PASSYCAPITAL
← All Q&A

For Borrowers · 4 min read

How does a DSCR loan work on an Atlanta rental property held in an LLC?

By David Hodara ·

Short Answer

The loan is made to the LLC and sized on the property's rent, not your personal income. Passy Capital arranges DSCR loans up to 80% LTV on a purchase and 75% on a cash-out, with a 30-year fixed rate available from 6% to 6.5% and coverage as low as 1.0x, from $1M to $5M. In Georgia, a licensed attorney conducts the closing.

A DSCR loan qualifies a rental on its own numbers. DSCR, the debt service coverage ratio, is the property's rental income divided by the loan payment. At 1.0x the rent covers the payment exactly; above it, the property earns more than it costs to carry. No W-2s, tax returns or personal income documents are required, which suits investors who hold several properties through LLCs.

The terms

DSCR loan terms, published
TermPassy Capital
LeverageUp to 80% LTV on a purchase, up to 75% on a cash-out refinance
Rate30-year fixed available, from 6% to 6.5%
Minimum coverageAs low as 1.0x
BorrowerThe LLC that owns the property
Loan size$1M to $5M: a larger single property, a small multifamily up to 9 units, or several rentals
Fee1% to 2% at closing, no upfront fees

What the payment looks like

At 1.0x, the rent has to cover that payment plus property taxes, insurance and any association dues. Underwrite on the taxes the property will carry after your purchase, not the seller's bill. How lenders read the ratio is in the minimum DSCR for a rental property.

Worked backwards: on a $1.5M loan at 6.5%, the property needs at least $9,481 a month of rent plus the monthly taxes, insurance and dues to reach 1.0x. Coverage above 1.0x gives room for a vacancy or a repair and usually improves the terms.

Monthly principal and interest on a 30-year fixed loan (arithmetic on the published rates)
LoanAt 6%At 6.5%
$1,000,000$5,996$6,321
$1,500,000$8,993$9,481
$2,000,000$11,991$12,641

Structures for more than one rental

Each rental can sit in its own LLC or several in one; the structure is a question for your attorney and tax adviser, and the loan follows it.

  • Fixed terms of 5, 7, 10 or 30 years
  • Fully amortizing or interest-only options
  • Portfolio programs that finance 5, 10 or 20 or more rentals under a single blanket loan
  • Cash-out on stabilized properties to recycle capital into the next purchase

Three ways Atlanta investors get to a DSCR loan

The second and third routes are common in metro Atlanta, where investors renovate in-town properties and build in the suburban counties. RealPage counted 3,348 build-to-rent units under construction in Atlanta in August 2026, and Georgia permitted 44,351 single-family units in 2025 (sources on our 2026 financing data page). The sequence is explained in refinancing a bridge loan into a DSCR loan.

  • Buy a rented property and finance it directly with a DSCR loan
  • Buy and renovate with a bridge or renovation loan, lease it, then refinance into DSCR
  • Build a spec or build-to-rent home in the suburban counties, lease it, then refinance the construction loan into DSCR

The Georgia closing

In Georgia the closing is conducted by a licensed Georgia attorney, as required by the state Supreme Court. Agree early with the closing attorney how documents will be signed, particularly if an LLC member is travelling or lives abroad. A term sheet comes back in 24 to 48 hours.

The program is on DSCR loans and Georgia single-family investment property; Atlanta specifics are on investment property loans in Atlanta. A non-US investor borrows on the same terms through a US LLC, with no US credit history required.

Got a deal where this matters?

Bridge, fix & flip and construction loans for US and foreign investors, $1M–$5M.