How DSCR Loans Work
A DSCR loan is built for real estate investors. DSCR stands for debt service coverage ratio. Instead of focusing on your personal income, these programs look at whether a property's rent can cover its monthly payment.
Who it can help. Investors buying or refinancing rental properties, including those growing a portfolio. These loans are for investment properties, not the home you live in.
How the ratio works. Divide the property's monthly rent by its monthly payment, including principal, interest, taxes, insurance and any HOA dues. A ratio of 1.0 means the rent covers the payment.
What's different. Many programs don't use tax returns, W-2s or pay stubs. Your credit, your assets and the property still matter.
Short-term rentals. Some programs can work with short-term rental properties.
Know the tradeoffs. These loans can come with higher rates, larger down payments or prepayment penalties than a conventional loan, and a lower ratio can mean tougher terms. If another loan is a better fit, we'll tell you.
What to have ready. The property address, the lease or expected rent, recent asset statements, and details on any other properties you own. We'll tell you what else we need before you pull everything together.
Have a property in mind? Call or text (303) 931-6776.
Not all programs are available in every state. All loans are subject to credit approval. Rates, terms and conditions vary by program.
Stephanie Cramm, NMLS #243972 | David Cramm, NMLS #565968 | Xpert Home Lending, Inc. NMLS #2179191 | Equal Housing Lender