DSCR Loans

DSCR loans provide financing for income-producing properties.

Whether an investor needs to borrow money for a short-term rental or a long-term rental property, alternative lending products may be more beneficial than traditional options.

Mindful Money offers DSCR loans in Arizona, California and Colorado.


What is a DSCR Loan?


A debt service coverage ratio loan is a fast funding solution for real estate investors who need to borrow money without documenting personal income via W-2’s or tax returns.

A Property that produces enough income to cover its debts may qualify to obtain a DSCR loan.

Why DSCR Loans for Real Estate Investors?

For real estate investors, locating the right property is similar to finding a needle in a haystack.

Afterwards, investors who are not buying the property with cash will need to navigate a variety of financing hurdles.

However, a self-employed investor who needs a DSCR loan in Phoenix may qualify without regard to excessive tax write-offs.

DSCR Loan Requirements   

Sales contracts for attractive rental properties may be accepted for investors who are already pre-approved or who have the ability to close quickly.

A limited amount of DSCR loan requirements enable investors to consider fast funding opportunities.

Shown below are some standard DSCR loan requirements that may vary among lenders:

  • 20% - 25% down payment 

  • DSCR = 1.0 or greater

  • Above-average credit score 640+

Lower credit scores might need a higher down payment and higher scores may qualify for better interest rates.

A debt service coverage ratio of 1.0 indicates that a property generates income that’s equal to the property’s expenses.

Property expenses typically include PITIA (principal interest, taxes, insurance and association fees).

Apply for a DSCR Loan Online

DSCR loans are available throughout the USA.

Finding a lender with attractive terms and flexible DSCR loan requirements will take some extensive research and due diligence.

Contact Mindful Money, a licensed mortgage brokerage, about getting a DSCR loan in Arizona, California or Colorado. 

Ask to speak with Samantha Cooley about DSCR loans for real estate investors.

Apply here to see if you qualify for a DSCR loan.