Debt Service Coverage Ratio

DSCR loans use rental income to qualify for investment property.  

DSCR Loans allows real estate investors to secure financing based on the rental income of a property rather than their personal income.  

DSCR loans are designed for real estate investors and can only be used to purchase income-generating properties and can't be used to buy a primary home.  

The DSCR loan is based on: 

 The cash flow of a rental property and the loan payment.  

Tax returns or personal documents are not needed which makes it easier to qualify for than traditional mortgages.

A DSCR loan covers all types of rental properties.  You can build your rental portfolio much faster.

The debt service coverage ratio is measured by taking a properties annual gross rental income rental income against its annual mortgage debt, including principal, interest, taxes, and insurance.  

Lenders use DSCR to analyze how much of a loan can be supported by the income coming from the property and to determine how much income coverage there will be at a specific loan amount.