A DSCR loan is designed primarily for real estate investors.

Instead of focusing heavily on the borrower’s personal income, the lender looks at the property’s rental income.

DSCR stands for Debt Service Coverage Ratio.

In simple terms:

Does the property’s rent support the housing payment?

These loans can be useful for:

• Rental properties
• Investors with multiple properties
• Self-employed borrowers
• Buyers who do not want to document traditional income

Rates and down payments are usually different from traditional mortgages.

The lender may also require reserves and review the property’s expected rent.

For the right investor, DSCR financing can make it easier to continue buying properties without relying entirely on tax-return income.

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