DSCR vs Conventional Investment Property Loans
A DSCR loan qualifies a real estate investor based on the income generated by the property, while a conventional investment property loan evaluates the borrower’s personal income and tax returns.
Rockstar Mortgage has been helping investors across Atlanta and Georgia since 2002 and has earned the Best of Gwinnett award for more than 13 years.
What DSCR Means
DSCR stands for Debt Service Coverage Ratio. It measures whether rental income covers the mortgage payment.
DSCR Formula
| Example | Amount |
|---|---|
| Monthly Rent | $2,200 |
| Mortgage Payment | $1,700 |
| DSCR | 1.29 |
DSCR vs Conventional Loans
| Feature | Conventional Loan | DSCR Loan |
|---|---|---|
| Personal Income Required | Yes | No |
| Tax Returns | Required | Not Required |
| Based on Property Income | No | Yes |
| Best For | Occasional Investors | Portfolio Investors |