For Homeowners & Investors
DSCR Loans
Want to qualify based on rental income instead of personal income? A DSCR Loan from Masters Home Mortgage could be the key to your next investment property.
DSCR Loans Features
No personal income verification required – qualification is based on property cash flow.
Can be used for purchase or refinance (including cash-out).
Loan amounts typically range up to $5 million or more, depending on the lender.
Flexible ownership structures allowed (LLCs, corporations, partnerships).
Perfect for…
- Real estate investors who want to qualify based on property income, not personal finances.
- Great for borrowers with multiple investment properties who don’t want debt-to-income ratio limits to slow them down.
- Helps expand portfolios quickly by focusing on cash flow instead of W-2s.
- Allows investors to leverage LLCs or business entities for property ownership.
Frequently Ask Questions
Q: What is a DSCR Loan?
Answer: A DSCR (Debt Service Coverage Ratio) Loan is a mortgage for real estate investors that qualifies based on a property’s rental income, rather than the borrower’s personal income. The key factor is whether the property generates enough cash flow to cover its mortgage payment.
Q: How is DSCR calculated?
Answer: he DSCR is calculated by dividing the property’s gross rental income by the total monthly housing expense (principal, interest, taxes, insurance, and HOA if applicable).
Q: Who can benefit from a DSCR Loan?
Answer: DSCR Loans are ideal for real estate investors who want to qualify based on cash flow instead of employment, tax returns, or personal debt-to-income ratios. They’re especially useful for investors with multiple rental properties or those buying through an LLC or business entity.
Q: What are the typical requirements for a DSCR Loan?
Answer: Most DSCR Loan programs require a minimum credit score of around 620 or higher, with better terms offered to those with stronger credit. Down payments typically range from 20% to 25%, depending on the property and borrower profile. Lenders generally look for a DSCR of 1.0 or above, meaning the property generates at least enough income to cover the mortgage payment. The property must also be an income-producing property, such as a single-family rental, multi-family unit, or in some cases a small commercial property.
Q: Can I use a DSCR Loan for multiple properties?
Answer:Yes. DSCR Loans are designed for investors and often allow financing of multiple rental properties. Many lenders permit up to 20 or more financed properties, making it easier to build and scale a real estate portfolio.