DSCR Mortgage Loans are designed for real estate investors and property owners who rely on rental income to qualify for financing. Instead of traditional income verification, lenders evaluate the property’s income relative to the mortgage payment, making it ideal for those with strong cash-flowing investment properties or multiple rental units.
Check out what your ratio is by using our DSCR 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)
What is a DSCR Loan?
A Debt-Service Coverage Ratio (DSCR)Â loan is based upon cash flow from rental income. Approval for the 30-Year Rental Loan will occur if there is enough cash flow from the rental income received on a particular property to cover the outstanding monthly debt on the property.
The primary qualification for a DSCR loan is the cash flow of the subject property (income divided by expenses). Loan qualification is NOT based on pay stubs, tax returns, or personal income
Benefits of this loan program
- Qualification is based on rental income rather than personal income, simplifying approval for investors.
- Supports multiple property types, including single-family, multi-family, and mixed-use properties.
- Flexible underwriting allows investors to expand their portfolios without personal income limitations.
- Enables faster acquisitions and refinancing of income-producing properties.
General eligibility requirements
- DSCR typically must meet or exceed 1.0–1.25 (varies by lender).
- Minimum credit score (often 620+), depending on lender and property type.
- Verification of property income through leases, rent rolls, or tax returns.
- Down payment and reserves vary by lender and property type.
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