# What Is a DSCR Loan?

> A DSCR loan is a real estate investment loan underwritten on property cash flow rather than personal income. Learn how DSCR loans work and who qualifies.

Canonical: https://riversidepark.capital/what-is-a-dscr-loan
Markdown: https://riversidepark.capital/what-is-a-dscr-loan.md

## Quick answer

A DSCR loan (Debt Service Coverage Ratio loan) is a real estate investment loan underwritten on the property's rental income relative to the loan payment — not the borrower's personal income or tax returns.

## Loan parameters

- Loan size: $500,000 – $10,000,000
- Loan type: DSCR

## Eligible assets

- Single-family rentals
- 2–4 unit rentals
- Short-term rentals

## Underwriting guidelines

- DSCR: property income ÷ total debt service
- Min DSCR: 1.10x generally required
- Min FICO: 650+
- Not owner-occupied

## FAQs

**Q: How is DSCR calculated?**

DSCR = Gross Rental Income ÷ Total Debt Service (principal, interest, taxes, insurance, and HOA). A DSCR above 1.0 means the property generates enough income to cover the payment.

**Q: What is a good DSCR ratio?**

A DSCR of 1.10x or higher is generally required. Higher DSCR ratios often result in better loan terms.

**Q: Do DSCR loans require income documentation?**

No. DSCR loans do not require personal income verification, W-2s, or tax returns. Qualification is based on property rental income.

## Related

- [DSCR Loans](https://riversidepark.capital/dscr-loans)
- [DSCR Loan Requirements](https://riversidepark.capital/dscr-loan-requirements)
- [DSCR Loan Max LTV](https://riversidepark.capital/dscr-loan-max-ltv)
- [DSCR Loan Rates](https://riversidepark.capital/dscr-loan-rates)

---
Source: Riverside Park Capital — https://riversidepark.capital/what-is-a-dscr-loan