When you’re building a real estate portfolio, traditional mortgage qualifications can get in the way. That’s where DSCR loans come in.
What Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio. It’s a type of loan designed specifically for real estate investors. Instead of looking at your personal income, lenders use the income potential of the property to determine if you qualify.
So, if you’re buying a rental property, the lender looks at how much rental income it can generate vs. how much your mortgage payment would be. If the income covers (or nearly covers) the payment, you’re in business.
Why Choose a DSCR Loan?
- No income verification required
- Faster approvals
- Perfect for scaling your rental portfolio
- Ideal for self-employed investors
- Flexible underwriting based on property cash flow, not W2s
These loans are especially popular for Airbnb hosts, long-term landlords, and investors with multiple properties. The less red tape, the better.
How DSCR Is Calculated
DSCR = Net Operating Income / Debt Obligations
For example, if your property brings in $3,000/month in rent and your monthly loan payment is $2,500, your DSCR is 1.2 (which is solid).
Most lenders look for a DSCR of at least 1.0, but the higher the better.
DSCR Loans vs. Traditional Loans
| Feature | DSCR Loans | Traditional Loans |
|---|---|---|
| Income Requirement | Based on property rent | Based on your job |
| Speed | Fast approval | Slower, more documents |
| Flexibility | Very flexible | Rigid qualification |
| Best For | Investors | Owner-occupants |
Ready to Grow Your Real Estate Empire?
If you’re serious about real estate investing and tired of jumping through hoops, a DSCR loan could be the key to unlocking your next deal.
🔗 Apply today with Truss Financial Group — Whether you’re buying your first rental or your tenth, Truss helps you close faster, with less hassle. No income docs. No W2s. Just smart lending that works for you.