The Problem
Most DSCR lenders have minimum loan amounts of $75,000 to $100,000 or higher. Many also exclude Section 8 rental properties outright. For investors in affordable Midwest and Southeast markets holding Section 8 rentals worth $80,000–$150,000, this creates a wall: real equity, real cash flow, and no lender willing to touch it.
Our Minimums
How Section 8 Income Qualifies
Section 8 voucher payments (Housing Choice Voucher / HCV) qualify the same as any other rental income in our DSCR calculation. We divide the Section 8 payment by the new loan's monthly PITIA. If the ratio is 0.75 or above, the loan qualifies. There is no distinction between Section 8 and market-rate income: a dollar of voucher income is the same as a dollar of private pay income.
In fact, Section 8 income has characteristics that make it arguably more attractive for DSCR qualification: government-backed payments that arrive on the 1st of every month, with minimal risk of non-payment. We recognize this and fund accordingly.
Why Most Lenders Avoid Small Balance Loans
The economics are straightforward: originating a $60,000 loan costs nearly the same in labor, time, and compliance overhead as a $300,000 loan, but generates a fraction of the revenue. Large lenders with significant operational overhead can't make the unit economics work at small loan amounts. We have built our operation to fund small balance loans profitably and efficiently.
Small Balance? Section 8?
We fund from $50,000. Submit your deal: no credit pull.
Submit Deal Summary →Who This Is For
- Section 8 landlords in affordable markets with significant equity and no refinance options
- Midwest investors holding properties in the $80,000–$150,000 value range
- Portfolio investors with a mix of property values: including smaller assets that most lenders decline
- Anyone who has been told the lender's minimum loan amount is too high for their property
The Bottom Line
Small balance and Section 8 DSCR refinances are available: you just have to find a lender who funds them. Our minimum loan is $50,000 on properties valued at $75,000 or more. Section 8 income counts. No income docs. 660+ FICO. If you've been declined for loan amount or property type reasons, submit your deal and let us assess it directly.