CalculateRealEstateROI

Financing · Guide

DSCR Loans Explained

Underwrite property cash flow, not personal income — the workhorse of scaled portfolios.

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

Key takeaways

  • DSCR 1.20+ required.
  • No personal income docs.
  • 75% LTV typical.
  • Rate 75–125 bps over conventional.
  • No cap on count.

Core concepts

DSCR formula

NOI / debt service.

LTV

65–75%.

Income docs

None.

Step-by-step framework

  1. 1Pre-qual.
  2. 2Document property cash flow.
  3. 3Close in 21–30 days.

Common mistakes to avoid

  • Optimizing for lowest rate vs PPP.

Frequently asked questions

DSCR min?

1.20.

Self-employed OK?

Yes.

Foreign national?

Yes.

PPP terms?

1–5y step-down.

Action checklist

  • ☐Pre-qual.
  • ☐Property cash flow doc.
  • ☐DSCR ≥ 1.20.
  • ☐PPP reviewed.

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