DSCR Investment Property Loans Explained

What is a DSCR Loan?

A DSCR loan is a type of Non-Qualified Mortgage (Non-QM) loan specifically designed for real estate investors.

The key difference from a conventional loan is the method of qualification:

Focus on Property Income: Lenders qualify the loan based on the property's Debt Service Coverage Ratio (DSCR), which is a measure of the rental income versus the debt payment.

No Personal Income Verification: Generally, DSCR loans do not require W-2s, pay stubs, or personal tax returns to qualify. This makes them ideal for investors who are self-employed, have complex tax situations (with many write-offs), or are rapidly expanding their portfolio.