RCN Capital DSCR Review: What Investors Need to Know

RCN Capital has built its reputation primarily as a fix-and-flip lender, but their DSCR rental loan program has quietly become a solid option for buy-and-hold investors. With competitive rates, flexible underwriting, and the ability to bundle different loan products, RCN serves active investors who need a one-stop shop—but is their DSCR product competitive enough to choose over specialized rental lenders?

About RCN Capital

RCN Capital was founded in 2010 and is headquartered in Glastonbury, Connecticut. Originally focused on short-term bridge and fix-and-flip loans, the company expanded into long-term rental financing as their client base evolved from active flippers to buy-and-hold investors.

The company has funded over $6 billion in loans since inception, working with thousands of real estate investors nationwide. RCN operates in 40+ states and maintains a strong focus on repeat business—over 70% of their loans come from returning borrowers.

RCN's core products include:

• Fix-and-flip loans (their specialty)
• Bridge loans
• DSCR rental loans (our focus)
• New construction loans
• Ground-up construction financing

This product diversity appeals to active investors who transition between flipping and rental strategies.

RCN DSCR Loan Overview

Program Details

• Loan amounts: $100,000 to $3 million ($5M considered for exceptional borrowers)
• Interest rates: 7.50% - 10.75% (as of Q1 2026)
• Loan terms: 30-year fixed, 5/1 ARM, 7/1 ARM
• DSCR minimum: 1.0 (0.90 with compensating factors)
• Credit score minimum: 660
• Maximum LTV: 80% (75% for first-time rental investors)
• Down payment: 20-25%
• Property types: 1-4 units, single-family, condos, townhomes
• Coverage: 40+ states
• Closing time: 21-30 days
• Experience required: Minimum 1 completed real estate transaction (can be flip or rental)

RCN's Positioning

RCN sits in the middle of the DSCR lending market:

• Not as cheap as premium lenders (Visio, Lima One)
• Not as flexible as high-cost lenders (Easy Street, New Silver)
• Strong on relationship building and repeat business
• Best for investors who also use bridge/flip products

Interest Rates and Fees

Current Rate Structure

Base Rates:

• 30-year fixed: 7.50% - 10.75%
• 5/1 ARM: 7.25% - 10.50%
• 7/1 ARM: 7.375% - 10.625%

Rate Adjustments

Credit Score:

• 760+: -0.25%
• 720-759: Base rate
• 700-719: +0.375%
• 680-699: +0.625%
• 660-679: +1.00%

DSCR Ratio:

• 1.30+: -0.125%
• 1.20-1.29: Base rate
• 1.10-1.19: +0.25%
• 1.00-1.09: +0.50%
• 0.90-0.99: +0.875% (requires 25% down)

Loan-to-Value:

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

Experience Level:

• 10+ transactions: -0.25%
• 5-9 transactions: -0.125%
• 2-4 transactions: Base rate
• 1 transaction: +0.25%

This experience-based pricing rewards active investors—RCN's core market.

Property Type:

• Single-family: Base rate
• 2-unit: +0.125%
• 3-4 unit: +0.25%
• Condo: +0.25%

Relationship Pricing:

• First RCN loan: Base rate
• 2-4 previous loans: -0.125%
• 5+ previous loans: -0.25%

This repeat borrower discount is unique and valuable for active investors.

Fee Structure

Origination: 1.5-2.5 points

• Loans over $750K: 1.5 points
• Loans $400K-$750K: 2 points
• Loans under $400K: 2.5 points
• Repeat borrowers: Often 0.25-0.50 points lower

Processing and Underwriting: $995 (not included in origination)

Third-Party Costs:

• Appraisal: $500-$700
• Credit report: $50
• Flood cert: $20
• Title and escrow: Market rate

Prepayment Penalties:

Standard: 3-2-1 step-down

• Year 1: 3%
• Year 2: 2%
• Year 3: 1%
• Year 4+: None

No-penalty option: Add 0.50% to rate

The 3-year penalty is shorter than many competitors (often 5 years), providing more flexibility.

Eligibility Requirements

Borrower Qualifications

Credit Score: Hard minimum of 660. RCN rarely makes exceptions below this threshold, even with compensating factors.

Credit History: Must demonstrate 24 months of responsible credit management. Isolated 30-day lates acceptable if over 12 months old; multiple recent lates or 60+ day lates result in denial.

Real Estate Experience: Must have completed at least ONE of:

• Purchased and held a rental property (current or past)
• Completed a fix-and-flip project
• Purchased and sold any investment property
• Managed rental properties professionally

Unlike Visio (rental experience required) or Easy Street (no experience required), RCN accepts any real estate transaction as qualifying experience—appealing to flippers transitioning to rentals.

Bankruptcies and Foreclosures:

• Chapter 7: 4 years from discharge
• Chapter 13: 2 years from discharge
• Foreclosure: 4 years from completion
• Short sale: 2 years from completion

Reserves: Required reserves based on portfolio size:

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

Reserves can be demonstrated through bank accounts, stocks, bonds, or retirement accounts (counted at 70% value).

Citizenship: U.S. citizens and permanent residents. Foreign nationals not accepted in DSCR program (though may qualify for RCN's bridge products).

Property Requirements

Eligible Properties:

• Single-family residences
• 2-4 unit multifamily
• Condos (warrantable)
• Townhomes
• PUDs

Property Condition: Must be in good, habitable condition. RCN is stricter than some competitors—properties requiring more than $5,000 in repairs should use RCN's bridge loan first.

Property Age: No maximum, but pre-1940 properties may require engineering inspection.

Location: Available in 40+ states. Not available in: Alaska, Hawaii, North Dakota, South Dakota, Vermont, Nevada, Oregon, Idaho, Montana, Wyoming.

Occupancy: Must be investment property, non-owner occupied.

Minimum Property Value: $100,000

DSCR Calculation

RCN uses standard industry methodology:

Income: Lower of actual rent (per lease) or appraised market rent. No vacancy factor applied.

Expenses: P&I + property taxes + insurance + HOA fees + any other property-level debt

Formula: DSCR = Monthly Rent ÷ Monthly PITIA

Special Consideration: For 3-4 unit properties, RCN may apply a small vacancy factor (5%) on the income side, making qualification slightly harder for small multifamily.

Short-Term Rentals: RCN does NOT accept Airbnb/VRBO income for DSCR calculation. Properties must have traditional long-term leases.

Application Process

Step-by-Step Timeline

Day 1-3: Application and Pre-Qualification

• Complete online application (15-20 minutes)
• Provide basic property and borrower information
• Soft credit pull
• Preliminary rate quote within 24-48 hours

Day 3-7: Document Submission Required documents:

• Government-issued photo ID
• Proof of real estate transaction (deed, HUD-1, or tax return Schedule E)
• Lease agreement for subject property
• Insurance declaration or quote
• 3 months bank statements
• Purchase contract (for purchases) or mortgage statement (for refinances)
• LLC/trust documents if applicable

Day 7-14: Appraisal

• RCN orders appraisal
• Full interior/exterior inspection with rental analysis
• Typical turnaround: 5-7 business days

Day 14-21: Underwriting

• Full underwriting review
• Title ordered
• Conditional approval issued
• Common conditions: insurance binder, updated bank statements, payoff statement

Day 21-25: Clearing Conditions

• Borrower submits required documentation
• Final underwriting review
• Clear to close issued

Day 25-30: Closing

• Closing disclosure sent (3-day waiting period)
• Schedule signing with title company
• Sign documents
• Fund 1-2 days after signing

Average Timeline: 28-30 days from application to funding.

Process Notes

RCN's process is professional but not particularly fast. The 28-30 day average is solid but unexceptional. Borrowers value the communication and transparency more than speed.

Pros of RCN Capital DSCR Loans

1. Relationship Pricing Benefits

The repeat borrower discounts (-0.125% to -0.25% on rate, lower fees) add up quickly for active investors. After 5 loans, you're getting meaningfully better terms.

2. Accepts Flip Experience

Unlike lenders requiring rental experience, RCN accepts fix-and-flip transactions as qualifying experience. Perfect for flippers transitioning to buy-and-hold.

3. Product Bundling

Using RCN for both bridge loans and DSCR rentals streamlines operations. One relationship, one underwriting team, consistent documentation.

4. Competitive Rates for Experienced Investors

With relationship and experience discounts, active investors can access rates competitive with premium lenders.

5. Shorter Prepayment Penalty

The 3-year (3-2-1) penalty vs. 5-year penalties at many competitors provides more flexibility for investors who might refinance or sell.

6. Professional Service

RCN's staff understands active investors. Communication is clear, timelines are met, and the team handles complexities well.

7. Portfolio Loan Options

Investors with multiple properties can bundle financing, potentially improving terms and reducing overhead.

8. Strong Technology Platform

The online portal provides real-time status updates, document management, and messaging—better than many competitors.

9. Institutional Stability

RCN has been around since 2010 with strong institutional backing, providing confidence they'll be around long-term.

10. Flexible on Complex Situations

Self-employment, multiple LLCs, complex structures—RCN handles these better than rigid institutional lenders.

Cons of RCN Capital DSCR Loans

1. Higher Rates Than Premium Lenders

For borrowers with 740+ credit and 1.2+ DSCR, RCN's rates are typically 0.25-0.75% higher than Visio or Lima One.

2. Experience Requirement Excludes True First-Timers

While easier than Visio (which requires rental experience), RCN still excludes absolute first-time investors with no previous transactions.

3. Limited Geographic Coverage

Not available in 10 states including some large markets (Nevada, Oregon). This limits investor options.

4. Doesn't Accept Short-Term Rental Income

In markets where STR is common, RCN's refusal to consider Airbnb income is a significant limitation.

5. Strict Property Condition Requirements

The low tolerance for deferred maintenance means value-add properties often require bridge financing first, adding complexity and cost.

6. High Processing Fees

The $995 processing/underwriting fee is higher than many competitors who include these in origination.

7. First-Timer Experience Premium

New borrowers pay +0.25% for lack of history with RCN, penalizing you before building a relationship.

8. Limited High-Balance Options

The $3M maximum (with $5M possible but rare) is lower than some competitors who regularly finance to $5-7M.

9. Slower Than Speed Leaders

At 28-30 days, RCN isn't the fastest option. Speed-focused investors should look at Kiavi or others who close in 15-20 days.

RCN Capital vs. Competitors

vs. Kiavi

Speed: Kiavi faster (15-20 days vs. 28-30 days)
Rates: Similar for qualified borrowers
Experience: Kiavi no requirement; RCN requires 1+ transaction
Verdict: Kiavi for first-timers and speed; RCN for relationship pricing

vs. Lima One

Rates: Lima One typically 0.25% lower for strong profiles
Experience: Lima One no requirement; RCN requires 1+ transaction
Products: Both offer full suite; similar breadth
Verdict: Lima One for first rentals; RCN for active flippers going buy-and-hold

vs. Visio

Rates: Visio 0.25-0.50% lower for strong borrowers
Experience: Visio requires rental experience; RCN accepts any transaction
Verdict: Visio for experienced rental investors; RCN for flippers transitioning

vs. New Silver

Flexibility: New Silver more flexible (lower minimums)
Rates: RCN 0.25-0.50% lower
Experience: New Silver no requirement; RCN requires 1+ deal
Verdict: RCN for experienced investors; New Silver for first-timers

vs. Easy Street Capital

Rates: RCN 0.50-1.00% lower
Credit/DSCR Minimums: Easy Street more flexible
Experience: Easy Street no requirement; RCN requires 1+ deal
Verdict: RCN for 660+ credit with experience; Easy Street for challenged credit or first deals

Who Should Choose RCN Capital?

Ideal Borrowers

Active Flippers Transitioning to Rentals: RCN's acceptance of flip experience and bridge loan expertise makes them perfect for this transition.

Portfolio Builders Using Multiple Products: Investors who do some flips and some buy-and-holds benefit from RCN's product variety and relationship pricing.

Repeat Borrowers: After your 3rd-5th loan, RCN's relationship discounts make them very competitive. They reward loyalty.

Experienced Investors (5+ deals): The experience-based rate discounts favor active, seasoned investors.

Borrowers with Solid Profiles: 680+ credit, 1.1+ DSCR, documented experience—RCN offers good terms for this profile.

Investors Valuing Consistency: Working with one lender across multiple deal types reduces complexity and builds institutional knowledge.

Who Should Look Elsewhere

True First-Time Investors: With no previous real estate transactions, RCN won't work. Try Kiavi, New Silver, or Lima One.

Premium Borrowers (740+ credit, 1.25+ DSCR): You can get better rates at Visio or Lima One.

Short-Term Rental Investors: RCN doesn't accept STR income. Look at Visio or Lima One who do (with documentation).

Speed-Critical Buyers: If you need sub-20-day closings, faster lenders exist.

Investors in Excluded States: Nevada, Oregon, Alaska, Hawaii, and others require different lenders.

Value-Add Property Buyers: The strict condition requirements mean distressed properties need bridge loans first.

Tips for Success with RCN

1. Leverage Multiple Products

If you're doing flips and rentals, use RCN for both. The relationship benefits compound quickly.

2. Document Experience Clearly

Provide clear proof of your real estate transactions upfront—closing statements, deeds, tax returns with Schedule E. Don't make underwriting hunt for it.

3. Build the Relationship

After your first loan, stay in touch. Subsequent loans get better pricing and faster processing.

4. Optimize Your Profile

If you're at 675 credit, taking time to reach 680+ saves significant money. Same with pushing DSCR from 1.08 to 1.10.

5. Negotiate on Repeat Business

After 3-4 loans, ask for fee reductions beyond the standard relationship discounts. RCN values repeat customers.

6. Choose the Right Loan Term

If holding 5-7 years, the 7/1 ARM saves money with minimal risk. For 10+ year holds, the 30-year fixed provides certainty.

7. Consider Prepayment Penalty Trade-Off

The 3-year penalty is reasonable. Unless you're certain you'll sell/refinance within 3 years, take the lower rate with penalty.

8. Bundle Multiple Properties

If acquiring several properties, ask about portfolio pricing and bulk discounts.

Real-World Case Studies

Case Study 1: Flipper Transitioning to Rental

• Profile: 700 credit, 3 previous flips, purchasing first rental
• Property: Single-family, $280K purchase, $2,200 rent, DSCR 1.12
• Loan: 80% LTV, 30-year fixed at 8.25%, 2 points origination
• Outcome: Approved based on flip experience. Rate is mid-tier but acceptable. Used RCN for previous flip loans, so relationship was established. Plans to use RCN for future rentals to earn relationship discounts.

Case Study 2: Active Investor Building Portfolio

• Profile: 730 credit, 8 previous transactions (mix of flips and rentals), purchasing 5th current rental
• Property: Duplex, $420K purchase, $3,400 rent, DSCR 1.18
• Loan: 75% LTV, 30-year fixed at 7.75%, 1.5 points origination
• Outcome: Excellent rate due to experience (-0.25%) and relationship pricing (-0.125%). This is RCN's sweet spot—active, repeat investor getting premium pricing.

Case Study 3: First DSCR Loan

• Profile: 690 credit, 1 previous flip (using hard money), first DSCR loan
• Property: Single-family, $240K purchase, $1,950 rent, DSCR 1.08
• Loan: 75% LTV, 30-year fixed at 8.875%, 2.5 points origination
• Outcome: Marginal approval due to modest credit and DSCR. Rate reflects limited experience with RCN (+0.25%) and modest DSCR (+0.50%). Should see better terms on loan #2.

The Verdict

Rating: 3.9/5

RCN Capital is a solid, professional DSCR lender that shines for active investors who do multiple deals and value relationship building. The combination of competitive products, relationship pricing, and experience serving real estate investors makes RCN a strong choice for the right borrower.

However, RCN isn't the cheapest option for premium borrowers or the most flexible for challenged borrowers. They occupy the middle ground: good service, reasonable pricing, and long-term relationship benefits.

Choose RCN when:

• You have real estate transaction experience (flip or rental)
• You're doing multiple deals and value relationship pricing
• You use both bridge loans and DSCR rentals
• Your profile is solid (680+ credit, 1.1+ DSCR) but not premium
• You value consistency and working with one lender

Look elsewhere when:

• You're a first-time investor with no previous transactions
• You have 740+ credit and 1.25+ DSCR (get better rates at Visio/Lima One)
• You need to finance short-term rentals
• You're in an excluded state
• You need sub-20-day closings

Bottom Line

RCN Capital is best understood as a relationship lender for active investors. Your first loan might not blow you away with pricing, but by loan #3-5, you're getting competitive rates, lower fees, and streamlined processing.

For investors who view real estate as an ongoing business rather than one-off purchases, RCN's loyalty rewards and product diversity create genuine value over time. The combination of flip/bridge expertise with rental financing makes them particularly valuable for investors who transition between strategies.

If you're building a portfolio and doing multiple deals per year, RCN deserves serious consideration. The relationship you build will pay dividends across numerous transactions. Just understand that they reward loyalty and experience—not the best choice for your very first deal, but potentially an excellent partner for deals 2 through 20.