If you’ve been eyeing your next investment property but are hitting a wall with traditional mortgage options, there’s good news: the Debt-Service Coverage Ratio (DSCR) loan could be the key to unlocking more doors—literally.
What Is a DSCR Loan?
Unlike conventional mortgages that rely heavily on your personal income and tax returns, a DSCR loan qualifies you based on the property’s projected rental income. If the expected rent covers the monthly mortgage payment (principal, interest, taxes, insurance, and HOA if applicable), you may qualify—no W-2s or pay stubs required.
Why DSCR Loans Are Ideal for Investors
This financing strategy is designed for people looking to expand their rental portfolios without adding personal income documentation to every deal. It’s especially helpful for:
- Self-employed borrowers
- Investors with multiple properties
- Those using LLCs for purchases
- Anyone looking for faster, more flexible financing
How It Works
The debt-service coverage ratio is calculated by dividing the expected monthly rent by the monthly mortgage payment. A DSCR of 1.0 or higher typically qualifies (meaning the rent covers the mortgage).
For example, if the monthly mortgage payment is $2,000 and the projected rent is $2,200, the DSCR is 1.10—right where you want it.
Why Work with a Mortgage Broker?
As a mortgage broker, I work with over 100 lenders and know exactly where to go to get these investor-friendly loan options done quickly and competitively. We streamline the process so you can focus on your next acquisition—not paperwork.
If you’re ready to grow your rental portfolio with a smarter, more flexible loan strategy, let’s connect.
📞 Call me at 206-949-5563
🌐 Visit www.YourMortgageCopilot.com to learn more or start your pre-approval.
Let’s make your next investment move a smart one.
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