What is a DSCR loan?

A DSCR loan, short for debt service coverage ratio loan, is a mortgage designed for rental property investors. Instead of reviewing your personal earnings, the lender looks at whether the property's rental income can reasonably cover its monthly payment, including taxes, insurance, and any association dues. Because qualification rests on the property rather than the borrower's pay history, these loans typically suit self-employed investors, buyers with complex finances, and anyone scaling a portfolio. They are business-purpose loans secured by non-owner-occupied property, so they are not intended for a home you plan to live in. Terms, leverage, and eligibility depend on the program and the property's cash flow. You can explore how the program works on our DSCR loan overview page.