What Is A DSCR Home Loan? A Guide for Real Estate Investors

A DSCR home loan, or Debt Service Coverage Ratio loan, is a type of real estate investment loan that qualifies borrowers based on the property’s income potential rather than their personal income. This makes it an ideal option for real estate investors, self-employed borrowers, or anyone building a rental property portfolio.

How a DSCR Loan Works

The Debt Service Coverage Ratio (DSCR) measures a property’s ability to cover its own debt payments. Lenders calculate it by dividing the property’s net operating income by its total loan payments.

Unlike traditional loans, no personal income verification or tax returns are required. Instead, lenders focus on the cash flow generated by the property.

Is a DSCR Loan Right for You?

If you’re an investor seeking to expand your real estate portfolio, a DSCR loan can help you qualify based on the property’s performance - not your pay stubs. It’s a smart way to leverage income-producing properties and grow your long-term wealth. Contact us for more key benefits of DSCR Loans.