DSCR stands for Debt Service Coverage Ratio Loan
This is a non-prime loan that makes for a very easy way of qualifying. The loan is basically an appraisal with rental comparables.
The Debt Service Coverage Ratio loan is a great option for investors who want a speedy solution when buying properties.
This non-prime loan is fairly straight forward because the property is used to qualify itself. Basically an appraisal is done providing a value and also rental comps. The rental comparables need to support the monthly payment of the DSCR mortgage.
The investor does not need to show tax returns or a history of purchasing properties like a fix and flip loan. They are also able to finance up to 20 properties this way.