Understanding DSCR Loans for Investors

For real estate investors looking to scale their portfolios quickly, traditional financing can become a bottleneck. Enter the DSCR loan.

What is a DSCR Loan?

DSCR stands for Debt Service Coverage Ratio. Instead of looking at your personal W-2 income or tax returns, lenders evaluate the income-producing potential of the property itself. If the rent covers the mortgage payment, you can often qualify.

How Do You Calculate DSCR?

The formula is simple: Net Operating Income (NOI) divided by Debt Service (the mortgage payment). A ratio of 1.0 means the property breaks even. Most lenders look for a DSCR of 1.2 or higher, indicating strong cash flow.

Benefits for Investors

DSCR loans offer incredible flexibility. There are no limits on the number of properties you can finance, the closing process is often faster, and your personal debt-to-income ratio is completely irrelevant to the approval process.

About Us at FIG Homes & Loans

We at FIG Homes & Loans (formerly FIG Mortgages) are a premier, veteran owned real estate brokerage and mortgage lender operating across all 50 states. We specialize in unifying the home buying, selling, and financing journey under one roof. Whether you are navigating the luxury market, seeking commercial real estate, or require tailored lending solutions like VA, FHA, Jumbo, Non-QM, and Bank Statement loans, our team delivers unbeatable wholesale rates and exclusive access to top tier properties. Experience the seamless advantage of having your real estate agent and mortgage broker working in perfect harmony.

Helpful Resources & Next Steps

• Calculate Your Payment
• Speak with an Advisor
• VA Loan Benefits
• FHA Loan Guidelines
• Get a Home Valuation
• Search Local Listings