Debt Service Coverage Ratio (DSCR) Loans
Real Estate Financing Based on Property Income
Debt Service Coverage Ratio (DSCR) Loans
Financing Based on Property Income, Not Personal Income
Debt Service Coverage Ratio (DSCR) Loans focus on the income a property generates to qualify borrowers, making them ideal for real estate investors who want to leverage cash flow rather than personal income for financing.
Get Started in 3 Easy Steps
- Submit your loan application with property and income info
- Underwriting evaluates DSCR and credit
- Receive approval and fund your investment property loan
Competitive Interest Rates
from 6.75% to 12.99%
Flexible Loan Options
12 months to 30 years
Varied Loan Amounts
From $75,000 up to $5,000,000
Learn how DSCR Financing works!
Debt Service Coverage Ratio (DSCR) Loans:
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- Loan Amounts: From $75,000 up to $5,000,000 based on property income
- Terms: Flexible: 12 months to 30 years
- Interest Rates: Competitive rates ranging between 6.75% and 12.99%
- Collateral required: Investment property or real estate securing the loan
- Qualifications:
- Minimum credit score of 600 (varies by lender)
- Sufficient property income (NOI) to cover debt payments (DSCR ratio typically 1.20 or higher)
- Clear title and appraisal of the investment property
- Proof of property income (leases, rent rolls, financial statements)
- Basic financials and borrower information
- Loan Amounts: From $75,000 up to $5,000,000 based on property income
Faster Funding
DSCR Loans for Investors
DSCR Loans are specialized real estate loans that use the Debt Service Coverage Ratio—the ratio of a property’s net operating income to its debt payments—as the primary measure of creditworthiness. Lenders look at whether the property’s income can comfortably cover the loan’s debt service, reducing risk and simplifying approval, especially for investment or rental properties.
Benefits of DSCR Loans
- Ideal for investors financing commercial real estate, rental homes, multi-family units
- Qualify based on property cash flow, not just personal income or credit
- Flexible terms and loan sizes tailored to investment needs
- Long-term financing available up to 30 years
- Build wealth through income-producing real estate without heavy personal guarantees
Who should consider DSCR Loans?
- Real estate investors purchasing or refinancing rental properties
- Owners of commercial or multi-family properties
- Landlords seeking financing that focuses on property income
- Businesses investing in office buildings, retail centers, or industrial properties
How It Works
- Apply with property and financial details
- Lender evaluates DSCR by analyzing property income vs. debt obligations
- Loan amount and terms offered based on income and property value
- Close loan with property as collateral
- Make monthly payments supported by rental or commercial income
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How We Work. Our Mission & Values
At Faster Funding, we know the importance of making smart business decisions and we strive to provide the financial solutions to help make it easier. We want to help make sure that you have the right loan, which may include Debt Service Coverage Ratio (DSCR) financing, for your needs. If you’re not sure what the best option is for you, just give us a call and one of our specialists will help you choose.
Faster Funding is Here to Help
Frequently Asked Questions
We understand you are probably wondering how this all works. Here are some key topics to help you make informed decisions to unlock your business’s growth opportunities.
What is a good DSCR ratio for loan approval?
Most lenders require a DSCR of 1.20 or higher, meaning the property generates 20% more income than its debt service.
: Can I use DSCR loans for residential rental properties?
Yes, DSCR loans apply to single-family rentals, multi-family units, and commercial real estate.
Is a high credit score required?
A minimum score of 600 is typically required, but strong property income often weighs more heavily.
Can I refinance an existing investment property?
Yes. DSCR loans are commonly used for refinancing to improve terms or access equity.
Have Questions?
Contact us to learn more about our DSCR loans. Our team of experts is standing by to help you find the perfect financial solution for your business.
