Glossary

What is DSCR (Debt Service Coverage Ratio)?

DefinitionMonthly rent divided by the monthly mortgage payment including taxes, insurance and HOA (PITIA). Used to qualify investment-property loans without personal income.

Where it matters

Investment property

DSCR Loans

A DSCR loan is an investment-property mortgage that qualifies you on the property’s rental income divided by its monthly payment (the debt service coverage ratio).

Learn more ›

Related terms

1031 Exchange
Amortization
Appraisal
APR (Annual Percentage Rate)
ARM (Adjustable-Rate Mortgage)
ARV (After-Repair Value)
Asset Depletion
Assumable Mortgage
Balloon Payment
Bank Statement Loan
Blanket Loan
BRRRR
Cap Rate
Cash to Close

Call us Get started