What is a DSCR Loan?
A Debt Service Coverage Ratio (DSCR) loan is a mortgage built for real estate investors. Instead of qualifying you on personal income, tax returns, or employment history, the lender looks at the income the property itself generates. The DSCR compares the property’s monthly rental income to its full monthly payment — principal, interest, taxes, insurance, and any HOA dues. A ratio of 1.0 means the rent covers the payment.
Because qualification is based on the property’s cash flow rather than your personal debt-to-income ratio, DSCR loans are a popular fit for self-employed investors, borrowers with complex tax returns, and anyone scaling a rental portfolio beyond what conventional guidelines allow. Typical uses include buying your next rental, pulling cash out of an existing property, or replacing a hard-money loan with long-term financing.
DSCR financing is available for purchases, rate-and-term refinances, and cash-out refinances on 1–4 unit rental properties — and many programs extend to short-term rentals and small multifamily buildings.
Global Equity Finance can walk you through your property’s numbers and match you with the right DSCR program for your goals.
