DSCR loans in Illinois
Buy or refinance an Illinois rental by qualifying on the property’s income — not your tax returns, W-2s, or personal debt-to-income. Andes originates business-purpose DSCR loans in Chicago, Aurora, Naperville and across Illinois.
In most states, a DSCR loan is a straightforward trade: the rent covers the payment and the deal qualifies. Illinois adds a wrinkle no investor should ignore and that is the property-tax line. More on that below.
- No tax returns · no personal DTI
- From 640 credit scores
- Business purpose · available in 46 states
- No title seasoning
What is a DSCR loan in Illinois?
A DSCR loan qualifies on one figure: the debt-service coverage ratio — the property’s monthly rent divided by its full monthly payment, principal, interest, taxes, insurance, and any HOA (PITIA).
When the DSCR meets 1.0, the rent covers the payment; above it, the property cash flows. Simple math — except that in Illinois one input swings the result more than anywhere else: property taxes.
For the mechanics of the program itself, see our national DSCR loan guide.
Why Illinois is different: a Chicago rental can look like a bargain on price and still land under 1.0 once the tax bill is in the payment. Getting the DSCR right in Illinois starts with getting the tax line right — which is exactly what we walk through below.
What Illinois rents and prices are doing right now
The debt coverage ratio – this is the main metric of every DSCR loan.
For investors, the biggest question is centered around how much a property can generate on rent alone. Thus, it makes sense to know what Illinois rents are actually doing. The chart below tracks typical asking rent for single-family homes in Chicago, Rockford, Peoria and Springfield, updated monthly from Zillow’s ZORI series, with the underlying figures in a table beneath it.
Rent is only half the ratio. The other half is what you pay for the house — Illinois’ statewide median listing price is $324,950, and it varies widely by metro. Here is the current listing picture statewide:
Illinois rental market · single-family
Data through Aug 2026
| Metro | Typical asking rent | YoY change | Data through |
|---|---|---|---|
| Chicago | $2,556 | +4.4% | Aug 2026 |
| Rockford | $1,635 | +2.9% | Aug 2026 |
| Peoria | $1,312 | +4.6% | Aug 2026 |
| Springfield | $1,531 | +2.5% | Aug 2026 |
Data through Aug 2026 · updated monthly · source: Zillow (ZORI)
Illinois housing market
Realtor.com listing data · as of September 2026
Figures are Realtor.com listing data (what sellers are asking) — not sale prices. Source: Realtor.com via FRED (Federal Reserve Bank of St. Louis). Updates monthly.
Rent figures are typical asking rent for single-family homes — Source: Zillow (ZORI). Listing figures are Realtor.com median listing prices, not sale prices, published via FRED.
Who Illinois DSCR loans fit
Andes Mortgage originates DSCR loans in Chicago and across the state of Illinois.
With these loans, we solve a problem that most investors face: tax returns, write-offs or lack of income that doesn’t allow them to increase their rental portfolio.
A DSCR loan skips personal income, debt-to-income ratio and other hurdles that typical conventional mortgages impose and focuses on the property’s cash flow instead. Our Illinois DSCR loans allow investors to purchase, refinance and access equity via cash-out refinancing, HELOCs or HELOANs.
- Chicago investors buying two-flats, three-flats, and small multifamily that cash flow
- Self-employed and 1099 owners whose returns don't reflect what they really earn on their tax returns
- Out-of-state and BRRRR investors targeting Illinois cash flow — closing in an LLC
- Investors scaling past the ten-property limit that conventional financing caps you at
- Buyers targeting non-warrantable condos that conventional lenders decline outright
Want to know if DSCR is a good fit, or see what you’d qualify for? Run Mortgage Match — it takes less than 60 seconds and there’s no credit pull. Start Mortgage Match →
What are the requirements for a DSCR loan in Illinois?
DSCR terms are set by the investor lending shelf, not by the state.
Andes Mortgage works with 40+ investors across the country and we place your loan where it fits, not just where the lowest rate is offered, though, that’s also important for us.
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Parameter
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Andes Mortgage Illinois DSCR guidelines
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|---|---|
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Minimum credit score
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We work with as low as 640 credit score
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Max LTV — purchase (DSCR ≥ 1.0)
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Up to 85% for credit scores >700
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Max LTV — cash-out refinance
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Up to 75%
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DSCR 0.75–0.99 (reduced-ratio)
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Available — expect roughly a 5–10% LTV reduction vs. standard
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DSCR below 0.75 / no-ratio
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Available — typically to ~60–70% LTV at a higher credit score
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Loan amounts
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~$100K to $2.5M (minimum rises to ~$200K on sub-1.0 DSCR)
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Reserves
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3 months PITIA up to ~$1M; 6 months above ~$1M or on sub-1.0 DSCR
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Mortgage / rental history
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0x30x12 typical (no 30-day lates in 12 mo.)
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Property types
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SFR, PUD, townhome, 2–4 units, condos, and non-warrantable condos
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Rural property
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Allowed with up to 65% LTV
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Occupancy
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Business purpose / investment only
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Guidelines last verified: August 2026. Ranges reflect current wholesale investor guidelines and may change without notice. DSCR loans are business-purpose loans for non-owner-occupied property; this is not a commitment to lend.
DSCR loan rates in Illinois
Updated interest rates for DSCR loans in Illinois. Explore purchase and cash-out refinancing options with and without rate buydowns. Click build your scenario for a custom quote.
Rates as of Oct 2, 2026
These rates are a few days old — ask us for today's pricing.
Lower rate, more points
6.375%
1.912 points
Fewer points
6.750%
0.200 points
Up to 75% LTV
Lower rate, more points
6.375%
1.900 points
Fewer points
6.750%
no points
Up to 75% LTV
Lower rate, more points
6.375%
2.160 points
No points
6.875%
no points
Up to 70% LTV
Assumptions
- Credit score
- 760+
- Property type
- 1–4 unit investment
- Term
- 30-year fixed
- Prepayment penalty
- 3-year
- DSCR ratio
- 1.10+
- Max LTV
- 75%
Rates and points shown reflect Andes Mortgage's DSCR program ranges, synthesized from current wholesale pricing, and are illustrative, subject to change, and not a commitment to lend. Actual terms depend on a full review of your scenario.
DSCR loans are business-purpose financing priced nationally by program, so the pricing above applies across the states Andes serves — it isn't specific to Illinois.
Illinois DSCR loans under 1.0 ratio
There is no DSCR floor with Andes. We finance DSCR loans when the ratio fails to reach 1.0.
Illinois is the state most likely to push an otherwise-solid deal under 1.0 — not because the rent is weak, but because a Cook County tax bill can eat the difference.
Other lenders reject it outright. We don’t: a ratio below 1.0 simply moves to a different tier of the same program at a lower loan-to-value, so a strong Chicago rental with a heavy tax load still has a path.
The rent covers the payment. Best LTVs, widest credit range, lowest pricing.
A little short — often exactly where a high tax bill lands a Chicago deal. Still financeable at a modest LTV trade.
Qualify on down payment and credit instead of cash flow — typically to ~60–70% LTV.
If your Illinois rental is failing debt coverage, we have solutions for you under our “under 1.0 debt-coverage” program. See how below-1.0 DSCR financing works →
In Illinois, you'll want to underwrite the tax bill first so you don't get caught off guard with your DSCR
Two facts separate Illinois investors who make money from those who buy on the sticker price: the tax load and the tenant rules. Neither shows up on a listing. Here’s how the first one moves a real Chicago deal:
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Chicago SFR rental · $250,000 · $2,050/mo rent · 25% down
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Monthly
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|---|---|
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Principal & interest (~$187.5K loan)
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~$1,279
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Property tax — Cook County effective rate of 2.1%
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~$438
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Insurance
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~$115
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Full PITIA
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~$1,832
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DSCR ($2,050 ÷ $1,832)
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~1.12 — and the tax is ~24% of the payment
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Where investors are using DSCR loans in Illinois
Chicago & Cook County — the market
One of the largest, most liquid rental markets in the country, and where nearly all Illinois DSCR demand lives. Two-flats and three-flats are the classic play. The whole game is underwriting the tax bill and knowing the ordinance — get those right and the cash flow is real.
Rockford, Peoria & Springfield — the value end
Lower entry prices well below the Chicago metro, with their own steady rental demand. Smaller and less liquid, but a lighter tax picture in some counties can make the ratio easier to clear.
Property types we finance in Illinois with our DSCR loans
Single-family & PUD
The core of most Illinois DSCR portfolios.
2–4 units & townhomes
Chicago’s two-flats and three-flats — strong blended cash flow, multiple doors under one roof.
Condos & non-warrantable
Both financeable, including non-warrantable — common in Chicago’s condo stock.
Multifamily 5-9 units
Small-scale 5–9 unit multifamily can close under our commercial DSCR guidelines.
Note: our Illinois DSCR loan allows rural properties too, but capped at 65% LTV — worth knowing in Illinois. Not sure a specific address qualifies? Run Mortgage Match and we’ll confirm before you’re under contract.
Illinois DSCR loan calculator
Enter the property’s rent and payment — and use the real rate for the parcel’s own taxing jurisdiction, the county’s or the independent city’s, not a state average. If you are looking to get a DSCR loan in Chicago, this tool is a must-have. We’ll tell you the DSCR, which tier you land in, and which constraint is limiting your deal. No email required to see your result.
Frequently asked questions
What is a DSCR loan in Illinois?
A business-purpose mortgage for a non-owner-occupied Illinois rental, qualified on the property’s rent divided by its full PITIA rather than your personal income.
What are the requirements for a DSCR loan in Illinois?
A credit score from 640, a qualifying DSCR (no hard floor — sub-1.0 moves to reduced- or no-ratio tiers), 20–25%+ down, 3–6 months of reserves, and a non-owner-occupied property. Loans can vest in an LLC.
How much down payment do I need for an Illinois DSCR loan?
About 20–25% on a standard purchase; up to 85% LTV (15% down) with a 700+ score. Sub-1.0 deals carry lower LTV caps.
What does a DSCR appraisal cost in Illinois?
Roughly $750-$900 depending on the size of the property and amount of units. This is the average appraisal cost we see for DSCR loans in Chicago.
Can I buy an Illinois rental property through an LLC?
Yes. DSCR loans are business-purpose loans and can close in an LLC — how most Illinois investors hold rental property for liability and portfolio reasons. There’s also no limit on the number of DSCR loans you can hold. More on our guide: DSCR loan in an LLC .
What if my property’s DSCR is below 1.0?
You’re not disqualified — there’s no floor. 0.75–0.99 moves to reduced-ratio; below 0.75 to no-ratio. In Illinois, especially in Cook county, property taxes can cause a drop in the debt coverage ratio. See below-1.0 DSCR financing.
Which Illinois markets work best for DSCR investing?
Chicago for depth, liquidity, and small-multifamily; Rockford, Peoria, and Springfield for lower entry prices.
Do Illinois property taxes and Chicago's tenant ordinance affect my DSCR loan?
The taxes do, directly: property tax is part of PITIA, and Illinois’ high rates can move a deal across the 1.0 line, so we underwrite the parcel’s real bill. Chicago’s RLTO (and Cook County’s RTLO in the suburbs) don’t change whether you qualify — they’re operating rules for after you own the property — but they’re worth knowing before you close.
Related resources
Every investment-property program we offer in Illinois.
See if your Illinois deal qualifies
Run Mortgage Match and we’ll tell you which DSCR tier your property lands in and what you’d put down — no credit pull, no obligation. Hablamos español.
Andes Mortgage LLC · NMLS #2187991 · Equal Housing Lender. DSCR loans are business-purpose loans for non-owner-occupied investment property only, offered in 46 states. Andes Mortgage does not offer owner-occupied or consumer-purpose mortgage loans in Illinois. Figures shown are typical ranges from current wholesale lending guidelines as of August 2026 — not a single lender’s terms and not a commitment to lend. Program terms and eligibility vary by lender and are subject to change without notice. Real-estate tax rates are the 2026 base rates published by each county or independent city; payment figures are illustrative.