🔍 What is DSCR?

DSCR = Net Operating Income (NOI) ÷ Debt Service

• A DSCR of 1.0 = break-even
• Above 1.25 = generally considered strong
• Below 1.0 = property isn’t generating enough income to cover the loan

💡 How DSCR Loans Work

Instead of verifying employment or tax returns, lenders evaluate:

• Rental income
• Property cash flow
• Operating expenses

✅ Benefits

• No personal income verification
• Faster approvals
• Ideal for scaling portfolios

⚠️ Considerations

• Higher interest rates
• Larger down payments may be required

👉 Best for: Real estate investors focused on cash-flowing properties.