What is it?
A DSCR loan stands for Debt Service Coverage Ratio. It is a loan for investment properties. Instead of looking at your personal income, the lender looks at how much rent the property generates. If the rent covers the loan payment, you are in good shape.
Good fit when...
- Real estate investors buying a rental property
- People who want to grow a portfolio without being limited by their personal income
- Self-employed investors whose tax returns do not reflect their full financial picture
- Buyers of single-family rentals, small multifamily, or short-term rentals
- Properties where the rent income covers the monthly payment
Probably not the right fit if...
- Buying a home you plan to live in (this is for investment properties only)
- Properties with low or no rental income
- People looking for the lowest possible rate (DSCR rates are higher than conventional)
- Buyers who cannot put down at least 20–25%
Not sure if this is the right loan for you?
Take the loan finder quiz or book a free call. I will look at your full picture and tell you exactly what makes sense.