A DSCR loan is an investment-property mortgage that focuses on rental income relative to the property’s debt payments. For eligible investors, it can offer an alternative to qualifying through personal income documentation and a traditional debt-to-income calculation.

What Does DSCR Mean?

DSCR stands for debt service coverage ratio. For many residential rental programs, lenders compare qualifying rent with principal, interest, taxes, insurance, and association dues. A ratio of 1.00 means qualifying rent equals those costs. It does not mean the property covers every operating expense.

What Lenders Still Review

• Credit and borrowing history.

• Down payment or available equity.

• Cash reserves.

• Property value, condition, and rent documentation.

• Ownership structure and program eligibility.

Match the Loan to Your Strategy

Barren Hill Mortgage helps investors explore purchase, refinance, and cash-out options for eligible rental properties. LLC ownership and short-term rentals may be eligible under certain programs. Requirements, prepayment penalties, and rent calculations vary by lender.