What is a DSCR loan?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A DSCR loan qualifies an investment property on its rental cash flow rather than your personal income. DSCR — debt service coverage ratio — compares the property's rent to its monthly payment.
No tax returns or W-2s are required, which makes it the favorite of Florida investors and LLCs growing a portfolio. Expect 20% to 25% down. We'll calculate the property's DSCR before you make an offer.
The investor's loan
A DSCR loan is an investment property mortgage that qualifies on the property's rental income, not your personal income. DSCR means debt service coverage ratio, the rent compared to the loan payment.
There are no pay stubs or tax returns to submit. The property's cash flow does the qualifying.
Who it fits
DSCR loans suit real estate investors, the self-employed, and anyone wanting to grow a portfolio without personal income limits. As long as the rent covers the payment, you can keep buying.
They work great for Florida long-term and vacation rentals. Reach out and we will run a DSCR quote on your target property.