DSCR - using the rental income only to qualify for an investment property
DSCR (Debt Service Coverage Ratio): DSCR is a financial ratio that measures a company's ability to meet its debt obligations. In the context of loans, it typically refers to the ratio of a property's net operating income to its debt obligations, including mortgage payments. A higher DSCR indicates a better ability to cover debt payments.
Non-Qualified Mortgage (Non-QM): Non-QM loans are mortgages that do not meet the standards set by government-sponsored enterprises like Fannie Mae and Freddie Mac. These loans are considered riskier and may have features that deviate from the traditional…
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