A DSCR loan is built for real estate investors. Instead of qualifying on your personal income and tax returns, the lender qualifies the property: if the rent covers the mortgage payment — measured by the Debt Service Coverage Ratio (rent ÷ total housing payment) — the loan works. A DSCR of 1.0 means rent breaks even with the payment; many lenders prefer 1.20 or higher, and better ratios earn better pricing.
Good fit if: you’re buying or refinancing a rental — single-family, 2–4 unit, or condo — especially if you already own several properties, your tax returns show heavy write-offs, or you simply don’t want your personal income under a microscope. No employment or income documentation is required, loans can often close in an LLC’s name, and many programs have no cap on the number of financed properties.
Down payments typically run 20–25%, and pricing improves with a stronger credit score, lower loan-to-value, and higher DSCR. I work with investor-focused lenders across Loan Factory’s network and will model the ratio on your target property before you write an offer, so you know the deal qualifies before you’re committed.
True Home Lending is operated by Navaneet Dutt, Mortgage Loan Originator, NMLS #2262708, with Loan Factory, NMLS #320841. All loans are subject to credit and property approval. Program availability, rates, terms, and conditions are subject to change without notice and may vary by state, lender, and borrower profile. Not all applicants will qualify. This content is for education only and is not a quote, a loan approval, or a commitment to lend. Equal Housing Opportunity.