CalculateRealEstateROI

Financing

DSCR Loan

Investor loan qualified on property cash flow rather than personal income.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

No tax returns or W-2 — the property's DSCR carries the loan. Fast, flexible, slightly higher rate.

Examples

  • DSCR 1.20+ at 75% LTV is standard.
  • Rates typically 0.5-1.5% above conventional.

Common mistakes

  • Forgetting DSCR loans require LLC and have prepayment penalties.

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