Rental & DSCR Loans
How it works
Instead of reviewing your tax returns, the lender compares the property's rent to its monthly debt costs (principal, interest, taxes, insurance and dues). That ratio is the DSCR. A higher ratio means more cushion and usually better terms.
Who it's best for
- Investors buying or refinancing rentals
- Self-employed borrowers with complex tax returns
- Growing portfolios beyond conventional loan limits
What lenders look at
- DSCR — commonly 1.0 to 1.25 or higher
- Credit score
- Cash reserves
- Property condition and market rent