A DSCR loan uses rental income only to qualify for a mortgage on an investment property
A residential DSCR (Debt Service Coverage Ratio) loan is a type of mortgage typically used for investment properties, where the approval and terms of the loan are based on the property’s income rather than the borrower’s personal income. The DSCR is a measure of a property's ability to generate enough income to cover its debt obligations. Here's a more detailed explanation:
Key Points of a Residential DSCR Loan:
Debt Service Coverage Ratio (DSCR):
The DSCR is calculated by dividing the property's net operating income (NOI) by its total debt service (e.g., mortgage payments, property taxes…
The skinny
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