What is a DSCR Loan?
A Debt Service Coverage Ratio (DSCR) loan is designed for real estate investors. Instead of qualifying based on your personal income (W-2s or tax returns), the lender primarily looks at whether the property’s rental income is enough to cover the monthly mortgage payment.
Who is a DSCR loan for?
- Down payment requirements are generally higher than owner-occupied loans.
- Interest rates are typically higher than conventional primary residence loans.
- Property condition and rental income are important.
- Reserve requirements may apply. Depending on the loan program, you may need to show enough savings or other eligible assets to cover several months of mortgage payments after closing.
Ready to Apply?
If you’re considering purchasing or refinancing an investment property, a DSCR loan may allow you to qualify based on the property’s rental income instead of your personal income. Every investment property and investor has unique goals, and I’m here to help you determine whether a DSCR loan is the right fit for your situation.
When you’re ready, you can complete a secure online application by clicking the button below. I’ll review your information and help you explore the financing options that best fit your investment goals.