Lima One Capital DSCR Review: Complete Breakdown

Lima One Capital has built a reputation as one of the most comprehensive private lenders for real estate investors, offering everything from fix-and-flip loans to ground-up construction financing. Their DSCR loan program combines competitive rates with institutional backing, making them a serious contender for rental property financing.

Company Background

Lima One Capital was founded in 2013 and is headquartered in Greenville, South Carolina. Unlike many DSCR lenders that operate solely in the private lending space, Lima One has institutional backing from MFA Financial, a publicly-traded real estate investment trust. This relationship provides Lima One with significant capital resources and stability while maintaining their focus on real estate investors.

Since inception, Lima One has originated over $7 billion in loans across all 50 states, making them one of the largest private lenders in the investor space. The company offers a full suite of investor products:

• DSCR rental loans (our focus here)
• Fix-and-flip loans
• Bridge loans
• Ground-up construction loans
• Multifamily loans (5+ units)

Lima One DSCR Loan Overview

Program Highlights

• Loan amounts: $75,000 to $5 million (higher amounts considered for strong borrowers)
• Interest rates: 7.25% - 10.5% (as of Q1 2026)
• Loan terms: 30-year fixed, 5/1 ARM, 7/1 ARM, 10/1 ARM
• DSCR minimum: 1.0 (0.90 considered with compensating factors)
• Credit score minimum: 660 (640 in some cases)
• Maximum LTV: 80%
• Down payment: 20% minimum
• Property types: 1-4 units, condos, townhomes, PUDs
• Geographic coverage: All 50 states
• Typical closing time: 20-30 days
• Prepayment penalty: Optional (choose between penalty or slightly higher rate)

Loan Products Within DSCR

Lima One offers three variations of their DSCR product:

Standard DSCR: For properties with DSCR ≥ 1.0 and borrowers with 660+ credit. This is their core product with the best rates.

Low-DSCR Program: For properties with DSCR 0.90-0.99. Requires 25% down payment and higher credit scores (680+). Rates are 0.50-0.75% higher than standard.

High-Balance DSCR: For loans above $1.5 million. Typically requires stronger DSCR (1.15+) and more reserves, but can offer slightly better rates for qualified borrowers.

Interest Rates and Fees

Current Rate Structure (Q1 2026)

Lima One's rates are competitive, especially for borrowers with strong credit and healthy DSCR ratios.

Base Rates by Product Type:

• 30-year fixed: 7.25% - 9.50%
• 5/1 ARM: 7.00% - 9.25% (typically 0.25% below fixed)
• 7/1 ARM: 7.125% - 9.375% (typically 0.125% below fixed)
• 10/1 ARM: 7.25% - 9.50% (similar to fixed with longer rate lock)

Rate Adjustment Factors

Credit Score:

• 760+: -0.25% (rate discount)
• 720-759: Base rate
• 700-719: +0.25%
• 680-699: +0.50%
• 660-679: +0.75%
• 640-659: +1.00% (if approved)

DSCR Ratio:

• 1.35+: -0.125%
• 1.25-1.34: Base rate
• 1.10-1.24: +0.125%
• 1.00-1.09: +0.375%
• 0.90-0.99: +0.75%

Loan-to-Value:

• 60-65% LTV: -0.25%
• 65-70% LTV: -0.125%
• 70-75% LTV: Base rate
• 75-80% LTV: +0.25%

Property Type:

• Single-family: Base rate
• 2-unit: Base rate
• 3-4 unit: +0.125%
• Condo (warrantable): +0.125%
• Condo (non-warrantable): +0.375%

Fee Structure

Origination Fee: 1.0-2.0 points depending on loan size and complexity

• Loans over $1M: Typically 1.0-1.25 points
• Loans $500K-$1M: Typically 1.25-1.5 points
• Loans under $500K: Typically 1.5-2.0 points

Processing and Underwriting: Included in origination fee (no separate charges)

Third-Party Fees:

• Appraisal: $450-$750 (depending on property type and location)
• Credit report: $50-$75
• Flood certification: $15-$25
• Title and escrow: Market rate (varies by state and title company)

Prepayment Penalty Options:

Option 1: Standard penalty structure (3-2-1 step-down)

• Year 1: 3% of loan balance
• Year 2: 2% of loan balance
• Year 3: 1% of loan balance
• Year 4+: No penalty

Option 2: No prepayment penalty

• Add 0.375-0.50% to interest rate
• Can refinance or sell anytime without penalty

Rate Lock: 30-day lock included; 45-day lock available for additional 0.125%

Eligibility and Requirements

Borrower Qualifications

Credit Score: Minimum 660 FICO. Lima One pulls credit from all three bureaus and uses the middle score. Borrowers with scores 660-699 should expect significant rate adjustments and may need compensating factors like higher down payment or strong reserves.

Credit History: Must demonstrate responsible credit behavior in the past 24 months. Isolated late payments may be acceptable with explanation, but patterns of delinquency will result in denial.

Bankruptcies and Foreclosures:

• Chapter 7 bankruptcy: 4 years seasoning required
• Chapter 13 bankruptcy: 2 years from discharge or 4 years from dismissal
• Foreclosure: 4 years seasoning
• Short sale: 2 years seasoning
• These waiting periods are longer than some competitors but reflect Lima One's institutional backing

Reserves: Required reserves depend on the number of financed properties:

• 1-4 financed properties: 6 months PITIA
• 5-9 financed properties: 9 months PITIA
• 10+ financed properties: 12 months PITIA

Reserves must be in liquid accounts (checking, savings, stocks, bonds). Retirement accounts may be considered at 70% value.

Experience: No minimum real estate investing experience required. However, experienced investors (3+ rental properties) may receive slight pricing advantages.

Citizenship: U.S. citizens and permanent residents with Social Security Numbers. Green card holders are eligible. Foreign nationals may be considered on a case-by-case basis but will face higher rates and down payment requirements.

Property Requirements

Property Types:

Eligible:

• Single-family residences
• 2-4 unit multifamily properties
• Condos (warrantable and some non-warrantable)
• Townhomes
• Planned unit developments (PUDs)

Ineligible:

• Properties over 4 units (see Lima One's multifamily division)
• Co-ops
• Mobile homes or manufactured housing
• Properties on leased land
• Mixed-use properties with >25% commercial space

Property Condition: Must be in habitable, rent-ready condition. Lima One is stricter on condition than some competitors. Properties requiring more than $10,000 in repairs should use Lima One's bridge or rehab products first.

Property Age: No maximum age, but properties built before 1940 may require additional inspection and engineering reports.

Location: Available in all 50 states including Alaska and Hawaii. Lima One has experience in all markets from rural to urban, though extremely remote properties may require additional due diligence.

Property Value: Minimum property value of $75,000. No stated maximum, but loans above $3 million require additional underwriting.

Occupancy: Must be non-owner occupied rental property. Second homes and primary residences are not eligible under the DSCR program.

DSCR Calculation

Lima One uses a standardized approach to calculating DSCR:

Income Side:

• Uses the LESSER of actual rent (with current lease) or appraised market rent
• If property is vacant, uses appraised market rent
• Does NOT apply a vacancy factor (full rental income is used)
• Short-term rental income IS allowed but requires 2 years history and is calculated conservatively

Expense Side:

• Principal and interest payment
• Property taxes
• Homeowners insurance
• HOA/condo fees (if applicable)
• Mortgage insurance (if applicable)

Example:

• Appraised rent: $3,000/month
• Current lease: $2,850/month (Lima One uses $2,850)
• P&I: $2,100
• Taxes: $450
• Insurance: $175
• HOA: $125
• Total debt service: $2,850
• DSCR: $2,850 ÷ $2,850 = 1.00

This is a break-even scenario and represents Lima One's minimum for standard pricing.

Application Process

Lima One has invested heavily in technology to streamline the application and underwriting process.

Step-by-Step Timeline

Day 1: Initial Application (30 minutes)

• Complete online application through Lima One's portal
• Provide basic borrower and property information
• Soft credit pull for preliminary qualification
• Receive initial feedback within 24 hours

Days 2-5: Document Submission Required documents:

• Government-issued photo ID
• Lease agreement (if property currently rented) or market rent analysis
• Insurance declaration page or quote
• Bank statements (most recent 3 months for reserve verification)
• Purchase contract (for purchases) or current mortgage statement (for refinances)
• LLC or entity documents (if applicable)

Not required:

• Tax returns
• W-2s or pay stubs
• Employment verification
• Personal financial statement (unless borderline qualification)

Days 5-12: Appraisal

• Lima One orders appraisal within 2-3 days of receiving complete documentation
• Appraisal includes full interior/exterior inspection and rental market analysis
• Typical turnaround: 5-7 business days
• Borrower pays appraiser directly or fee is added to closing costs

Days 12-18: Underwriting

• Full underwriting review of credit, property, and documentation
• Underwriter issues conditional approval with any required conditions
• Common conditions include:
  • Proof of insurance binder
  • Updated bank statements
  • Verification of property repairs (if any identified during appraisal)
  • Entity formation documents

Days 18-22: Clearing Conditions

• Borrower submits requested documentation
• Underwriter reviews and clears conditions
• Loan receives "Clear to Close" status

Days 22-28: Closing

• Closing documents prepared and sent to title company
• Title company schedules signing appointment
• Borrower signs documents
• Funds typically disburse 1-2 business days after signing

Total Average Timeline: 25-30 days from application to funding

What Makes Lima One's Process Efficient

Institutional Systems: Unlike smaller lenders, Lima One has invested in technology and systems that reduce manual bottlenecks.

In-House Processing: Most functions are handled internally rather than outsourced, improving communication and speed.

Dedicated Account Managers: Borrowers are assigned a single point of contact who stays with the loan from application to closing.

Clear Communication: Lima One's portal provides real-time status updates, and the team is responsive to emails and calls.

Pros of Lima One Capital DSCR Loans

1. Institutional Stability with Private Lending Flexibility

Lima One's backing by MFA Financial provides financial stability and competitive pricing while maintaining the flexibility and speed of a private lender.

2. Competitive Rates for Strong Borrowers

Borrowers with 720+ credit and 1.2+ DSCR can access rates in the low 7% range—among the best in the DSCR space.

3. True 50-State Coverage

Unlike some competitors with geographic restrictions, Lima One actively lends in all 50 states including challenging markets.

4. Comprehensive Product Suite

Beyond DSCR loans, Lima One offers fix-and-flip, bridge, construction, and multifamily products. This allows you to work with one lender across different deal types and reduces the learning curve.

5. Strong Technology Platform

The online portal is intuitive, provides real-time updates, and includes document storage and milestone tracking—better than many competitors.

6. Portfolio Lending Options

Investors with multiple properties can access portfolio pricing and consolidated underwriting, potentially saving time and money.

7. Experienced Team

Lima One's underwriters and account managers understand real estate investing. They can move quickly on straightforward deals and work through complexities on unusual ones.

8. No Prepayment Penalty Option

While it costs a bit more in rate, having the option to choose no prepayment penalty provides flexibility that some lenders don't offer.

9. Allows Both Fixed and ARM Products

The ability to choose between 30-year fixed and various ARM terms lets you optimize for your hold period and rate strategy.

10. Transparent Pricing

Lima One provides detailed rate sheets and is upfront about fees. You won't encounter surprise costs at closing.

Cons of Lima One Capital DSCR Loans

1. Stricter Property Condition Requirements

Lima One is pickier about property condition than some competitors. Cosmetic repairs may be acceptable, but anything structural or mechanical often requires bridge financing first.

2. Higher Minimum DSCR Than Some Competitors

The 1.0 DSCR minimum (0.90 with compensating factors) is higher than lenders like New Silver (0.75) or Easy Street Capital (0.80), limiting options in low-cash-flow markets.

3. Longer Bankruptcy/Foreclosure Seasoning

The 4-year waiting period for bankruptcies and foreclosures is twice as long as some competitors who accept 2 years.

4. Higher Reserves for Multiple Properties

Requiring 12 months reserves for investors with 10+ financed properties can tie up $50,000+ in cash that could otherwise be deployed.

5. Moderate Origination Fees

At 1-2 points, fees are average but not the lowest. Some competitors offer 0.5-1 point origination for strong borrowers.

6. Rate Premiums for Condos

The pricing adjustments for condos, especially non-warrantable condos, can make Lima One less competitive for these property types.

7. Not Ideal for Truly Marginal Borrowers

Borrowers with credit scores in the 640s or DSCR below 0.95 will find better options with lenders specializing in more flexible underwriting.

8. Closing Times Not the Fastest

While 25-30 days is solid, it's not as fast as lenders like Kiavi who can close in 15-20 days for simple deals.

Lima One vs. Key Competitors

vs. Kiavi

Rates: Lima One often 0.125-0.25% lower for borrowers with 720+ credit
Speed: Kiavi typically 5-10 days faster
Flexibility: Lima One more flexible on property types; Kiavi more flexible on DSCR
Verdict: Lima One for best rates with great credit; Kiavi for speed and marginal DSCR

vs. Visio Lending

Rates: Very similar for qualified borrowers (740+ credit)
Products: Lima One has broader suite (construction, bridge); Visio focused on DSCR
Experience: Visio requires experience; Lima One accepts first-timers
Verdict: Visio slightly better rates for experienced investors; Lima One for one-stop shopping

vs. New Silver

Rates: Lima One consistently 0.50-0.75% lower
Minimums: New Silver accepts lower credit (down to 620) and DSCR (down to 0.75)
Experience: Neither requires experience
Verdict: Lima One for better rates; New Silver if you're marginal on credit/DSCR

vs. RCN Capital

Specialization: RCN stronger in fix-and-flip; Lima One stronger in long-term rentals
Rates: Similar for DSCR products
Construction: Both offer construction, but Lima One's terms are often more competitive
Verdict: Lima One for rental focus; RCN for flip-heavy portfolios

vs. Griffin Funding

Rates: Griffin Funding often 0.25% lower for California properties
Coverage: Griffin primarily California; Lima One nationwide
Local Knowledge: Griffin better for California-specific regulations
Verdict: Griffin for California deals; Lima One everywhere else

Ideal Borrower Profile

Who Should Choose Lima One

Experienced Investors Building Portfolios: The portfolio lending options and product variety make Lima One ideal for investors who'll need multiple loan types over time.

Quality-Credit Borrowers: If you have 700+ credit and 1.15+ DSCR, Lima One's rates are highly competitive.

Investors in All 50 States: True nationwide coverage with local expertise in each market.

Value-Focused Investors: Those who prioritize long-term value (good rates, reliable service) over absolute lowest cost or fastest closing.

Self-Employed Professionals: Like all DSCR lenders, no income verification—but Lima One's professional approach appeals to high-earning self-employed borrowers.

Buy-and-Hold Investors: The 30-year fixed options and reasonable prepayment penalty structures align well with long-term hold strategies.

Who Should Look Elsewhere

Marginal Credit Borrowers (640-680): Will pay significant rate premiums; better off with more flexible lenders.

Low-DSCR Properties: If your property has DSCR below 0.95, you'll face challenges or high rates with Lima One.

Speed-Obsessed Buyers: If you need to close in 10-15 days, faster lenders exist.

Distressed Property Investors: The strict condition requirements mean value-add deals often require bridge financing first.

First-Time Investors with Marginal Deals: While Lima One accepts first-timers, they're most competitive for strong deals. Marginal first-time investors may find better terms at more flexible lenders.

Tips for Success with Lima One

1. Leverage Multiple Products

If you're doing fix-and-flips and buy-and-holds, use Lima One for both. Relationship building can lead to better pricing and faster approvals.

2. Optimize Your DSCR

If you're close to a DSCR threshold (e.g., 1.08), see if you can improve it to 1.10 or better through a slightly larger down payment. The rate improvement often justifies it.

3. Choose the Right Term

If you plan to hold 5-7 years, the 7/1 ARM saves 0.125% with minimal rate risk. For longer holds, the 30-year fixed provides peace of mind.

4. Negotiate on Large Loans

On loans above $1 million, there's often room to negotiate origination fees down to 0.75-1.0 points.

5. Provide Clean Documentation Early

Lima One values organized, complete documentation. Providing everything upfront speeds underwriting and builds goodwill.

6. Consider the Prepayment Penalty Trade-Off

Run the math on whether paying 0.40% higher rate for no prepayment penalty makes sense. If you might refinance within 3 years, it often does.

7. Ask About Portfolio Pricing

If you're planning multiple acquisitions, ask about portfolio programs before your first loan. You might get better terms from the start.

Real-World Case Studies

Case Study 1: Experienced Investor in Secondary Market

• Profile: 740 credit, 6 existing rentals, purchasing 7th property
• Property: Single-family in Indianapolis, $220K purchase, $1,850 rent
• Loan Terms: 80% LTV ($176K), 30-year fixed at 7.50%, 1.25 points origination
• DSCR: 1.18
• Outcome: Smooth closing in 26 days. Competitive rate for profile. Portfolio pricing kicked in on property #8.

Case Study 2: First-Time Rental Investor

• Profile: 690 credit, no rental experience, purchasing first investment property
• Property: 2-unit property in Columbus, OH, $310K purchase, $2,700 total rent
• Loan Terms: 75% LTV ($232,500), 30-year fixed at 8.25%, 1.75 points origination
• DSCR: 1.05
• Outcome: Approved despite no experience. Closing took 31 days due to first-timer learning curve. Fair rate given modest DSCR.

Case Study 3: Strong Borrower, Premium Market

• Profile: 780 credit, 10 years experience, refinancing existing rental
• Property: Single-family in Austin, TX, $485K value, $3,200 rent
• Loan Terms: 70% LTV ($339,500), 7/1 ARM at 7.125%, 1.0 point origination
• DSCR: 1.32
• Outcome: Excellent rate and terms. Could have negotiated fees lower but closing in 22 days was priority. Obtained portfolio pricing for future deals.

Final Verdict

Rating: 4.3/5

Lima One Capital represents the institutional side of DSCR lending done right. They combine competitive rates, professional service, and product variety in a way that few competitors match.

Choose Lima One when:

• You have good credit (700+) and healthy DSCR (1.1+)
• You value reliability and professional service
• You want potential for a long-term lending relationship
• You need access to multiple loan products (DSCR, bridge, construction)
• You're investing in any of the 50 states

Look elsewhere when:

• Your credit is below 680 or DSCR below 1.0
• You need absolute fastest closing times (under 20 days)
• You're financing distressed properties
• You can qualify for conventional financing at significantly lower rates

Bottom Line

Lima One Capital has earned its position as a top-tier DSCR lender through consistent execution, fair pricing, and genuine understanding of investor needs. They're not trying to be everything to everyone—instead, they focus on serving credit-worthy investors with quality properties.

For investors who fit Lima One's target profile, you'll find competitive rates, smooth processes, and a lender you can build a relationship with over multiple deals. The institutional backing provides confidence that they'll be around for the long haul, while their private lending roots keep them agile and investor-focused.

If you're building a serious rental property portfolio and want a lender who can grow with you, Lima One Capital deserves a spot on your short list.