What Is A DSCR Rental Loan?
DSCR stands for debt service coverage ratio. In rental lending, it is commonly used to compare expected rental income with the proposed mortgage payment and related debt obligations on the property.
Unlike a traditional consumer mortgage review, a DSCR rental loan is typically focused on the investment property, lease income, market rent, property expenses, borrower credit profile, and reserves.
Common Uses
- Purchase or refinance of rental investment properties.
- Scaling a rental portfolio.
- Financing when property income is the central repayment source.
- Long-term hold strategies for real estate investors.
What Lenders Review
Lenders may review rent schedules, leases, appraised market rent, property type, title, insurance, credit, reserves, and overall repayment strength. Requirements vary by lender and program.
Commercial Capital Lenders helps investors organize rent and property information so the request can be evaluated efficiently.