Is a DSCR Loan Right for You?

A DSCR loan may be a good option if you are purchasing or refinancing an investment property and want to qualify based on the property’s rental income rather than your personal income. Instead of relying heavily on tax returns, W-2s, or traditional income documentation, DSCR loans focus on whether the property can generate enough income to support the mortgage payment.

A DSCR loan may be right for real estate investors, self-employed borrowers, business owners, or anyone with complex income who wants a more flexible way to finance rental property. The Bromley Mortgage Team can help you review the property’s income potential, compare available options, and determine whether a DSCR loan fits your investment goals.

Schedule a Call

Benefits of a DSCR Loan

A DSCR loan offers a flexible financing solution for real estate investors by focusing primarily on the cash flow of the property. This can make it easier for borrowers with non-traditional income, multiple properties, or complex tax returns to qualify for investment property financing.

Common benefits of a DSCR loan include no traditional income verification, no personal tax returns in many cases, the ability to finance short-term or long-term rental properties, and a streamlined qualification process based on the property’s rental income. DSCR loans can also be useful for investors looking to grow their portfolio without relying solely on personal income documentation.

Schedule a Call

General Eligibility Requirements for a DSCR Loan

DSCR loan eligibility is typically based on the property’s rental income, the proposed mortgage payment, the borrower’s credit profile, the down payment or equity position, and the overall property type. Lenders usually calculate the debt service coverage ratio by comparing the property’s rental income to its monthly mortgage payment, including principal, interest, taxes, insurance, and any applicable HOA dues.

While requirements vary by lender and loan program, borrowers generally need a qualifying investment property, sufficient rental income or market rent, a solid credit profile, and enough down payment or equity. The Bromley Mortgage Team can help you review the numbers, understand the available DSCR loan options, and determine whether the property may qualify.

Schedule a Call

Check out what your investor ratio is by using our DSCR Investor Mortgage Calculator...

Our mortgage calculators are for demonstration purposes only and may not reflect actual numbers for your specific mortgage. Contact us and we will walk you through the best possible mortgage scenario for your specific needs!

$
$50,000 $2 Million
$
$500 $10,000
$
%
0% 80%
Loan Term
%
0% 20%
Credit Score
Advanced (optional)
$
%
0% 5%
$
%
0% 15%
$ /month
The DSCR for this loan is
Monthly Payments
Principal & Interest (P&I)
$
Taxes & HOA
$
Homeowners Insurance
$
Debt Service Coverage Ratio (Rental Income / Mortgage Payment)
Rental Income $3,000
Monthly Mortgage $3,000
DSCR 0.90
Estimated Taxes & Insurance Property taxes are generally estimated to be 1.2% of the home's value, but may vary based on your location. Annual homeowners insurance is roughly 0.35% of the home's value but can change based on insurer. Your loan specialist can help you determine property tax and insurance rates in your area.
Save & Email Results
Estimated Payment $ /mo
Loan amount
$
Down payment
$
Interest rate
Loan term
Property tax
Homeowner's insurance
$
HOA dues
$
Payment Breakdown
Amortization Schedule Breakdown
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan. Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
  • Principal payments: $$240,000 (the amount borrowed)
  • Interest payments: $$297,554 (the cost of borrowing)

Get started by using one of our FREE tools!

No matter what your situation is, there is a home financing solution for you. We are ready to guide you through your options and get you the best deal possible!

Conventional

Learn More!
Learn more

FHA

Learn More!
Learn more

VA

Learn More!
Learn more

DSCR

Learn More!
Learn more

Jumbo

Learn More!
Learn more

USDA

Learn More!
Learn more

HELOC

Learn More!
Learn more

Fix & Flip

Learn More!
Learn more

Check out our other mortgage calculators

Access our top-rated mortgage calculators to expertly assess your financing options, compare various loan types, and make informed decisions for your home buying journey.

General Mortgage Payment Calculator

See what your monthly payment could be with our general repayment mortgage calculator.

Affordability Calculator

Assess how much home you can afford based on your income, expenses, and desired down payment.

Early Payoff Calculator

See how making extra payments can help you pay off your mortgage faster and save on interest.

Rent vs Buy Calculator

Compare the costs of renting versus buying a home to determine the best financial decision for your situation.

Seller Net Profit Calculator

See how much you could make from your home sale with our Seller Net Profit Calculator.

Rate Buydown Calculator

Check out how much you can save with a seller-paid rate buydown.

HELOC Calculator

Estimate your credit limit and monthly payments with our HELOC Calculator!

Mortgage Comparison Calculator

Compare different mortgage options side by side to find the best fit for your financial needs.

Refinance Comparison Calculator

Evaluate the potential savings and costs associated with refinancing your existing mortgage.

DSCR Investor Calculator

See what your investor ratio is with our DSCR calculator.

Adjustable Rate Mortgage Calculator

Determine your potential monthly payments and interest costs for an adjustable-rate mortgage over time.

VA Calculator

Estimate your monthly payments and total costs for a loan backed by the Department of Veterans Affairs.

Jumbo Calculator

Calculate your monthly payments and total costs for a jumbo mortgage that exceeds conforming loan limits.

FHA Calculator

Determine your potential monthly payments and total costs for a Federal Housing Administration loan.

Conventional Calculator

See the monthly payment and total cost for a conventional mortgage loan.

USDA Calculator

Calculate the costs and monthly payments associated with a USDA Rural Development loan.

203k Renovation Calculator

Analyze your debt service coverage ratio to evaluate the profitability of an investment property.