DSCR loans (Debt Service Coverage Ratio) allow first-time investors to qualify based on property rental income rather than personal income, enabling faster closings and financing for multiple properties. However, they feature higher interest rates, larger down payments (20-25%+), and prepayment penalties, making them better suited for properties with strong, verified

DSCR loans, or debt service coverage ratio loans, are a type of loan that is used to evaluate a borrower’s ability to repay a loan. DSCR lenders typically require a minimum ratio of 1.25 to 1, meaning that the borrower’s net operating income must be 25% greater than their total