HomeFAQWhat is a DSCR loan and how does it work?
Investment & DSCR

What is a DSCR loan and how does it work?

Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

A DSCR loan qualifies an investment property on its own rental cash flow instead of your personal income. DSCR stands for debt service coverage ratio — the property's rent divided by its full monthly payment.

If the rent covers the payment (a ratio of 1.0 or higher), the property qualifies without tax returns or W-2s. It's the go-to tool for Florida investors and LLCs scaling a rental portfolio. We typically need 20% to 25% down.

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