DSCR Loans

DSCR loans are designed for real estate investors who want to qualify based on property cash flow rather than personal income. Instead of focusing on tax returns, pay stubs, or debt to income ratios, this program looks at whether the property can support its own mortgage payment.

The key metric is the Debt Service Coverage Ratio, which compares the property’s rental income to its monthly housing expense. If the numbers make sense, the loan may be approved based on the asset itself rather than the borrower’s personal finances.

With a DSCR loan, investors may be able to:

• Qualify using rental income instead of personal income or tax returns
• Finance single family, multifamily, or mixed use investment properties
• Use long term or short term rental income, depending on program guidelines
• Purchase or refinance properties based on cash flow performance
• Expand a real estate portfolio with simplified, asset focused underwriting

There are important considerations with DSCR loans. Interest rates are typically higher than owner occupied loans, and required down payments are often larger. Cash flow calculations vary by lender, and some programs require the property to break even or exceed a specific DSCR threshold. Expenses, vacancy assumptions, and market rents all play a role and can affect approval.

DSCR loans work best for investors who prioritize scalability, flexibility, and speed over the lowest possible rate. When used strategically, they can be a powerful tool for building or restructuring an investment portfolio without being limited by personal income documentation.

If you are evaluating whether a property’s numbers support a DSCR loan, understanding the math upfront can save time and prevent costly surprises.

Mortgage loans are not originated on this site. All applications are processed through United Mortgage Corp (NMLS 1330). Christopher Crespo NMLS 2040756.