DSCR mortgages are designed for real estate investors and use the property’s rental income to help determine qualification. Instead of relying primarily on personal income or employment documentation, the lender evaluates whether the property generates enough income to support the monthly housing payment.

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Who Is a DSCR Mortgage Best For?

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A DSCR mortgage may be a great fit for an investor purchasing or refinancing a rental property who prefers to qualify based on the property’s cash flow. It can be especially useful for self-employed borrowers, investors with multiple properties, or buyers whose tax returns do not reflect their full financial strength.

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Examples:

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• An investor purchasing a long-term rental property with sufficient projected rental income.

• A self-employed borrower who wants to qualify without traditional income documentation.

• An experienced investor refinancing a rental property to access equity or improve loan terms.

• A buyer expanding an investment portfolio without using conventional debt-to-income qualification.

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Borrowers do not have to meet every example above, and qualification requirements vary by lender, property type, rental income, credit profile, and available reserves.