Introduction: Why Georgia Is a Hot Market for DSCR Loans
From the booming rental demand in Atlanta to the historic charm of Savannah, Georgia is quickly becoming a hotspot for real estate investors. The state offers strong population growth, affordable home prices, and a mix of urban, suburban, and vacation rental opportunities.
But financing investment properties here—especially as a self-employed buyer or LLC—can be tough with traditional mortgages.
That’s where DSCR loans (Debt Service Coverage Ratio loans) come in. These investor-focused loans let you qualify based on rental income, not personal income, making them ideal for today’s savvy investors.
What Is a DSCR Loan and How Does It Work in Georgia?
A DSCR loan allows you to finance an investment property based on how much rental income it generates—not how much money you make personally.
DSCR Formula:
DSCR = Monthly Rent / Monthly PITIA
(PITIA = Principal, Interest, Taxes, Insurance, HOA if applicable)
Most Georgia lenders look for a DSCR of 1.0–1.25+, meaning the property at least breaks even or cash flows.
✅ No W2s, pay stubs, or DTI calculations required—just property performance.
Why Georgia Is Ideal for DSCR Lending
1. Strong Rental Demand
Georgia’s major metros—especially Atlanta—are experiencing high in-migration and growing rental demand. This supports higher monthly income and easier DSCR approval.
2. Affordable Entry Points
In many parts of the state, properties can be acquired for under $300K, making it easier to meet DSCR requirements with moderate rents.
3. LLC-Friendly State
Georgia allows real estate to be held in LLCs without major red tape, and most DSCR lenders prefer or allow entity-based ownership.
4. Growing STR and MTR Markets
Short-term and mid-term rentals thrive in markets like Savannah, Blue Ridge, and parts of metro Atlanta—perfect for DSCR-backed financing using projected STR income.
Best Markets in Georgia for DSCR Loan Investing
Atlanta Metro
- Median Price: ~$385,000
- Avg. Rent: ~$2,200 (higher in downtown and Midtown)
- Ideal for: Long-term and mid-term rentals
Savannah
- Median Price: ~$325,000
- Avg. Rent: ~$2,000
- Ideal for: STRs, MTRs, and tourism-based investing
Augusta
- Median Price: ~$260,000
- Avg. Rent: ~$1,600
- Ideal for: Military rentals and cash-flow focused buyers
Macon & Columbus
- Median Price: ~$220,000
- Avg. Rent: ~$1,400
- Ideal for: First-time investors using DSCR to scale
Blue Ridge / North Georgia Mountains
- Great for: STRs and vacation rental investing using AirDNA-based DSCR projections
DSCR Loan Requirements in Georgia (Typical Guidelines)
| Requirement | Typical Range |
| Credit Score | 640–680+ |
| Down Payment | 20–25% |
| DSCR Minimum | 1.0–1.25 (some allow <1.0 with reserves) |
| Ownership Type | LLC or individual |
| Property Types | 1–4 unit, STR, MTR, townhome, condo |
| Reserves | 3–12 months of PITIA |
| Loan Amount | $100K – $2.5M+ |
| Closing Timeline | 2–4 weeks |
Using DSCR Loans for Airbnb or STR Properties in Georgia
Yes, you can use a DSCR loan to finance a short-term rental in Georgia—as long as the city or county allows it.
STR-Friendly Georgia Markets:
- Atlanta (specific zoning only)
- Savannah (permitted in tourism zones)
- Blue Ridge
- Helen
- Tybee Island
- Ellijay
- Dahlonega
Lenders May Require:
- AirDNA income projections
- Historical STR income (if available)
- Proof of STR zoning or permit (if required)
- Property management agreement or self-management plan
💡 Tip: DSCR lenders vary in how they underwrite STR income—some use market rent, others allow projected gross income with AirDNA support.
Real-World Example: DSCR Loan for a Duplex in Atlanta
Investor Profile: Marcus, full-time Uber driver and investor
- Bought a $450,000 duplex in East Atlanta
- Rented both units: $2,350 + $2,250 = $4,600/month
- Monthly PITIA: $3,250 → DSCR = 1.41
- Closed in LLC with 25% down
- No income verification or DTI ratio required
Now Marcus cash flows $1,000+/month and is using equity for his next deal in Augusta.
Top DSCR Lenders Active in Georgia
- Visio Lending (great for STRs)
- Lima One Capital (based in Greenville, SC—strong regional presence)
- New Silver
- Angel Oak Mortgage Solutions
- CoreVest
- Kiavi
- Easy Street Capital
Each lender has different DSCR minimums, reserve requirements, and STR policies, so compare terms or work with an investor-friendly broker.
Tips to Strengthen Your DSCR Application in Georgia
- Choose a property with strong rent comps and cash flow
- Get a Form 1007 Rent Schedule with your appraisal
- Keep your credit score above 680
- Have at least 6 months of reserves
- Check local zoning if buying STRs
- Show AirDNA projections or booking history for short-term income
Final Thoughts: Use DSCR Loans to Build Your Georgia Portfolio
From Atlanta’s growing suburbs to Savannah’s tourism districts, Georgia offers diverse rental property opportunities for both cash flow and appreciation.
DSCR loans make it easy to tap into these markets—without income verification, DTI calculations, or personal financial limitations.
Whether you’re acquiring a duplex in East Point, an Airbnb in Tybee Island, or a cash-flowing fourplex in Augusta, DSCR loans give you the speed, flexibility, and scale to grow your portfolio in Georgia.
Our advise is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
