DSCR Loans in Delaware

Investment property loans that qualify on rent.

In Delaware, a DSCR loan finances a rental on the strength of its rent instead of your tax returns. HUD puts the 2 bedroom Fair Market Rent for the Wilmington area (Philadelphia metro) at $1,860 a month (HUD User). Pillar Mortgage Group (NMLS 2700076) arranges DSCR loans in Delaware up to $5 million.

Facts checked November 1, 2026. Not a commitment to lend.

Facts checked November 1, 2026

Key Delaware facts for rental investors

Primary sources only. Use these to sanity check any Delaware rental before you write an offer.

Delaware factValueSource
Security instrumentMortgagedelcode.delaware.gov
ForeclosureMortgagedelcode.delaware.gov
Transfer and recording taxesRealty transfer tax30 Del. C. § 5402
Security deposit1 month's rent where the rental agreement is for 1 year or more25 Del. C. § 5514(a)(2)
Notice for unpaid rentWritten demand giving at least 7 days to pay before filing suit25 Del. C. § 5502(a)
LLC formation fee$110 Certificate of Formationcorpfiles.delaware.gov
Median listing price$484,998 in September 2026 ($485,450 in September 2025)Realtor.com via FRED
HUD 2 bedroom Fair Market Rent$1,860, The Wilmington area (Philadelphia metro)HUD User
The definition

How a DSCR loan works in Delaware

Lenders divide rent by principal, interest, taxes, insurance and HOA. Take the HUD 2 bedroom Fair Market Rent for the Wilmington area (Philadelphia metro), $1,860: that rent carries a $1,860 payment at 1.00, or $3,720 at 0.50.

Full walk through: how DSCR is calculated.

Where PMG is different

Why Delaware investors use PMG

The guidelines that set our Delaware DSCR loans apart.

  • First time buyers: allowed, no VOR
  • Cash out: no seasoning
  • Reserves: none under $1M, 75% LTV
  • Assets: no sourcing
  • Gift funds: 100%
  • ADUs: multiple
  • Foreign nationals: 70% / 60% LTV
  • DSCR: from 0.50
  • Interest only: 70% / 65% LTV

Loan amount

Up to $5M

Credit

660 and up

Down

20 to 25%

Vesting

LLC ok

Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend. Compare with typical DSCR programs.

Delaware rental market

Delaware rental numbers: rent and price

These public benchmarks show where Delaware rents and prices sit right now.

HUD Fair Market Rent, 2 bedroom

$1,860

The Wilmington area (Philadelphia metro) (FY2027)

HUD User

HUD Fair Market Rent, 2 bedroom

$1,629

The Dover metro (FY2027)

HUD User

Median listing price

$484,998

September 2026, down 0.1% from $485,450 in September 2025

Realtor.com via FRED

Quick math (computed from the figures above): On a Delaware home at the Delaware median of $484,998, 25% down comes to $121,250, leaving a $363,748 loan. A year of rent at the Fair Market Rent for the Wilmington area (Philadelphia metro) ($1,860) is $22,320, or 4.6% of that price. A year of rent at the Fair Market Rent for the Dover metro ($1,629) is $19,548, or 4.0% of that price.

Fair Market Rent is a HUD benchmark, not an appraisal.

Calculator

Check your Delaware DSCR in seconds

The rent field starts at the HUD 2 bedroom Fair Market Rent for the Wilmington area (Philadelphia metro). HUD also lists the Wilmington area (Philadelphia metro) at $1,860 and the Dover metro at $1,629. Swap in your lease or appraisal rent, then add your quoted rate. For a price reference, the median Delaware listing was $484,998 in September 2026.

Delaware DSCR Calculator

See how a rental's income stacks up against its full monthly payment. Your numbers stay in your browser.

Income
Example: HUD 2 bedroom Fair Market Rent for the Wilmington area (Philadelphia metro). Replace it with your rent.
Loan
Expenses
Leave blank if there is no HOA.

Your DSCR results

Enter rent, price and your quoted rate to see your DSCR.

Formula used

Loan amount (L) = Price × (100 minus Down %) ÷ 100

P&I (30 year fixed) = L × r × (1 + r)^360 ÷ ((1 + r)^360 minus 1), where r = annual rate ÷ 100 ÷ 12

P&I (40 year interest only) = L × r

PITIA = P&I + Tax ÷ 12 + Insurance ÷ 12 + HOA

DSCR = Monthly rent ÷ PITIA

Rent needed for a target DSCR = Target × PITIA

Talk through your numbers with us

Estimates only. Not a loan offer. Rates and terms vary by lender, property and borrower. Company NMLS #2700076. Example values are illustrations, not a quote.

The math

DSCR worked examples for Delaware

Hypothetical PITIA of $1,775 (P&I $1,400, taxes $250, insurance $125), real Delaware rents. Not a quote or a rate.

The Wilmington area (Philadelphia metro)

HUD FY2027 2 bedroom Fair Market Rent (source)
$1,860
Hypothetical PITIA
$1,775

1.05DSCR

$1,860 / $1,775 = 1.05: covers the full payment.

The Dover metro

HUD FY2027 2 bedroom Fair Market Rent (source)
$1,629
Hypothetical PITIA
$1,775

0.92DSCR

$1,629 / $1,775 = 0.92: fits programs down to 0.50.

Talk to us

Have a Delaware rental in mind? Run it with us.

A two minute form gets the property in front of our team. You get a straight answer on the ratio and the structure.

Investors from any state can buy in Delaware.

See If My Delaware Deal Qualifies

No commitment  ·  Under 2 minutes

Your information is never sold or shared. By submitting you authorize Pillar Mortgage Group LLC to contact you by phone, text, or email. Equal Housing Lender.

✓

Got it.

We will reach out shortly to run your numbers.

Top markets

Delaware metros and local rental rules

The largest Delaware rental markets, and what each city requires of short term rental hosts.

Wilmington

$1,860

HUD 2 bedroom Fair Market Rent, the Wilmington area (Philadelphia metro) (HUD)

Dover

$1,629

HUD 2 bedroom Fair Market Rent, the Dover metro (HUD)

Landlord and tenant law

Delaware landlord and tenant rules that affect your DSCR

A DSCR loan underwrites the rent, so the rules that govern collecting it matter. Here is what Delaware law says, with the statute for each.

TopicThe ruleCitation
Security deposit cap1 month's rent where the rental agreement is for 1 year or more25 Del. C. § 5514(a)(2)
Deposit return deadline20 days after expiration or termination of the rental agreement25 Del. C. § 5514(e)
Nonpayment noticeWritten demand giving at least 7 days to pay before filing suit25 Del. C. § 5502(a)
Month to month notice60 days' written notice, starting the first day of the month after actual notice. Rent increases also need 60 days' notice before the agreement expires.25 Del. C. §§ 5106(d), 5107(a)

Not legal advice.

Closing and foreclosure

Closing a rental in Delaware: deeds, foreclosure and taxes

Who closes your loan, which security instrument you sign and what the state charges to record it.

  • Security instrument: Mortgage. Foreclosure is judicial: the mortgagee sues out a writ of scire facias on the mortgage in the Superior Court of the county where the property sits, subject to §§ 5062A to 5062D. (delcode.delaware.gov)
  • Transfer taxes: Realty transfer tax: 3% state, or 2.5% state where the county or town has enacted the full 1.5% local tax (combined 4%). Split equally between buyer and seller. First time buyer reduction on the buyer's share up to $2,000. 30 Del. C. § 5402 (delcode.delaware.gov)
LLC and vesting

Closing a Delaware rental in an LLC

What it costs to form and keep an LLC in good standing with the Delaware Secretary of State.

Local angle

What makes Delaware different for rental investors

  • New Castle County and Wilmington sit inside the Philadelphia metro and draw renters who work in the corporate, banking and legal sectors.
  • Dover is the state capital and home to Dover Air Force Base, a steady source of military renters.
  • The University of Delaware in Newark creates concentrated student rental demand.
Before you offer

Delaware investor checklist

Run through these Delaware rules before you write an offer on a rental.

Step by step

Five steps to a Delaware DSCR loan

  1. Send the Delaware deal
  2. We run the DSCR
  3. We shop lenders
  4. Appraisal confirms rent
  5. Close in your name or LLC

Documents: contract, lease or rent schedule, bank statements, LLC papers, insurance quote. No tax returns. Details.

FAQ

Delaware DSCR loan questions

Straight answers for investors buying or refinancing rentals in Delaware.

PMG guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.

Book a free call

Does Pillar Mortgage Group offer DSCR loans in Delaware?

Yes. Purchases, rate and term and cash out refinances on Delaware rentals, up to $5 million, in your name or an LLC. That includes Wilmington, Dover, Newark and Middletown.

How is rent set on a Delaware DSCR loan?

The lease or the appraiser's market rent. As a benchmark, HUD puts the 2 bedroom Fair Market Rent for the Wilmington area (Philadelphia metro) at $1,860 a month.

How much security deposit can a Delaware landlord take?

1 month's rent where the rental agreement is for 1 year or more. (25 Del. C. § 5514(a)(2))

How does a Delaware landlord start the process for unpaid rent?

Written demand giving at least 7 days to pay before filing suit. (25 Del. C. § 5502(a))

How much notice ends a month to month lease in Delaware?

60 days' written notice, starting the first day of the month after actual notice. Rent increases also need 60 days' notice before the agreement expires. (25 Del. C. §§ 5106(d), 5107(a))

What security instrument does Delaware use?

Delaware closes on a mortgage. Mortgage. Foreclosure is judicial: the mortgagee sues out a writ of scire facias on the mortgage in the Superior Court of the county where the property sits, subject to §§ 5062A to 5062D.

What transfer taxes apply to a Delaware purchase?

Realty transfer tax: 3% state, or 2.5% state where the county or town has enacted the full 1.5% local tax (combined 4%). Split equally between buyer and seller. First time buyer reduction on the buyer's share up to $2,000. (30 Del. C. § 5402)

Can I close a Delaware DSCR loan in an LLC?

Yes, PMG DSCR loans can close in an LLC. $110 Certificate of Formation. $400 annual tax, due on or before June 1.
Nearby states

DSCR loans in nearby states

Investing across state lines? We lend DSCR in these neighbors of Delaware too.

Sources and review dates

Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.

  1. HUD FY2027 Fair Market Rent, Philadelphia, Camden, Wilmington, PA, NJ, DE, MD MSA: https://www.huduser.gov/datasets/fmr/fmr2027/summary?counties=1000399999&reporttype=county&states=10&year=2027&sa_override=1
  2. delcode.delaware.gov: https://delcode.delaware.gov/title10/c049/sc11/index.html
  3. 30 Del. C. ch. 54 subch. I: https://delcode.delaware.gov/title30/c054/sc01/index.html (checked 2026-11-01)
  4. 25 Del. C. ch. 55: https://delcode.delaware.gov/title25/c055/index.html (checked 2026-11-01)
  5. corpfiles.delaware.gov: https://corpfiles.delaware.gov/LLC_Forms/LLC%20Formation.pdf
  6. Realtor.com via FRED: https://fred.stlouisfed.org/series/MEDLISPRIDE
  7. HUD FY2027 Fair Market Rent, Dover, DE MSA: https://www.huduser.gov/datasets/fmr/fmr2027/summary?counties=1000199999&reporttype=county&states=10&year=2027&sa_override=1
  8. 25 Del. C. ch. 51 subch. I: https://delcode.delaware.gov/title25/c051/sc01/index.html (checked 2026-11-01)
  9. Delaware LLC tax: https://corp.delaware.gov/alt-entitytaxinstructions/ (checked 2026-11-01)
Delaware investors

Let the rent do the qualifying.

Send the Delaware property and rent. We run the ratio and lay out terms before you offer.

Run My Delaware DSCR Numbers

No commitment  ·  Under 2 minutes

Your information is never sold or shared. By submitting you authorize Pillar Mortgage Group LLC to contact you by phone, text, or email. Equal Housing Lender.

✓

Got it.

We will reach out shortly to run your numbers.

Pillar Mortgage Group, LLC is an Equal Housing Lender, doing business in accordance with the Fair Housing Act and Equal Credit Opportunity Act. Not a commitment to lend.
Company NMLS# 2700076  |  Arizona License MB-2009671  |  View NMLS Consumer Access