logo
InHouse Lending

DSCR Loans

DSCR LOANS

What is a DSCR Loan?

A DSCR residential mortgage loan—short for Debt Service Coverage Ratio loan—is a type of non-QM (non-qualified mortgage) designed primarily for real estate investors. Instead of focusing on your personal income, this loan looks at the income generated by the property itself to determine if you qualify. A DSCR loan measures whether a property’s rental income can cover its mortgage payments. The key formula is:

DSCR = Gross Monthly Rental Income ÷ Monthly Mortgage Payment (PITIA)

(PITIA = Principal, Interest, Taxes, Insurance, and Association dues)
  • A DSCR of 1.0 means the property breaks even.
  • A DSCR above 1.0 means the property generates more income than it costs to own—ideal for lenders.
style

Powered by
►
Necessary cookies enable essential site features like secure log-ins and consent preference adjustments. They do not store personal data.
None
►
Functional cookies support features like content sharing on social media, collecting feedback, and enabling third-party tools.
None
►
Analytical cookies track visitor interactions, providing insights on metrics like visitor count, bounce rate, and traffic sources.
None
►
Advertisement cookies deliver personalized ads based on your previous visits and analyze the effectiveness of ad campaigns.
None
Powered by