DSCR loans in Indiana
Buy or refinance an Indiana 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 across Indianapolis, Fort Wayne, South Bend, and Evansville.
Explore our DSCR loans for purchase, refinance, HELOCs and HELOANs.
- 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 Indiana?
DSCR stands for debt-service coverage ratio — the property’s monthly rent divided by its full monthly payment (principal, interest, taxes, insurance, and any HOA, together called PITIA).
At 1.0 the rent exactly covers the payment; above 1.0 it cash-flows on paper. That single number — not your personal income — qualifies the loan. For the full mechanics, see our national DSCR loan guide.
Indiana is one of the most dependable cash-flow markets in the country — an Indianapolis single-family rental commonly clears a 1.0+ DSCR on rent alone while property prices sit comfortably below the national median . And unlike states where taxes jump after you buy, Indiana caps property taxes as a share of assessed value, so the ratio you underwrite holds up. We break that down below.
What Indiana rents and real estate prices are doing right now
The debt coverage ratio – this is the main metric of every DSCR loan, everything else, comes secondary.
Lenders love when the property clears a 1.0 DSCR. As an investor, this number makes sense because it means that the property breaks even or cash flows.
Since the question is “can this income cover the debt” then it’s worth seeing what Indiana rents are actually doing.
The chart below tracks typical asking rent for single-family homes in Indianapolis, Fort Wayne, South Bend and Evansville. These figures are updated monthly from Zillow’s ZORI series, with the underlying figures in a table beneath it.
Indiana rental market · single-family
Data through Aug 2026
| Metro | Typical asking rent | YoY change | Data through |
|---|---|---|---|
| Indianapolis | $1,923 | +4.0% | Aug 2026 |
| Fort Wayne | $1,606 | +3.1% | Aug 2026 |
| South Bend | $1,431 | +5.5% | Aug 2026 |
| Evansville | $1,215 | +3.9% | Aug 2026 |
Data through Aug 2026 · updated monthly · source: Zillow (ZORI)
Rent is only half the ratio. The other half is what you pay for the house — Indiana’s statewide median listing price is $299,000.
Here is the current listing picture statewide:
Indiana 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 Indiana DSCR loans fit
Andes Mortgage originates DSCR loans in Indiana.
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 Indiana DSCR loans allow investors to purchase, refinance and access equity via cash-out refinancing, HELOCs or HELOANs.
- Business owners, self-employed, and 1099 contractors
- Self-employed borrowers who write off heavily against income, or haven’t filed yet
- Out-of-state investors who want to close in an LLC
- Borrowers looking to implement a BRRRR strategy
- 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 Indiana?
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 Indiana 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 Indiana
Updated interest rates for DSCR loans in Indiana. 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 Indiana.
Indiana DSCR loans under 1.0 ratio
There is no DSCR floor with Andes.
Where most lenders turn down a deal because the rent doesn’t cover the payment, a ratio under 1.0 doesn’t get rejected here — it moves to a different tier of the same program at a lower loan-to-value.
Although in Indiana, most deals often clear a 1.0 debt-coverage ratio, investors may come across situations where the property may be rented under market rent, or a rehab is needed to push up rents. Either scenario and this loan option fits for those where the rental income doesn’t cover the payment.
What investors covet and what lenders want to see when they are underwriting a Indiana DSCR loan. The rent covers the payment. You’re on the main program — best LTVs, widest credit range, lowest pricing.
The rent falls a little short. Still very financeable — expect roughly a 5–10% LTV reduction (a bit more down) in exchange for the lower ratio.
Even a property that doesn’t cash-flow on paper can be financed through a no-ratio structure — typically to ~60–70% LTV with a higher credit score.
If your Indiana 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 →
Why Indiana's property-tax caps make the DSCR easy to underwrite
In a lot of states, the tax figure you analyzed the deal on isn’t the one you end up paying — it reassesses, or it uncaps when you buy, and a deal that penciled at 1.05 slips under 1.0. As an investor, this can be disastrous if your income fails to cover the payment because the property taxes skyrocketed after the acquisition.
Indiana works differently. The state constitution caps property tax as a share of a property’s gross assessed value, by property class:
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Property class
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Property tax cap (of gross assessed value)
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|---|---|
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Owner-occupied homestead
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1%
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Other residential - including rentals
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2% <- your investment property
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Commercial & personal property
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3%
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For a rental, 2% is a hard ceiling — your annual property tax can’t exceed 2% of the assessed value, no matter what local rates do. That turns the scariest variable in a DSCR calc into a known quantity:
How the numbers can play out on an Indianapolis rental with a DSCR loan
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Indianapolis SFR rental · $180,000 · $1,600/mo rent · 25% down
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Monthly
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|---|---|
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Principal & interest (~$135K loan)
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~$921
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Property tax — capped at 2% of $180K ($3,600/yr)
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~$300 (Ceiling)
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Insurance
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~$85
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Full PITI
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~$1,306
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DSCR ($1,600 ÷ $1,306)
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~1.23 — and the tax line has a ceiling
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Indiana markets allow different strategies
Indianapolis - Depth & Liquidity
The state’s largest and most liquid rental market, a national cash-flow destination heavily bought by institutional SFR funds. Deepest inventory and exit options — but you’re competing with well-capitalized buyers for the best deals.
Fort Wayne, South Bend & Evansville — the yield end
Lower entry prices and stronger rent-to-price ratios. Fort Wayne and Evansville for buy-and-hold yield; South Bend for Notre Dame–driven college-town demand.
Property types we finance in Indiana with our DSCR loans
Single-family & PUD
Where most Indiana DSCR loans fit — detached single-family and planned-unit developments and more.
2–4 units & townhomes
Small multifamily and townhomes. Lower maintenance and multiple doors can represent more cash flow.
Condos & non-warrantable
Warrantable and non-warrantable condos both financeable — which matter especially in downtown Indianapolis.
Multifamily 5-9 units
Small-scale 5–9 unit multifamily can close under our commercial DSCR guidelines.
Note: our Indiana DSCR loan allows rural properties too, but capped at 65% LTV — worth knowing in the areas outside of Indianapolis, Fort Wayne and Evansville. Not sure a specific address qualifies? Run Mortgage Match and we’ll confirm before you’re under contract.
Indiana 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. 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 Indiana?
A business-purpose mortgage for a non-owner-occupied Indiana 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 Indiana?
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 Indiana 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 Indiana?
Roughly $750-$900 depending on the size of the property and amount of units.
Can I buy an Indiana rental property through an LLC?
Yes. DSCR loans are business-purpose loans and can close in an LLC — how most Indiana 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 Indiana most properties clear a 1.0 debt coverage but in those situations when it doesn’t, this loan suits perfectly. See below-1.0 DSCR financing.
Will my property taxes go up in Indiana after I buy?
Indiana’s property taxes are capped for investors at 2%. This makes it easy and predictable for investors to see what their rentals will yield after they close.
Which Indiana markets work best for DSCR investing?
Indianapolis is the anchor where you’ll find more inventory and higher rents, Fort Wayne, Evansville and South Bend for yields.
Related resources
See if your Indiana 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 Indiana. 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.