09/28/2026
🏡💰 Want to invest in real estate? There’s another way to finance your next property.
For investors, traditional mortgage financing can become more difficult as the number of properties in their portfolio grows.
That’s where DSCR loans come in.
🔑 What is a DSCR loan?
DSCR = Debt Service Coverage Ratio
Instead of relying primarily on your personal income, the loan focuses on whether the property’s projected rental income can cover its monthly expenses.
📊 Gross Rent ÷ PITIA = DSCR
PITIA includes:
🏦 Principal
💵 Interest
🏠 Property taxes
🛡️ Insurance
🏢 HOA dues
📈 A simple example
A property generates $3,100/month in rent.
Its monthly PITIA is $2,471.
$3,100 ÷ $2,471 = 1.25 DSCR
That means the projected rental income is 25% higher than the monthly property expenses.
🏘️ What can potentially qualify?
Depending on the lender and program:
🏡 Single-family homes
🏢 Condos
🏘️ 2–4 unit properties
🌴 Certain short-term rentals
⚠️ DSCR loans can come with higher interest rates, larger down payments, reserve requirements and prepayment penalties, so the terms should be carefully reviewed with a qualified lender.
💡 For investors, the key question isn't only “Can I get the loan?” — it’s “Does the property’s cash flow make sense?”
Diana Hejeile
✨ Luxury Real Estate Advisor
📞 +1 (954) 629-2623
📲 Diana Hejeile
