DSCR Loans
DSCR stands for debt-service coverage ratio. These investment-property loans focus on rental income in relation to the property’s debt payments. I’ll help you understand how a lender may evaluate your rental property and what else is required.
Reviewing a Rental Property
Explain the Rental Plan
Share the location, property type and whether you’re buying or refinancing. Tell me whether the property is leased, vacant or intended for short-term rentals.
Look Beyond the Rent
We’ll discuss rental income, financing costs, taxes, insurance and other property expenses. How the lender calculates the ratio and which income it accepts depend on the program.
Review Terms and Eligibility
Ask about down payment or equity, credit, reserves, fees and any prepayment penalty. A rental-income approach does not eliminate underwriting or guarantee eligibility.
Common Questions
Visit the Learning GuideCan I Use a DSCR Loan for My Own Home?
The DSCR options discussed here concern investment properties, not a home you intend to occupy. For your own residence, start with the Home Loans page.
Does Rental Income Replace All Other Requirements?
No. Lenders can still review credit, equity, reserves, the property and ownership structure. Documentation and qualifying ratios vary by program.
Are Short-Term Rentals Eligible?
Eligibility and how rental income is assessed depend on the lender, property and location. Tell me your intended use so we can ask the right questions before you make plans.
Have a Rental Property in Mind?
Call me or send me a note. We’ll start with what matters to you.