Frequently asked questions.

A DSCR (Debt Service Coverage Ratio) loan is a type of investment property financing that's evaluated primarily on the property's rental income relative to its debt obligations, rather than the borrower's personal income or employment history. It's commonly used by real estate investors purchasing or refinancing rental property.

DSCR is generally calculated as the property's monthly rental income divided by its applicable monthly debt obligation, which may include principal, interest, taxes, insurance, and HOA dues depending on the lender's methodology. A DSCR above 1.0x generally means the property's income covers its debt obligation; the exact calculation and any minimums vary by lender.

Many DSCR lenders will consider either current lease income or estimated market rent (often supported by an appraiser's rent schedule), depending on the property and scenario. Availability and requirements vary by lender.

DSCR financing is frequently used by investors who hold property in an LLC or other business entity. Whether entity ownership is available — and any related requirements — depends on the specific lender and loan program.

Some lenders will consider short-term or vacation rental income for DSCR qualification, often using projected income data specific to short-term rental markets. Availability, documentation, and calculation methods vary by lender.

No. DSCR loans are a form of non-QM (non-qualified mortgage) investment property financing, generally used for non-owner-occupied properties. They're structured differently than owner-occupied conventional mortgages, which qualify primarily on personal income and debt-to-income ratio.

Credit requirements vary by lender and loan scenario. During our qualification process we ask for an approximate credit range so we can identify financing structures that are likely to fit — we do not perform a credit pull as part of that initial conversation.

Timelines vary based on the property, documentation, and lender, and we don't guarantee a specific closing date. Investors who are already under contract or have their documentation ready generally move through the process faster — let us know your timeline and we'll work toward it.