you will need to professionalize your financial management before approaching commercial lenders.

620

Min Credit Score

20-25%

Down Payment

7.0-8.5%

Typical Rates

14-21 Days

Close Time

The second difference is the importance of the property's track record. Commercial lenders want to see that the property has a demonstrated history of income generation, typically two to three years of financial statements. This means that buying a distressed or vacant commercial property is more complex than buying a distressed residential property. You may need bridge or value-add financing to acquire and stabilize the property before refinancing into a permanent commercial DSCR loan.

The rewards of this transition can be substantial. Commercial properties benefit from economies of scale (lower per-unit management and maintenance costs), more professional tenant relationships, and income-based valuation that allows investors to directly increase property value through operational improvements. A 20-unit apartment building generating $360,000 in annual NOI at a 7.0% cap rate is valued at over $5.1 million. Increasing the NOI by $30,000 through rent increases and expense reduction adds over $428,000 in value, a leverage effect that simply does not exist in residential real estate.

Side-by-Side Comparison

How the options stack up across key factors.

Feature	Commercial DSCR	Residential DSCR	Agency (Fannie/Freddie)
Property Types	5+ units, retail, office, mixed-use	1-4 unit residential	5+ unit apartments
DSCR Calculation	NOI / Debt Service	Gross Rent / PITIA	NOI / Debt Service
Minimum DSCR	1.20x-1.35x	1.00x-1.25x	1.20x-1.25x
Max LTV	65%-75%	75%-80%	75%-80%
Loan Amounts	$500K-$25M+	$75K-$3M	$1M-$50M+
Income Verification	None (property NOI)	None (property rent)	Full personal income
Interest Rates	7.0%-9.0%	7.0%-8.5%	5.5%-7.5%
Closing Timeline	45-90 days	21-35 days	60-120 days
Non-Recourse Available	Yes ($1M+)	Rare	Yes (standard)

Frequently Asked Questions

Everything you need to know about DSCR Loans for Commercial Properties.

What is the minimum loan amount for a commercial DSCR loan?▾

Most commercial DSCR lenders set a minimum loan amount of $500,000, though some programs start as low as $250,000 for small multi-family properties (5-8 units) in lower-cost markets. The practical minimum is often determined by the property value and the lender's LTV limit. A 6-unit building valued at $600,000 at 70% LTV would produce a $420,000 loan, which falls below many commercial lenders' minimums. For smaller commercial properties, look for lenders that specialize in the 'small balance commercial' segment.

How is the DSCR calculated differently for commercial properties?▾

Commercial DSCR uses Net Operating Income (NOI) divided by annual debt service, while residential DSCR uses gross rental income divided by PITIA. NOI accounts for operating expenses such as property management, maintenance, vacancy, taxes, and insurance, providing a more complete picture of the property's true income-generating capacity. A commercial property with $300,000 in gross rent but $120,000 in operating expenses has an NOI of $180,000; if annual debt service is $144,000, the DSCR is 1.25x.

What is a T-12 and why is it required?▾

A T-12 (Trailing Twelve Months) is a financial statement showing the property's actual income and expenses for the most recent twelve-month period, presented month by month. Commercial DSCR lenders require a T-12 to verify income stability, assess expense reasonableness, identify seasonal patterns, and calculate the trailing NOI. The T-12 should be prepared from actual bank statements, receipts, and property management records. Professional-quality T-12 preparation is essential; incomplete or inconsistent T-12 documents are a leading cause of commercial loan delays and denials.

Are commercial DSCR loans recourse or non-recourse?▾

Both options are available. Non-recourse commercial DSCR loans are typically available for loan amounts of $1 million and above on stabilized properties in strong markets. Non-recourse limits the lender's recovery to the property, protecting the borrower's personal assets, but comes with 'carve-out' provisions for fraud or misconduct. Recourse loans are more common for smaller loans (under $1M) and offer lower rates and higher leverage in exchange for personal liability. The choice depends on your risk tolerance and portfolio structure.

What cap rate do I need for a commercial DSCR loan to work?▾

As a general rule, the cap rate on the property should exceed the loan interest rate for a commercial DSCR loan to produce a comfortable DSCR at reasonable leverage. With current interest rates of 7.0%-9.0%, properties purchased at cap rates below 7.0% will produce tight DSCRs at 70%+ LTV. For comfortable qualification, target properties with cap rates at least 1.0% to 1.5% above the loan interest rate. For example, at a 7.5% loan rate, look for properties at 8.5% to 9.0% cap rates to ensure a DSCR of 1.25x or higher.

Can I get a commercial DSCR loan for a mixed-use property?▾

Yes, mixed-use properties are eligible for commercial DSCR loans. Lenders evaluate the combined income from all uses (residential, retail, office) when calculating the NOI and DSCR. Properties where residential income represents 70% or more of total income are generally underwritten more favorably than predominantly commercial properties. The residential component provides income stability, while the commercial component can offer higher per-square-foot returns. Ensure all commercial leases are documented and that tenant quality is adequate to satisfy the lender's requirements.

What reserve requirements exist for commercial DSCR loans?▾

Commercial DSCR loans typically require 6-12 months of debt service in liquid reserves, plus ongoing replacement reserves of $200-$500 per unit per month for multi-family properties. Replacement reserves are escrowed by the lender and used for capital expenditures such as roof replacement, major mechanical systems, and parking lot repairs. Some lenders also require tax and insurance escrows, collecting monthly amounts that are used to pay annual tax and insurance bills. Total reserve requirements on a 20-unit building can easily reach $100,000 or more.

How long does a commercial DSCR loan take to close?▾

Commercial DSCR loans typically take 45 to 90 days to close, significantly longer than the 21-35 days common for residential DSCR loans. The extended timeline reflects the more complex underwriting process, including T-12 analysis, rent roll verification, environmental review (Phase I), property condition assessment, commercial appraisal, and legal document preparation. To expedite the process, have your T-12, rent roll, and property documentation organized before applying, and respond to lender information requests within 24-48 hours.

Do I need commercial property management experience to qualify?▾

While not always a strict requirement, commercial property management experience significantly impacts your terms and approval likelihood. Lenders view experienced operators as lower risk and may offer better rates, higher leverage, and more flexible terms. First-time commercial buyers can qualify by partnering with an experienced property manager, bringing on a joint venture partner with commercial experience, or demonstrating a strong residential portfolio as evidence of real estate management capability. Some lenders require professional third-party management for first-time commercial borrowers.

What is the difference between commercial DSCR loans and agency loans (Fannie Mae/Freddie Mac)?▾

Agency loans (Fannie Mae and Freddie Mac multi-family programs) offer lower interest rates and higher leverage (up to 80% LTV) than commercial DSCR loans, but they require full personal income verification, tax returns, and detailed borrower financial analysis. Commercial DSCR loans qualify based on the property's income alone, with no personal income documentation required. Agency loans also have minimum loan amounts ($1M+ for most programs), longer processing times (60-120 days), and more restrictive prepayment terms. Commercial DSCR loans are faster, simpler, and more accessible but come at a higher cost of capital.