DSCR Mortgage
Is a DSCR loan right for you?
DSCR (Debt Service Coverage Ratio) loans are specialized mortgage products intended to help real estate investors purchase or refinance rental properties. These loans use the property’s projected cash flow to qualify rather than your personal income, offering incredible flexibility. Are you a real estate investor looking to scale your portfolio without the hassle of traditional income verification? You may be eligible for a DSCR loan!
Benefits of a DSCR loan
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No personal income required: Qualify based entirely on the property’s rental income rather than your W-2s, tax returns, or employment history.
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Unlimited potential: There is typically no limit to the number of properties you can finance, allowing you to grow your investments faster.
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Flexible entities: Protect your personal assets by closing the loan under an LLC or corporate entity.
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Fast processing: Skip the complicated personal financial underwriting for a smoother, more streamlined approval process.
DSCR loan eligibility requirements
- Adequate property cash flow (rental income must typically meet or exceed the mortgage payment)
- Satisfactory credit score
- Sufficient down payment (usually 20% or more)
- Purchased property must be an investment property (non-owner occupied)
Check out what your investor ratio is by using our DSCR Investor Mortgage Calculator...
Our mortgage calculators are for demonstration purposes only and may not reflect actual numbers for your specific mortgage. Contact us and we will walk you through the best possible mortgage scenario for your specific needs!
The DSCR for this loan is
Monthly Payments
Principal & Interest (P&I)
$
Taxes & HOA
$
Homeowners Insurance
$
Debt Service Coverage Ratio
(Rental Income / Mortgage Payment)
Rental Income
$3,000
Monthly Mortgage
$3,000
DSCR
0.90
Estimated Taxes & Insurance
Property taxes are generally estimated to be 1.2% of the home's value, but may vary based on your location. Annual homeowners insurance is roughly 0.35% of the home's value but can change based on insurer. Your loan specialist can help you determine property tax and insurance rates in your area.
Estimated Payment
$ /mo
Loan amount
$
Down payment
$
Interest rate
Loan term
Property tax
Homeowner's insurance
$
HOA dues
$
Payment Breakdown
Amortization
Principal vs. Interest
Amortization Schedule Breakdown
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan.
Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
- Principal payments: $$240,000 (the amount borrowed)
- Interest payments: $$297,554 (the cost of borrowing)
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