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Debt-Service Coverage Ratio (DSCR) Loans

Giving investors the ability to quickly scale their real estate portfolios 

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What is a DSCR loan?

A debt-service coverage ratio (DSCR) loan is a type of non-QM loan for real estate investors. Borrowers are allowed to qualify based on cash flow generated from an investment property as opposed to their personal income. This is a great option for real estate investors who may not be able to qualify for a traditional investment loan.

DSCR: How is it calculated?

DSCR formula
Wood Frame of House

DSCR: Loan Program Highlights

  • No Minimum Debt-Service-Coverage Ratio (DSCR)

  • Purchase at 85% LTV with a 700 credit score

  • Purchase at 80% LTV with a 660 credit score

  • A minimum credit score requirement of 580

  • Investment properties can be owned by an LLC

DSCR: Pros and Cons for Real Estate Investors

Pros of DSCR

  • Allows investors an alternative way to fund investment properties

  • Investors can use the income generated from an investment property instead of their own income to qualify

  • Gives investors the ability to quickly scale their real estate portfolios

Cons of DSCR

  • Higher down payment requirements

  • DSCR loans tend to have higher interest rates than standard rental loans

Investor Cash Flow Loans Official Logo with Slogan

Investor Cash Flow Loans is a non-traditional loan service that specializes in investment property loans for owners, investors, and developers in need of funding outside the scope of traditional banks and lenders.

196 West Ashland Street, Suite 626
Doylestown, PA 18901

Phone: (215) 383-9397 | Fax: (267) 807-3147

Mon-Fri, 9:00am - 5:00pm E.T.

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Copyright © 2022 by BHG Mortgage Lending, LLC d.b.a. Investor Cash Flow Loans. All Rights Reserved.

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