DSCR Loans: A Complete Guide for Real Estate Investors
A DSCR loan (Debt Service Coverage Ratio loan) allows real estate investors to qualify for a mortgage based on the rental income of the property rather than personal income. Lenders calculate DSCR by dividing gross rental income by the proposed mortgage payment, including principal, interest, taxes, insurance, and association dues. These loans are commonly used for long-term rentals, short-term rentals, and portfolio expansion, and are considered a type of Non-QM investor financing.
