Debt Service Coverage Ratio (DSCR) loans are built specifically for real estate investors. We look at the rental income the property generates—not your personal W2s, tax returns, or debt-to-income ratio.
If the rent covers the mortgage, you're in the conversation. Scale your portfolio without the traditional underwriting headaches.
A Debt Service Coverage Ratio (DSCR) loan is a type of non-QM (non-qualified mortgage) loan specifically designed for real estate investors. Instead of using your personal income, tax returns, or pay stubs to qualify, lenders look at the cash flow of the investment property itself.
The DSCR is calculated by dividing the property's gross monthly rent by its monthly mortgage payment (Principal, Interest, Taxes, Insurance, and HOA if applicable). A ratio of 1.0 means the property generates exactly enough income to cover its debt. Most lenders prefer a ratio of 1.0 to 1.25, though options exist for ratios below 1.0.
While requirements vary by lender, a score of 680+ typically unlocks the best rates and highest LTVs. Some programs allow scores as low as 620 with higher down payments.
Expect a maximum Loan-to-Value (LTV) of 80% for purchases and rate/term refinances, and up to 75% for cash-out refinances.
Eligible properties include single-family homes, 2-4 unit multi-family properties, warrantable and non-warrantable condos. Short-term rentals (Airbnb/VRBO) are often accepted.
Lenders typically require 3 to 6 months of PITIA (Principal, Interest, Taxes, Insurance, Association dues) in liquid reserves.
🔒 No hard credit pull to start. I'll review your numbers and reply within 24 hours.