Is a DSCR Loan Right for you?
If you’re a real estate investor looking to finance a rental property based on its income—not your personal income—then a DSCR loan might be exactly what you need. This type of loan focuses on the property’s ability to generate cash flow, making it ideal for investors who want to expand their portfolio without the hassle of proving traditional income.
Whether you’re self-employed, have multiple income sources, or simply want a more flexible path to property ownership, DSCR loans are designed with investors in mind. If the numbers make sense, the deal moves forward.
Benefits of DSCR Loans
The main benefit of a DSCR loan is simplicity. Instead of diving into your tax returns, pay stubs, or W-2s, lenders look at the rental income of the property itself. This means faster approvals, less paperwork, and greater flexibility for borrowers with complex finances.
You also gain the power to scale quickly—many DSCR programs allow multiple properties, no personal income verification, and competitive rates based on cash flow performance. It’s a streamlined way to fund rentals, grow your portfolio, and keep your business moving.
Eligibility Requirements for DSCR Loans
To qualify for a DSCR loan, lenders focus on one thing: Does the rental income cover the debt? A DSCR (Debt Service Coverage Ratio) of 1.0 or higher is typically required, meaning the property brings in at least enough income to cover the loan payments. The higher the ratio, the stronger your position.
Most programs also require a minimum credit score—usually around 620–680—and a down payment of 20%–25%. No income docs are needed, but a lease agreement, rent roll, and property appraisal are common. At Foundation Lending Partners, we simplify the process and help you secure the funding your investments deserve.
Check out what your investor ratio is by using our DSCR Investor Mortgage Calculator…
Our mortgage calculators are for demonstration purposes only and may not reflect actual numbers for your specific mortgage. Contact us and we will walk you through the best possible mortgage scenario for your specific needs!
The DSCR for this loan is
Monthly Payments
Principal & Interest (P&I)
$
Taxes & HOA
$
Homeowners Insurance
$
Debt Service Coverage Ratio
(Rental Income / Mortgage Payment)
Rental Income
$3,000
Monthly Mortgage
$3,000
DSCR
0.90
Estimated Taxes & Insurance
Property taxes are generally estimated to be 1.2% of the home's value, but may vary based on your location. Annual homeowners insurance is roughly 0.35% of the home's value but can change based on insurer. Your loan specialist can help you determine property tax and insurance rates in your area.
Estimated Payment
$ /mo
Loan amount
$
Down payment
$
Interest rate
Loan term
Property tax
Homeowner's insurance
$
HOA dues
$
Payment Breakdown
Amortization
Principal vs. Interest
Amortization Schedule Breakdown
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan.
Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
- Principal payments: $$240,000 (the amount borrowed)
- Interest payments: $$297,554 (the cost of borrowing)
No matter what your situation is, there is a home financing solution for you. We are ready to guide you through your options and get you the best deal possible!
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