DSCR loan
Debt-Service Coverage Ratio loan. A non-QM investment property loan that qualifies based on the property’s projected rental income rather than the borrower’s personal income. DSCR = monthly rent ÷ monthly PITI. Most lenders require a ratio of 1.0–1.25 or higher. No personal income documentation required.
How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.
Related terms
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Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.