DSCR Loans

A DSCR loan is a mortgage designed for real estate investors, where qualification is based on the income generated by the property rather than personal income.

 This type of loan may be a good fit if you are purchasing or refinancing rental or investment properties.

 DSCR loans are offered by private lenders and are not backed by government agencies.

 These loans can have fixed or adjustable rates and are structured around the property’s cash flow.

 Qualification is based on the debt service coverage ratio (DSCR), which measures whether rental income is sufficient to cover the loan payment.

 Interest rates for DSCR loans are typically:

 Higher than conventional loans

 Based on property performance and investor profile

 To apply, borrowers must provide property income documentation, lease agreements, and basic financial information.