Indiana DSCR & Mortgage Loans

Why investors choose DSCR loans in Indiana

A DSCR loan lets you scale a rental portfolio in Indiana without the income hurdles of conventional financing. Approval is based on whether the property pays for itself.

Qualify on the property’s rental cash flow — no personal income, W-2s, or tax returns
Up to 80% LTV on purchase at the top tier (740 FICO); higher scores unlock higher LTV
Credit scores from 640 — cash-out available at 660+
Loan amounts from $100,000 to $3,500,000
Short-term rentals (Airbnb, VRBO, FlipKey) eligible up to 80% LTV on purchase
First-time investors eligible (restrictions apply)

Indiana on the ground

Total Quality Lending is headquartered at 630 W Carmel Dr #100, Carmel, IN 46032 — about 20 miles north of downtown Indianapolis, in Hamilton County. Our investor-loan team works Indiana files from the same office that serves all 46+ of our licensed states, with phone, email, and video coverage for borrowers anywhere in the world.

Why investors target the Indianapolis metro

Indianapolis is the largest city in Indiana and the seat of Marion County, with a diversified renter base across logistics, healthcare, higher education, and the public sector. As a Midwest secondary market it typically delivers stronger rent-to-price math than coastal metros — which is why DSCR cash-flow underwriting (where the property must cover its own PITIA) tends to pencil cleanly here.

Indianapolis-area counties and cities we lend in

TQL writes investor loans across the full Indianapolis MSA — Marion County (Indianapolis), Hamilton County (Carmel, Fishers, Noblesville, Westfield), Hendricks County (Avon, Plainfield, Brownsburg, Danville), Johnson County (Greenwood, Franklin, Bargersville), Boone County (Lebanon, Zionsville), Hancock County (Greenfield, McCordsville, Fortville), Morgan County (Mooresville, Martinsville), Madison County (Anderson), and Shelby County (Shelbyville).

Statewide Indiana coverage outside the metro

Beyond Indianapolis, we finance investment property statewide — Fort Wayne (Allen County), Evansville (Vanderburgh), South Bend & Mishawaka (St. Joseph), Bloomington (Monroe, home of Indiana University), Lafayette & West Lafayette (Tippecanoe, home of Purdue), Muncie (Delaware, home of Ball State), Terre Haute (Vigo), Columbus (Bartholomew), Kokomo (Howard), and the Northwest Indiana / Chicago-metro corridor of Gary, Hammond, East Chicago, and Merrillville (Lake County).

Close fast from our Carmel office

Indiana files don't sit in a queue — they're worked from the same Carmel office that runs the program nationally. We aim to close investor loans in as little as 15 days when title, appraisal, and asset documentation are clean. Call (800) 304-1925 to speak with the team.

Indiana DSCR program at a glance

Maximum LTV: 80% (purchase)
Minimum credit score: 640
Loan amounts: $100K – $3.5M
Occupancy: Investment only
Loan purposes: Purchase, Rate/term refinance, Cash-out refinance

Available terms

15-, 30-, and 40-year fixed
5/6, 7/6 & 10/6 ARMs (30-year term)
Interest-only options (680+ credit score)

Eligible property types

Single-family (attached & detached)
2–4 unit properties
Condominiums & condo-hotels
Rural properties (up to 5 acres)

Indiana DSCR max LTV by credit score

Your maximum loan-to-value is set by your credit score, loan size, and the property’s debt-service coverage ratio (DSCR). These are the purchase tiers for a DSCR of 1.00 or higher.

Credit score	Max purchase LTV	Notes
740+	80%	to $2.5M · cash-out to 80%
720	80%	to $1.5M · cash-out to 80%
700	80%	to $1.5M · 70% to $3.5M
660	75%	cash-out to 70%
640	75%	to $1M · no cash-out

Rate/term and cash-out LTVs are lower than purchase. Loans under $150,000 cap at 70% purchase / 65% refinance and require a DSCR of at least 1.25. Short-term rentals are eligible up to 80% LTV on purchase. Final terms are subject to full underwriting.

Short-term rental (Airbnb & VRBO) loans in Indiana

Running a short-term rental in Indiana? DSCR financing works for Airbnb, VRBO, and FlipKey properties too. Qualifying income is based on a 12-month rental average, and short-term rentals are eligible up to 80% LTV on purchase — so your nightly cash flow can power your next acquisition.

Indiana DSCR loan FAQs

Can I get a DSCR loan in Indiana?

Yes. Total Quality Lending provides DSCR loans throughout Indiana for real estate investors. DSCR (Debt-Service Coverage Ratio) loans qualify on the property's rental cash flow rather than your personal income — no W-2s or tax returns required.

What credit score do I need for a DSCR loan in Indiana?

DSCR loans in Indiana are available with credit scores starting at 640. Higher scores unlock higher LTVs and larger loan amounts, and cash-out refinances require a minimum 660 score.

What is the maximum LTV for a DSCR loan in Indiana?

In Indiana, DSCR loans go up to 80% LTV. The 80% tier is reserved for strong files (700+ FICO on loans up to $1.5M, or 740 FICO up to $2.5M) with a DSCR of 1.00 or higher; lower scores, larger loans, or a DSCR below 1.00 reduce the maximum LTV. Cash-out refinances require a 660+ score.

Can I use short-term rental (Airbnb) income to qualify in Indiana?

Yes. Short-term rentals (Airbnb, VRBO, FlipKey) are eligible in Indiana. Qualifying income is based on a 12-month rental average, and short-term rentals are eligible up to 80% LTV on purchase.

How much can I borrow with a DSCR loan in Indiana?

DSCR loan amounts in Indiana range from $100K to $3.5M, available for single-family, 2–4 unit, condominium, and eligible rural investment properties.

Where is Total Quality Lending headquartered?

Total Quality Lending is headquartered at 630 W Carmel Dr #100, Carmel, IN 46032, in Hamilton County and the Indianapolis metropolitan area. The Carmel office originates and services loans across all licensed states; California-based licensing (DFPI No 60DBO-108369, NMLS #1933377) covers our regulatory footprint nationally.

Which Indianapolis-area counties does Total Quality Lending lend in?

We finance investor properties across the full Indianapolis-Carmel-Anderson MSA: Marion County (Indianapolis), Hamilton County (Carmel, Fishers, Noblesville, Westfield), Hendricks County (Avon, Plainfield, Brownsburg, Danville), Johnson County (Greenwood, Franklin, Bargersville), Boone County (Lebanon, Zionsville), Hancock County (Greenfield, McCordsville, Fortville), Morgan County (Mooresville, Martinsville), Madison County (Anderson), and Shelby County (Shelbyville).

Which other Indiana cities does TQL finance investment property in?

Statewide. Outside the Indianapolis metro we regularly write loans in Fort Wayne, Evansville, South Bend, Mishawaka, Bloomington, Lafayette, West Lafayette, Muncie, Terre Haute, Columbus, Kokomo, and the Northwest Indiana / Chicago-metro corridor (Gary, Hammond, East Chicago, Merrillville). Indiana is one of our licensed states, so any investment property in the state is eligible subject to program guidelines.

How fast can TQL close on an Indiana investment-property loan?

On clean files — title, appraisal, and asset documentation already in motion — TQL targets closings in as little as 15 days. The team is set up to compress the same underwriting that out-of-state investors get from coastal lenders, with all servicing run out of the Carmel office.

Ready to finance your Indiana investment property?

Get a fast DSCR quote and talk to a real human who invests in real estate too.

Start my DSCR quote (800) 304-1925

DSCR loans in other states

View all states we lend in →

More ways to qualify in Indiana

Full documentation and alternative income options

Prime Time reviews personal income for primary residences, second homes and investment properties. DSCR reviews the rental property. Licensing, occupancy, property type and the selected documentation path determine which options apply to your Indiana purchase or refinance.

Standard Doc (W-2 or Tax Returns)

The traditional full-doc path: paystubs and W-2s for wage earners, or 1–2 years of personal and business tax returns for self-employed borrowers. Also accepts AUS findings (Fannie Mae DU Approve/Eligible or Freddie Mac LPA Accept/Eligible).

Wage/salary: paystubs, W-2s, and 1- or 2-years of tax returns
Self-employed: 1- or 2-years personal and business tax returns + YTD P&L
IRS Form 4506-C signed at close + verbal VOE (wage earners)
AUS findings (DU Approve/Eligible or LPA Accept/Eligible) accepted
DU Approve/Ineligible or LPA Accept/Ineligible permitted for: large loan amounts, interest-only, prepay, # financed properties, credit < 720 with ≥ 7 financed properties, or refis > 75% LTV (subject to program max)
Caution / Refer with Caution findings NOT allowed
Appraisal waiver from DU/LPA NOT eligible — full appraisal required
Minimum credit score: 620
Minimum two-year employment history

Personal Bank Statements

Qualify on the eligible deposits from 12 or 24 months of personal bank statements — ideal for self-employed borrowers whose tax returns don't reflect true cash flow.

12 or 24 months of personal bank statements
Plus 2 months of business bank statements showing business activity and transfers to personal
Qualifying income = eligible deposits ÷ # of statements
Up to 90% LTV available at top FICO/loan tiers
Business bank statements must reflect business activity + transfers to personal account
Same LTV matrix as Standard Doc and 1099

Business Bank Statements

Qualify on 12 or 24 months of business bank statements using one of three expense-ratio methods. Built for entrepreneurs and S-corp owners.

12 or 24 months of business bank statements
Method 1: Fixed Expense Ratio (50%)
Method 2: 3rd-party CPA / EA / tax preparer expense letter (min 10% ratio)
Method 3: 3rd-party prepared Profit & Loss Statement (CPA / EA / tax preparer)
Same Standard Doc LTV matrix — up to 90% LTV
Expense ratio cannot be less than 10% when CPA/EA-stated
The fixed 50% expense method does not require a third-party expense letter; the third-party ratio and P&L methods require qualified third-party support

Profit & Loss Statement Only

Qualify on a CPA/EA/CTEC/Tax-Attorney-prepared 12- or 24-month Profit & Loss statement — no bank statements required. Built for established self-employed borrowers with consistent business books.

12 or 24 months CPA / EA / CTEC / Tax Attorney prepared P&L
Preparer must attest they have completed or filed the borrower's most recent business tax return
Up to 80% LTV at the best FICO/loan tier
Maximum housing history: 1x30x12
Minimum credit-event seasoning: 36 months
Not available below 680 credit score

Written Verification of Employment (WVOE)

Qualify with a single FNMA Form 1005 (Written VOE) from the employer plus two months of personal bank statements showing the payroll deposits. Built for W-2 borrowers with non-traditional pay structures.

FNMA Form 1005 completed and signed by employer
Two most recent months of personal bank statements reflecting deposit(s) from the employer on each statement
Deposits must support at least 65% of the gross wage/salary reflected on the WVOE
Up to 80% LTV at the best FICO/loan tier
Maximum housing history: 1x30x12
Minimum credit-event seasoning: 36 months
Not available below 680 credit score

IRS Form 1099

Qualify on 1 or 2 years of 1099 income — ideal for independent contractors, gig workers, and commission-only earners who don't take traditional W-2 wages.

1- or 2-years of 1099s or 1099 transcripts
Minimum 2-year self-employment history (per 1003 application Employment section)
Fixed expense ratio: 10%
Qualifying income = 12- or 24-month average from 1099 totals minus expense factor
Up to 90% LTV available at top FICO/loan tiers (same as Standard Doc column)
YTD documentation required if 1099 reporting period is > 120 days from Note date
YTD must support ongoing receipt of income from the same source

Asset Utilization

Qualify on liquid assets divided by 84 (months) to produce a monthly income stream — perfect for retirees, high-net-worth borrowers, and asset-rich/income-light W-2 earners.

Eligible assets less down payment, out-of-pocket closing costs and required reserves, divided by 84 = monthly qualifying income
May be used as sole source of income or to supplement other income
Up to 80% LTV at the best FICO/loan tier
When supplementing other income, the minimum asset requirement is waived
Maximum housing history: 1x30x12
Minimum credit-event seasoning: 36 months
Use the lowest credit score among all borrowers as the decision credit score
Not available below 680 credit score

Indiana program limits and overlays

The following base matrices are subject to the state overlays below, property eligibility, credit history and reserves. Figures are maximums for qualifying files, not an approval or rate quote. For a primary residence the strongest standard, bank-statement and 1099 tiers allow up to 90% purchase LTV; P&L, WVOE and asset utilization use the separate alternative-documentation matrix.

Primary residence: standard, bank statement and 1099

FICO	Maximum loan	Purchase LTV	Rate/term LTV	Cash-out LTV
720	$1M	90%	85%	80%
720	$1.5M	90%	85%	80%
720	$2M	85%	80%	80%
720	$2.5M	80%	75%	75%
720	$3M	75%	70%	70%
720	$3.5M	70%	65%	Not eligible
720	$4M	70%	65%	Not eligible
700	$1M	90%	85%	80%
700	$1.5M	90%	85%	80%
700	$2M	85%	75%	70%
700	$2.5M	75%	70%	65%
700	$3M	75%	70%	65%
700	$3.5M	70%	65%	Not eligible
680	$1M	90%	85%	75%
680	$1.5M	85%	80%	75%
680	$2M	80%	75%	70%
680	$2.5M	75%	70%	65%
680	$3M	70%	65%	65%
660	$1M	80%	80%	75%
660	$1.5M	80%	75%	75%
660	$2M	75%	70%	65%
660	$2.5M	70%	65%	65%
640	$1M	80%	75%	70%
640	$1.5M	70%	65%	65%
640	$2M	65%	Not eligible	Not eligible
620	$1M	70%	70%	Not eligible

Primary residence: P&L, WVOE and asset utilization

FICO	Maximum loan	Purchase LTV	Rate/term LTV	Cash-out LTV
720	$1M	80%	75%	70%
720	$1.5M	80%	75%	70%
720	$2M	80%	75%	70%
720	$2.5M	75%	70%	70%
720	$3M	70%	Not eligible	Not eligible
700	$1M	80%	75%	70%
700	$1.5M	80%	75%	70%
700	$2M	80%	75%	70%
700	$2.5M	75%	70%	65%
700	$3M	70%	Not eligible	Not eligible
680	$1M	80%	75%	70%
680	$1.5M	80%	75%	70%
680	$2M	75%	70%	65%
680	$2.5M	70%	65%	60%

Second home / investment: standard, bank statement and 1099

FICO	Maximum loan	Purchase LTV	Rate/term LTV	Cash-out LTV
720	$1M	85%	80%	75%
720	$1.5M	85%	80%	75%
720	$2M	85%	80%	75%
720	$2.5M	80%	75%	75%
720	$3M	75%	70%	70%
720	$3.5M	70%	65%	Not eligible
720	$4M	Not eligible	Not eligible	Not eligible
700	$1M	85%	80%	75%
700	$1.5M	85%	80%	75%
700	$2M	85%	75%	70%
700	$2.5M	75%	70%	65%
700	$3M	75%	70%	65%
700	$3.5M	70%	65%	Not eligible
680	$1M	85%	80%	75%
680	$1.5M	85%	80%	75%
680	$2M	80%	75%	70%
680	$2.5M	75%	70%	65%
680	$3M	70%	65%	65%
660	$1M	80%	80%	75%
660	$1.5M	80%	75%	75%
660	$2M	75%	70%	65%
660	$2.5M	70%	65%	65%
640	$1M	80%	75%	70%
640	$1.5M	70%	65%	65%
640	$2M	65%	Not eligible	Not eligible
620	$1M	70%	70%	Not eligible

Second home / investment: P&L, WVOE and asset utilization

FICO	Maximum loan	Purchase LTV	Rate/term LTV	Cash-out LTV
720	$1M	80%	75%	70%
720	$1.5M	80%	75%	70%
720	$2M	80%	75%	70%
720	$2.5M	75%	70%	70%
720	$3M	Not eligible	Not eligible	Not eligible
700	$1M	80%	75%	70%
700	$1.5M	80%	75%	70%
700	$2M	80%	75%	70%
700	$2.5M	75%	70%	65%
700	$3M	Not eligible	Not eligible	Not eligible
680	$1M	80%	75%	70%
680	$1.5M	80%	75%	70%
680	$2M	75%	70%	65%
680	$2.5M	70%	65%	60%

Prime Time reserves: 3 months PITIA at 80% LTV or below; 6 months at 80.01–85%; 12 months above 85%. Loans above $1.5 million require 9 months; loans above $2.5 million require 12 months. Apply the highest applicable requirement. General maximum DTI is 50%; the limited full-documentation primary-residence exception requires a separate review.

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