Loan Programs · 4 min read
85% LTV DSCR Financing Is Available — Here's Why That Matters to Investors
June 1, 2026
When real estate investors look for leverage, every 5% matters.
That is why 85% LTV DSCR financing gets attention.
A lot of DSCR lenders become more conservative as leverage increases. Many programs top out at 75% or 80% LTV, especially on non-owner-occupied investment properties where qualification is based primarily on property cash flow.
That is why it matters when 85% LTV is available.
At Lulu Capital, we offer a DSCR purchase product up to 85% LTV for loan amounts up to $2M.
Why 85% LTV matters
Higher leverage can help investors:
bring less cash to closing
preserve liquidity
keep more capital available for repairs, reserves, or future acquisitions
improve purchasing flexibility without tying up unnecessary cash
For many investors, that is not just convenient. It can directly affect how fast they can move and how many opportunities they can pursue.
Why many lenders stop lower
There are a few reasons many DSCR lenders cap leverage below 85%:
1. Higher leverage means less equity cushion
As LTV rises, lender risk rises too.
2. DSCR loans are already structured differently
These are non-owner-occupied investor loans, and many lenders apply more conservative leverage standards.
3. Qualification is based on property income
Because DSCR programs focus heavily on rental income performance, some lenders tighten their leverage limits even more.
That is what makes an 85% LTV option meaningful.
Lulu Capital's solution
If your client needs 85% LTV on a DSCR purchase, Lulu Capital has a product available up to $2M.
That can be a strong fit for:
real estate investors
rental property buyers
portfolio builders
mortgage brokers with investor clients
real estate agents working with investors
Final thought
When 75% or 80% LTV is not enough, having 85% LTV available can make a real difference.
If that is the structure you need, Lulu Capital has a solution.
We only fund business purpose loans. They must fund into an entity. Financing is subject to underwriting, property review, and borrower qualifications. Lulu Capital Inc. | CA DRE# 02236931.