Finance rentals using property cash flow (Debt Service Coverage Ratio).
A Debt Service Coverage Ratio (DSCR) loan is a specialized financing product for real estate investors that qualifies borrowers based on the property's cash flow rather than personal income. This makes it an ideal solution for investors who have irregular income, operate as self-employed professionals, or manage multiple properties.
With a DSCR loan, we evaluate the property's ability to generate sufficient rental income to cover all debt payments. This includes rent collected (or projected for new rentals), minus operating expenses, taxes, insurance, HOA fees, and utilities.
DSCR = Annual Net Operating Income ÷ Annual Debt Service
A DSCR of 1.0+ means the property generates enough income to cover loan payments.
Property income exactly covers debt service
Property income covers debt service with 25% cushion
Strong cash flow with ample margin above payments
ℹ️ Most DSCR lenders accept ratios as low as 1.0–1.25, making this loan product ideal for properties generating steady income.
DSCR loans are perfect for investors looking to grow and manage diversified portfolios.
Build long-term wealth with traditional single-family rentals and multifamily units.
Buy, Renovate, Rent, Refinance, Repeat—DSCR loans work perfectly for this strategy.
Lock in rates and build equity with long-term rental income.
Airbnb, VRBO, and other STR properties qualify based on rental income.
2-8 unit properties and small multifamily complexes (or larger on case-by-case basis).
No need to provide complex tax returns—qualification is based on property performance.
DSCR financing offers significant advantages for serious real estate investors.
Instead of personal income documentation, lenders evaluate the property's rental income and expenses.
Less reliance on tax returns, pay stubs, or W2s—focus is on property performance.
Choose between stable fixed-rate loans or adjustable-rate options for flexibility.
Some DSCR programs offer interest-only periods to minimize initial payments.
Access equity from your properties for additional investments or business needs.
Streamlined underwriting means you can close faster than traditional mortgages.
These are general guidelines and may vary based on the specific lender and market conditions.
From quote to close, we make the DSCR lending process straightforward.
Share your property details, estimated rent, expenses, and credit range. We'll provide a preliminary rate quote within 24 hours.
If you approve the terms, we prepare a formal term sheet outlining loan amount, rate, terms, and conditions. This initiates the formal application.
Final underwriting, appraisal, title work, and closing. We coordinate everything and get you funded as quickly as possible.
Have questions about DSCR loans? We've got answers.
Get a personalized DSCR loan quote from Summit Commercial Lending. Our lending specialists will review your property details and provide competitive terms tailored to your investment strategy.
Or call us directly:
📞423-470-9774Fill out the form below and we'll contact you within 24 hours
DSCR loans are designed for investors who are serious about building wealth through real estate. Let us help you access the financing you need.