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Debt Service Coverage Ratio Loans (DSCR)- The Loan Choice for Investors.

Writer's picture: Titan LendingTitan Lending

A DSCR loan is a mortgage based on cash flow generated by an investment property. These loans are ideal for real estate investors with complex incomes looking for an option to finance investment properties without the hassle of providing employment income, complicated tax returns, W2s, or paystubs. This type of loan can also be a great option if you own several investment properties and have reached the traditional credit limit of ten or are looking to cash out on your investment property's equity to reinvest in growing your portfolio.





What is DSCR?


Debt to service coverage ratio is the ability to repay the yearly debt payment in relation to the amount of net operating income produced by the asset, referred to as DSCR. A higher DSCR ratio indicates a greater amount of net operating income that can be used to repay the debt.




*Essentially, DCSR reveals if the property is making enough money to cover the mortgage or not*


What are the benefits of a DSCR Loan?

  • Quicker application and closure times.

  • Personal income is not considered with a DSCR Loan.

  • You can commit to multiple properties simultaneously.

  • Cash Out up to 75% LTV

  • Ideal for both novice and seasoned real estate investors.

  • Easier to qualify for than other investment property loans.


What are the Borrower Qualifications for a DSCR Loan?

  • The credit Score Requirement is typically 620 or higher.

  • Debt-to-Income is not taken into account like your traditional mortgage.

  • Demonstrate the ability to make your mortgage payment by providing proof of income from your rental property.

  • DSCR Ratio - (how well the property cash-flows)

The DSCR Loan Program could be the best solution for your investment needs!




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Attn: Texas Applicants: Consumers wishing to file a complaint against a company or a residential mortgage loan originator should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the Department’s website at www.sml.texas.gov. A toll-free consumer hotline is available at 1-877-276-5550.

The Department maintains a recovery fund to make payments of certain actual out-of-pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the Department prior to the payment of a claim. For more information about the recovery fund, please consult the Department’s website at www.sml.texas.gov.

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Titan Lending is proud to be affiliated with the Project Nova Organization, a registered 501©(3) non-profit organization based in Dallas, TX. In support of its mission, Titan Lending pledges a donation of $100 for every loan close.

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