Connecticut DSCR Loans 2026: 2,493 Loans, 103 Lenders, Rates

From 6,028 investor loans to 2,493 DSCR-type loans

The federal file does not label DSCR loans, so the first job is to say what we counted. Every step below is a filter on the raw 2025 Connecticut file of originated and denied loans (96,253 rows, all occupancies, downloaded October 30, 2026), and each count is in the data file.

How Connecticut's 2025 investor loans narrow to the DSCR-type group (federal HMDA data, our arithmetic)

Median note rates differ by group, and the DSCR-type rate is above the income-qualified loans and far below the short-term ones.

Median note rate by loan group, Connecticut investor loans, 2025 (our arithmetic)

The premium of the DSCR-type median over business-purpose loans that did report a debt-to-income ratio is 0.325 points (7.375% against 7.05%); it cannot be read as the price of the ratio test, because the groups differ in lender and loan size. The state median equals the nation's 7.375% on the same definition (our national DSCR lender ranking). Connecticut's 2,493 loans are a small slice of that market, and the state has 103 active DSCR-type lenders.

One reconciliation. Our Connecticut hard money page counts 2,440 DSCR-type loans; this page counts 2,493. The difference is 53 loans from Emporium TPO, which reports its 30- and 40-year loans with a term of 30 and 40, years entered in a field that counts months. We follow the method of our Tennessee and New Jersey pages and count them as 360- and 480-month loans; a plain 360-month filter would drop them. Our DSCR denial page already uses 2,493 for Connecticut.

What Connecticut's own data shows: the loan is on a two- or three-family

In most states a DSCR loan is a loan on a single-family rental. In Connecticut it is about even. 1,270 of the 2,493 loans (50.9%) were on two- to four-unit buildings: 585 two-families, 548 three-families and 137 four-families, against 1,223 one-unit properties. That is above New York (47.0%), New Jersey (39.8%) and Tennessee (11.8%) on our pages (same definition), and it is not just a feature of the DSCR product: 2-4 unit buildings were 41.4% of all conventional investor loans, but 53.8% of them were DSCR-type, against 36.6% of one-unit investor loans (our arithmetic).

DSCR-type loans by number of units, Connecticut, 2025

The median rate is 7.375% for every unit count, so the building does not change the price; it changes the amount. The median loan climbs from $255,000 on one unit to $405,000 on four, but the loan per unit falls, and that is what a DSCR lender is testing.

Median loan per unit and the rent a 1.25 ratio would need, at 7.375% for 30 years (our arithmetic)

On the median three-family, principal and interest of $2,382.83 needs $2,978.54 of monthly rent for a 1.25 ratio, or $992.85 per unit; the same ratio on the median one-unit loan needs $2,201.53 from a single tenant. The 1.25 ratio is an illustration, lenders set their own minimums, and real ratios also count taxes and insurance, so these are floors, not a lender test. Our DSCR requirements page lists the minimums that lenders publish, and our DSCR calculator takes your own rent and taxes.

Who writes the multi-family loans. The share on 2-4 unit buildings varies by lender: Champions Funding 66.8%, Loan Funder 59.9%, Hometown Equity 57.9%, United Wholesale Mortgage 46.4%, BPL Mortgage 40.7%, Velocity Commercial Capital 32.1%, and none of RCN Capital's 197 (all one-unit). Ice Lender Holdings is the most multi-family lender of the 25 largest, with 83.0%. A borrower buying a triple-decker is therefore choosing among a different set of lenders than one buying a ranch.

Where in Connecticut: nine planning regions

The 2025 HMDA file codes Connecticut loans by planning region (09110 to 09190), not by county. We labelled the codes with the Office of Management and Budget's July 2023 delineation file, which lists the nine planning regions as county equivalents and assigns each to a metropolitan or micropolitan area. The file gives no town, so a city like New Haven or Waterbury can only be read through its region.

DSCR-type loans by planning region, 2025 (HMDA, our arithmetic)

Four patterns stand out.

• Naugatuck Valley is the multi-family DSCR region. It is the Waterbury-Shelton metro: 400 loans, 66.2% of them on 2-4 unit buildings, and 54.1% of its investor loans were DSCR-type, the highest of the nine regions. Champions Funding leads it with 43 loans.
• The western edge is a different market. The Western Connecticut planning region (in the Bridgeport-Stamford-Danbury metro) had 237 loans at a $455,000 median loan on a $715,000 median property, about 1.5 times the state's $305,000 loan, with only 35.4% on 2-4 unit buildings and the lowest entity share (16.9%). CrossCountry Mortgage is its largest lender (18).
• The big three regions are alike. Capitol (Hartford), South Central (New Haven) and Greater Bridgeport together had 1,284 of the 2,493 loans; their medians are 7.375%, 7.375% and 7.25%. Within the Hartford metro (563 loans, Capitol plus Lower Connecticut River Valley) the median loan is $285,000; in New Haven (457) $305,000; in Bridgeport-Stamford-Danbury (564) $420,000.
• 275 loans (11.0%) carry no region. 197 of them are RCN Capital's and 41 Investor Mortgage Finance's (the Visio Lending affiliate); the two report no county on any loan, which is why 89.5% of the no-region loans went to entities. The Northeastern Connecticut and Northwest Hills regions (28 and 52 loans) are too small for any rate comparison.

The ranking: who makes DSCR-type loans in Connecticut

The list is led by broker-fed non-bank lenders, but it is less concentrated than a first look suggests: the top 5 made 799 loans (32.0%), the top 10 1,238 (49.7%) and the top 20 1,802 (72.3%). 6 lenders made 100 or more, 43 made 10 or more, and 18 made exactly one (our arithmetic).

Top 20 Connecticut lenders by DSCR-type loans, 2025

What the list says:

• Wholesale versus direct is a clean split. Champions Funding, United Wholesale Mortgage, OCMBC, A&D Mortgage, HomeXpress, Velocity, AmWest Funding, Logan Finance, Arc Home, Deephaven and Emporium TPO took every one of their Connecticut loans through brokers; RCN Capital, Hometown Equity Mortgage and American Heritage Lending took none. Overall 1,620 loans (65.0%) were brokered, with the same 7.375% median either way.
• Loan size is similar at the top. The medians of the 20 largest lenders sit between $235,000 (Velocity) and $345,000 (Ice Lender Holdings), so the choice of lender is not a choice of loan size.
• The names that top an all-investor ranking are mostly not DSCR lenders. Ranked by every conventional investor loan, the leaders are RCN Capital, Loan Funder and Kiavi Funding, whose short-term loans fill the list; Total Mortgage Services (154 investor loans, 1 DSCR-type), Rocket Mortgage (129 and 1) and CMG Mortgage (107 and none) have large investor books but almost no loans without a debt-to-income ratio.

Top 12 Connecticut lenders by all conventional investor loans, 2025, with how many were DSCR-type and short-term

The platform lenders borrowers ask about

Kiavi Funding reported 41 DSCR-type loans in Connecticut (median $275,000, 7.125%) and 217 short-term ones, so about 84% of its Connecticut investor loans are the short-term product on our hard money page; see our Kiavi review for the lender itself. Investor Mortgage Finance, the Visio Lending affiliate, reported 41 DSCR-type loans at 7.575% and a $325,000 median (Visio review). LendingOne reported 13 DSCR-type loans at 7.14% and Velocity Commercial Capital 81 at 9.865%. Lima One Capital is in the 2025 filer list but reported no Connecticut loan of any kind in the file we downloaded (originated or denied), so the Connecticut count for that lender is zero here. RCN Capital (197 DSCR-type and 258 short-term, counting both of its filer identifiers) and Loan Funder (167 and 157) write both products (RCN review, Loan Funder review). These are only the loans HMDA shows, under the names the lenders filed.

Rates by lender: 6.875% to 9.865%

For the 22 lenders with at least 40 DSCR-type loans, the median note rate ranges nearly three points. This is a median of closed loans, not a quote; a lender whose median is low may have written its loans at lower leverage or for stronger borrowers, which the file does not show.

Median DSCR-type note rate for Connecticut lenders with 40 or more loans, 2025 (lowest to highest)

Twenty-one of the 22 are inside a 0.7-point band, 6.875% to 7.575%. Velocity Commercial Capital stands alone at 9.865%: 71 of its 81 loans are above 9%, and Velocity made 71 of the 105 DSCR-type loans above 9% in the state, with Champions Funding next at 10. Of the 43 loans above 10%, Velocity made 35. The payment gap is real money on the typical loan:

Monthly principal and interest on $305,000, 30-year fixed, at Connecticut DSCR-type rates (our arithmetic)

Going from the 25th percentile to the median costs $79.43 a month ($953.21 a year) on $305,000; going from the median to the 90th percentile costs another $184.80; and Velocity's median is $539.66 a month above the state median (our arithmetic). The overall range is wide: the lowest DSCR-type rate in the file is 5.50% and the highest 12.25% (one loan, from Citadel Servicing Corporation); 803 of the 2,491 loans with a rate (32.2%) were at 7% or less and 346 (13.9%) above 8%.

DSCR-type loans by loan size and by combined loan-to-value, 2025

Size matters little to the rate: the median is 7.375% in every band under $500,000. Leverage matters more: the median rises from 7.25% at 60% or less to 7.46% at over 75% to 80% and 7.91% above 80% (only 22 loans). By purpose, 1,056 loans (42.4%) were purchases, 1,042 (41.8%) cash-out refinances and 240 (9.6%) rate-and-term refinances. 194 loans (7.8%) carry an interest-only period and 47 a balloon; 2,466 have a 360-month term and 27 a 480-month term. Discount points are NA on every loan and so is the prepayment-penalty term.

Banks and credit unions: 14% of investor loans, 20 DSCR-type loans

Connecticut has 123 banks and credit unions (names containing Bank, Credit Union, Federal, Savings or N.A.) with at least one conventional investor loan in the file. They made 822 of the 5,704 (a 14.4% share) at a 6.75% median note rate, and 72.4% were for a business purpose. But only 20 of the 2,493 DSCR-type loans came from 8 of them (median 7.50%), because 25.3% of their investor loans have a term under 360 months and most business-purpose ones report a debt-to-income ratio (470 of 595; of the 125 that did not, 105 are under 360 months).

The eight banks with the most investor loans in Connecticut, 2025

Chelsea Groton Bank reported the most investor loans, 63, with a 243-month median term and 60.3% under 360 months, and no DSCR-type loan. Wells Fargo reported none for a business purpose. HMDA cannot tell you whether a bank underwrites on rent; it tells you only whether the ratio field was filled in. For a borrower the practical point is that a bank is a real alternative at a lower median rate (6.75% against 7.375%), but a shorter term can mean a refinance or renewal within a few years, and a lender that asks for your personal income is not running a DSCR test. See our DSCR versus conventional comparison.

Who got denied

The file also lists denied applications. Counting applications that ended in an origination or a denial and passed the same filter (business purpose, no debt-to-income ratio, term of 360 months or more), 760 of 3,253 were denied: 23.4% (our arithmetic). Withdrawn applications and files closed for incompleteness are in other categories that we did not count.

First denial reason reported on denied DSCR-type applications, Connecticut, 2025

Collateral, credit history and “other” lead; the debt-to-income ratio appears only 26 times because the group is defined by having no ratio reported. Lender-level denial rates in this file are unreliable for some lenders, because their denied applications carry terms that differ from their closed loans, so we do not rank lenders by denial rate. Compare states on our DSCR denial page.

What Connecticut's rules add for a DSCR borrower

HMDA tells you who lends and at what rate. Three sets of Connecticut statutes bear on a DSCR loan on a two- or three-family, and we read each on the General Assembly's website (cga.ct.gov, the “current” chapters 673, 668 and 98, October 30, 2026). The first two are covered at more length on our Connecticut hard money page, which also has the conveyance tax and the foreclosure rules; this page keeps to what a rental borrower needs. Each is a reading of public text, not legal advice.

The 12% ceiling and why a mortgage loan is outside it

Section 37-4 says nobody may “charge, demand, accept or make any agreement to receive therefor interest at a rate greater than twelve per cent per annum.” Section 37-9 then says that sections 37-4, 37-5 and 37-6 “shall not affect” a list of loans, and item (3) is “any bona fide mortgage of real property for a sum in excess of five thousand dollars.” On its face, a first-lien mortgage loan of the sizes in our file fits that exemption: the smallest DSCR-type loan is $55,000 and the median $305,000. One DSCR-type loan in the file carries a rate above 12% (12.25%, a $225,000 loan), and 43 are above 10%; we do not claim any loan is unlawful, and HMDA does not show whether a loan is a “bona fide” mortgage or the borrower's legal form. The chapter's own note tells readers to use the 2026 Supplement for acts of the 2025 sessions, which we did not open.

Does a DSCR lender need a Connecticut mortgage license?

Section 36a-486(a) provides that “No person shall engage in the business of making residential mortgage loans or act as a mortgage broker in this state unless such person has first obtained a license.” The definition decides who is covered. A “residential mortgage loan” in Sec. 36a-485(27) is a loan “primarily for personal, family or household use” secured by a mortgage on a dwelling or on land where one is to be built. A loan to an LLC to buy a rental is not primarily for that use on the text, and 33.7% of the DSCR-type loans in our file went to entities. The other 66.3% were to applicants reported with an age, that is individuals, who can also borrow for a business purpose; the business-purpose flag is the lender's own report of the loan's purpose. Section 36a-487(a)(1) exempts any federally insured bank or credit union, and (b)(1) exempts “Persons making five or fewer residential mortgage loans within any period of twelve consecutive months.” We found no Department of Banking guidance on investor loans and nothing here says a particular lender is or is not licensed: search the lender in the Nationwide Multistate Licensing System before you sign, and ask which Connecticut basis it relies on.

The rule most DSCR pages skip: a town can limit the rent

This is the Connecticut rule that touches the DSCR test itself. Section 7-148b(b) says that “any town, city or borough with a population of twenty-five thousand or more, as determined by the most recent decennial census” shall “adopt an ordinance that creates a fair rent commission,” and that smaller towns may. The commission hears complaints about “rental charges” and can examine a proposed increase. Section 7-148c lists what it considers in deciding whether a rental charge is “so excessive, with due regard to all the circumstances, as to be harsh and unconscionable”; item (7) is “the amount of taxes and overhead expenses, including debt service, thereof,” and (12) is “the amount and frequency of increases in rental charges.” Section 7-148d(a) says a commission that finds a rent excessive “may order that the rent be limited to such an amount as it determines to be fair and equitable,” and 7-148f sets a fine of $25 to $100 per offense for demanding more than a limiting order.

For a DSCR borrower this matters because the loan is sized on rent. The statute lists debt service as one of thirteen circumstances, not as a floor, and we found nothing in it that makes a high mortgage payment a defense. Our arithmetic from above shows what the assumption looks like: on the median three-family the 1.25 test on principal and interest alone needs $992.85 a month per unit, and a lender that underwrites market rent from an appraisal is not checking whether your town has a commission or has ever limited a rent. Which Connecticut towns have one is not in this file; ask the town clerk, and check the building's rent history before you assume an increase.

The statutes behind the section, quoted from the General Assembly's text

How we read the federal file

The Home Mortgage Disclosure Act file lists every loan a reporting lender originates and every application it denies, with its note rate, amount, loan-to-value, purpose, planning region and lender. We used the 2025 Connecticut file of originated and denied loans from the FFIEC HMDA Data Browser, downloaded October 30, 2026: 96,253 rows, all occupancies (74,717 originated and 21,536 denied). Of the 6,558 originated investment-property loans, 6,028 had 1-4 units; after removing reverse mortgages and open-end lines, 5,824 remained, and 5,704 were conventional first liens. Of those, 4,705 were made for a business purpose, 3,428 of them with no debt-to-income ratio reported (NA). The 2,493 DSCR-type loans are the 360-months-or-longer part of that group. The remaining no-DTI loans are short-term loans (831 at 36 months or less, median 10.49%) and loans with terms between 37 and 359 months (102). The loan term in HMDA is in months, so 360 means 30 years. Rates reported as NA (2 loans) are left out of the rate statistics. Percentiles use linear interpolation. We used the same definition and counting method as our New Jersey, New York and Tennessee pages (including the Emporium TPO treatment above), and the extract of the 2,493 loans and the counting scripts are saved with the data file.

Limits, so you can weigh the numbers:

• A proxy, not a census. HMDA does not mark DSCR loans. Other no-debt-to-income business loans fall into the group, such as bank-statement or asset-based loans, and DSCR loans reported with a ratio or a shorter term do not.
• Rates, not prices. Discount points, total loan costs and the prepayment-penalty term are NA on all 2,493 loans; the file has no credit score, rent or DSCR ratio.
• Entity is our reading. We count applicant age 8888 as an entity (841 loans, 33.7%); 1,652 reported an age. Reporting of guarantors varies by lender, and the median note rate was 7.375% for entities and 7.375% for natural persons.
• Denials are a rough measure. The 23.4% counts applications by the same filter, but a denied application has no closed loan to define it, and lenders fill in denied applications differently.
• Location gaps. 275 loans have no planning region, mostly RCN Capital's and Investor Mortgage Finance's. The planning regions are the OMB county equivalents; the file gives no town.
• Names as filed. Lenders are counted by legal-entity identifier. RCN Capital files under two identifiers with the same name; only one wrote DSCR-type loans, and the short-term count above adds both. Corporate groups can file under several names, and lenders below the reporting thresholds are missing.
• Bank identification is by name (Bank, Credit Union, Federal, Savings, N.A.), excluding names with “Mortgage”, so it is approximate.
• One year. This page uses 2025 only; we did not compare it with 2024.
• Rounded amounts. HMDA loan amounts are rounded in the public file, so medians land on round figures.
• Law was read from the legislature's site. The current chapter text; each chapter notes a 2026 Supplement for acts of the 2025 sessions that we did not open.

What a Connecticut investor can do with this

1. Decide whether you are buying a one-family or a multi-family, then compare lenders that do that. Half of the state's DSCR loans are on 2-4 unit buildings. Among the 25 largest lenders the highest multi-family shares were Ice Lender Holdings (83.0%), Constructive Loans (82.8%), FM Home Loans (71.4%), Logan Finance (67.6%) and Champions Funding (66.8%); RCN Capital wrote none.
2. Get three quotes from different channels. A broker-fed lender such as Champions Funding or United Wholesale Mortgage, a direct lender such as Hometown Equity or RCN Capital, and a platform. The median was 7.375% either way, so the lender, not the channel, is what moves the price.
3. Shop inside the 6.99% to 7.75% band. It holds the middle half of loans. Only 346 of 2,491 loans (13.9%) were above 8%, and one lender (Velocity) made 71 of the 105 above 9%, so a quote far above 8% is worth a second one.
4. Size the rent per unit, not per building. On the median three-family, a 1.25 ratio on principal and interest alone needs $992.85 per unit per month (our arithmetic); add taxes and insurance and ask how the lender counts a vacant unit.
5. Ask your town about a fair rent commission and for any order on the building before you assume a rent increase (Sec. 7-148b to 7-148d).
6. Ask who funds the loan and under what Connecticut basis. 65.0% of the loans came through brokers. Search the lender in NMLS and ask which license or exemption it relies on (Sec. 36a-486, 36a-487).
7. Consider a bank if your income documents well. The bank median for investor loans was 6.75% against 7.375% for DSCR-type, but with a shorter term at several banks; ask for amortization, any balloon date and renewal terms in writing. Our DSCR with an LLC page covers the entity side, and the short-term product is the other half of the Connecticut market.

What we could not verify

• Whether Connecticut's licensing sections apply to a particular business-purpose loan on an investment property: the definitions and exemptions were read, but no Department of Banking guidance was found.
• Which Connecticut towns have a fair rent commission, and whether any has limited the rent on a particular building: the statute requires one in towns of 25,000 or more, but we did not read the ordinances.
• The 2026 Supplement to chapters 673, 668 and 98: not opened. A 2025 act could have changed the text above.
• What a lender's DSCR test counts as rent, and its minimum ratio: HMDA has neither. See DSCR loan requirements.
• Property tax rates by town and the state conveyance tax: not read here; the conveyance tax is on our hard money page.
• National and neighboring-state figures in this page (the 7.375% national median and the 2-4 unit shares of 47.0%, 39.8% and 11.8%) are quoted from our own pages built on the same definition; we did not re-run those states.

FAQ

Related reads: our Connecticut hard money page reads the short-term half of the same file, New Jersey, New York and Tennessee use the same definition, and DSCR lenders ranked by loans reads the national file.

Loan-level data: FFIEC/CFPB HMDA Data Browser, originated and denied loans for Connecticut, 2025, downloaded October 30, 2026 (the request URL is in the data file; the counting scripts and the extract of the 2,493 loans are saved with our working files); lender names from the FFIEC 2025 filer list; planning region and metro names from the Office of Management and Budget's July 2023 CBSA delineation (List 1). Connecticut sources: Connecticut General Statutes Sec. 37-4 and 37-9 (chapter 673), Sec. 36a-485 to 36a-487 (chapter 668) and Sec. 7-148b to 7-148f (chapter 98), from the General Assembly website (cga.ct.gov, current chapters read October 30, 2026). All counts, percentiles, medians, shares and payment figures are our arithmetic. This is analysis of public documents, not investment, legal or tax advice, and not a loan offer.