16h • General discussion
Can I buy an Assisted Living with a DSCR loan? ✅ Yes—but with a catch!
Quick recap:
DSCR loans qualify based on the property’s rental income + your FICO (and sometimes your experience).
Here’s the tricky part…
Most DSCR lenders finance 1–8 unit rentals. Assisted living and sober living properties are usually classified as “mixed use” → commercial.
👉 Good news: we work with lenders who DO allow DSCR loans on commercial properties.
But here’s the catch…
Lenders only look at the real estate value (the property).
They won’t include the business value in their appraisal.
Example:
One of our appraisals came in at $400K with business included.
The lender adjusted it down to $360K for property only.
That’s a $40K difference—and it matters.
Key takeaway:
DSCR = asset only (the property).
SBA = property + business.
If you’re exploring Assisted Living or Sober Living with DSCR financing, know the difference before you get surprised at closing.
Have DSCR questions? I’m here to help!
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Can I buy an Assisted Living with a DSCR loan? ✅ Yes—but with a catch!
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