Understanding DSCR Mortgage Loans: A Comprehensive Guide
In the realm of real estate financing, the debt service coverage ratio (DSCR) mortgage loan has emerged as a popular choice among borrowers. Unlike traditional loans, a DSCR mortgage loan qualifies borrowers based on an investment property's cash flow rather than the borrower's income. The Fundamentals of DSCR Mortgage Loans Understanding DSCR DSCR stands for debt service coverage ratio. It's a measure of a property's annual gross rental income versus its annual mortgage debt, including principal, interest, taxes, and other obligations.