Debt Service Coverage Ratio (DSCR) loans are a go-to option for real estate investors looking to expand their portfolios without relying on personal income verification. These loans focus on the income generated by the property itself, making them ideal for purchasing or refinancing rental properties.

Key Features of DSCR Loans:

• Qualification: Based on the property’s income rather than the borrower’s personal income.
• Loan Limits: Typically up to $2 million, though limits may vary by lender.
• Down Payment: Usually 20% to 25%, depending on the property’s cash flow.
• DSCR Requirement: Lenders prefer a ratio of 1.0 or higher, meaning the property’s income covers at least 100% of its expenses.
• No Personal Income Verification: Streamlined approval process for investors.