DSCR Rental Income

DSCR stands for Debt Service Coverage Ratio, and our DSCR mortgage is designed to help real estate investors and property owners finance their properties with greater flexibility and control. Unlike traditional mortgages that focus primarily on the borrower’s credit score and income, DSCR mortgages look at the cash flow of the property itself to determine the borrower’s ability to repay the loan.


With a DSCR mortgage, borrowers can secure financing for their properties based on the property’s actual income and expenses. This means that borrowers with lower credit scores or irregular income streams can still qualify for financing if their properties generate enough cash flow to cover the loan payments.

Program Features

FICO 620

Up to 80% CLTV

Loan amounts up to $3 million

Max cash-on-hand $1 million, no limit for CLTV <55%

40- & 30-year fixed, 5/6 & 7/6 ARM terms

No income or employment verification

DSCR as low as 0 (min. FICO 680)

Eligible for Non-Permanent Residents and Foreign Nationals (under Foreign National DSCR Program)

Ownership of any property within the past 24 months

1-4 Units, Condotels allowed

Short-term rentals up to 80% CLTV

Mixed-use and multi-family (5-8 units) allowed

Gift Funds allowed

Min Borrower Contribution is 20%

Frequently Asked Questions

A debt service coverage (DSCR) loan is one that qualifies borrowers through an investment property’s cash flow rather than the borrower’s income. DSCR loans — also known as investor cash flow loans — are frequently used by real estate investors to qualify for mortgages and buy investment properties.

The debt service coverage ratio (DSCR) is the ratio of an investment’s net operating income to its total debt service. It is a way of determining whether a borrower has enough cash flow to pay its current debt obligations.


DSCR can have applications in business, government, and personal finances. Like DSCR loans, this ratio is often used in real estate to determine whether an investment property’s cash flow can cover its mortgage payments.


The higher the DSCR, the better the ratio. A DSCR above 1 means that an investment property has positive cash flow and enough net operating income to cover its debts. As a general rule, anything above 1.25 is considered a good DSCR.


When your borrower applies for a mortgage loan, we look at their income to determine how much they can afford as a monthly payment. The key figure examined is the debt-to-income ratio (DTI), which is the percentage of their monthly income that goes toward debt.


But in the case of investment properties, Bananaloans offers DSCR loans. Rather than looking at a borrower’s income, we consider the expected monthly rent from the property. And instead of using the DTI to determine eligibility, we look at the DSCR.

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