When it comes to real estate investments or expansions in Kentucky, a DSCR loan could be the perfect solution for real estate investors.

Debt Service Coverage Ratio loans in Kentucky are a great option to help you purchase an amazing rental property for short-term or long-term tenants - especially given that you can secure a competitive interest rate through Visio Lending.

If you're ready to start investing with a DSCR loan, Kentucky is a stellar option, and Visio Lending can provide you with the DSCR mortgage you need to make your business thrive.



Why Buy Investment Property in Kentucky?

If you're looking to purchase investment property in a quieter state as you build up your portfolio, Kentucky's got you covered. This less competitive market enjoys lower property values than you'd find elsewhere, which is great for those who would like a lower loan amount as they work to build equity for more high-stakes investments elsewhere.

The average home value in Kentucky is $247,800, which is incredibly reasonable for investment properties; in addition, rental income is about $1,295 per month, which means you'll be more than able to cover your monthly payments.

Another great reason to invest in Kentucky is this - other entities are pouring money in too! UPS is in the process of opening new facilities in two Kentucky counties to the tune of $334 million, which assures you that your purchase will only grow in value as the economy improves.


Hottest Markets in Kentucky for a DSCR Loan

Curious as to where you should purchase a rental property in Kentucky? These are the five hottest markets in the region, where a DSCR mortgage will help you achieve your financial goals.

📍 Louisville 

Low unemployment and rising property values make a purchase in this historical city a winning deal.

📍 Bowling Green

This city is perfect for a DSCR mortgage because it's very much a buy-and-hold market. A fast-growing population and rising rents ensure your investment properties will secure you excellent rents for the long term; average rents have risen about 8% year-over-year.

📍 Owensboro

Prairie Village is a suburb of Kansas City; this cozy city is an upmarket option for those seeking high-end real estate investments. Last year, this little-known gem was Zillow's best market, proving there's great value in pursuing investment properties in the Midwest and Great Plains.



DSCR Loan Requirements: Kentucky

Unlike a traditional mortgage loan, borrowers qualify for a DSCR loan based on the property's income rather than their personal income, making them a great choice for investors with mortgage experience. For DSCR mortgages, you don't need to show tax returns, pay stubs, or your debt-to-income ratio; instead, the debt service coverage ratio of the investment properties is front and center.

To calculate DSCR, lenders divide the property's cash flow by the mortgage payment: a positive DSCR means that the property makes enough profit to cover its debts, while a negative ratio means it's losing money. Your ratio is identified by a rent schedule of the investment property, which proves its cash flow.

In addition to proving that the rental property is making at least 1.25 times what it costs, you'll also need to have a minimum credit score of 640, a loan-to-value ratio of 80 or less, and provide a down payment of at least 20% in addition to closing costs. It's a flexible financing - or refinancing - option, especially as the process is far more streamlined than for other mortgage loan types.


Closed DSCR Loans Kentucky

Check out some of Visio Lending's recently closed DSCR loans in Kentucky.




  Louisville, KY

  • $553,000 Loan Amount
  • Cash-Out Refinance
  • LTR 
  • DSCR: 1.02
Lexington STR


  Lexington, KY

  • $916,000 Loan Amount
  • Purchase
  • STR
  • DSCR: 1.18
Bardstown KY LTR


  Bardstown, KY

  • $175,000 Loan Amount
  • Purchase
  • LTR
  • DSCR: 1.03
map of kentucky

Our DSCR Loans in Kentucky have:

  • · Full 30 year terms, no balloons for rental residential properties

  • · The ability to finance in an LLC

  • · No tax documents or personal income verification

  • · Real estate investor-friendly loan programs

  • · Interest only loan options


Contact Us to Start Your Loan