Refinance Mortgage

Unlock Flexible Financing with Debt Service Coverage Ratio (DSCR) Loans

A Debt Service Coverage Ratio (DSCR) loan offers a flexible and innovative financing solution for real estate investors who are looking to expand their portfolios without being limited by the strict requirements of traditional lending. As a non-QM (non-qualified mortgage) product, DSCR loans are perfect for investors who might not have conventional income documentation such as W-2s or tax returns but can show that the property generates enough rental income to comfortably cover the mortgage payments.

What Is a DSCR Loan?

A DSCR loan is a unique type of mortgage designed specifically for real estate investors. Unlike traditional loans, which typically require in-depth verification of personal income, DSCR loans focus on the property’s potential to generate sufficient rental income to cover the mortgage payments. This approach makes it easier for investors with non-traditional or complex income sources to secure financing.

Who Should Consider a DSCR Loan?

  • Investors Without Traditional Income Documents: If you prefer not to submit W-2s, tax returns, or detailed employment records, a DSCR loan might be the perfect fit.
  • Self-Employed Borrowers: If your income is irregular or hard to document but you manage profitable rental properties, a DSCR loan provides the flexibility you need.
  • Experienced Real Estate Investors: For those who own multiple properties and may have already reached borrowing limits with traditional methods, a DSCR loan can help unlock further opportunities.

Typical DSCR Loan Requirements

  • Credit Score: A minimum of 680 is usually required, with better rates available for higher scores.
  • Down Payment: Typically at least 25% of the property’s purchase price.
  • DSCR Ratio: A minimum ratio of 1.2 (meaning the property's income must exceed monthly expenses by 20%).
  • Property Value: Most lenders require the property to be worth at least $150,000.

Why Choose a DSCR Loan?

With a DSCR loan, investors can qualify based on the performance of the property itself, rather than relying on personal income verification. This makes it a fantastic solution for those looking to expand or optimize their real estate portfolios. Whether you’re looking to purchase, refinance, or trade up, a DSCR loan offers a flexible and efficient way to grow your investment strategy.

At Todays Home Mortgage, we are committed to guiding you through the process clearly, confidently, and with a solution tailored to your goals.

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  • Phone Number

    (800) 396-1496

  • Email Address

    approval@todayshomemortgage.com

  • Address

    27 Orchard rd # 111, Lake Forest, CA 92630

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