DSCR Loan Programs
Helping real estate investors secure mortgages based on property income, not personal income.
King Mortgage Group, LLC provides clear, responsible guidance for DSCR loans and investment decisions.
Explain What a DSCR Mortgage is
A type of non-QM investment loan where approval is based on the property’s rental income versus its debt payment. Common for rental property investors, personal income verification is usually minimal or not required.
Explain How DSCR Works (Simply)
DSCR = Monthly rental income ÷ Monthly mortgage payment. A DSCR of 1.0 means the rent covers the mortgage. Many lenders prefer 1.0–1.25, but some allow lower with adjustments.
Help Investors See If It’s a Fit
Best for investors with strong rental income, borrowers who don’t qualify easily with W-2s or tax returns, and long-term rental strategies (sometimes short-term rentals). Not ideal if the property doesn’t cash flow or the investor can qualify for a conventional loan at a lower rate.
Walk Through the Process
Pre-qualification using estimated rent or current lease, appraisal with a rent schedule, underwriting focused on property performance, and down payment requirements (often 20–25%+).
Explain Costs & Trade-Offs
Pros: no personal income documentation, scales well for investors with multiple properties, faster qualification for experienced investors.
Cons: higher interest rates than conventional loans, investment-only use (not primary homes), cash reserves usually required.
Help Avoid Common Pitfalls
Avoid overestimating rental income, ignoring taxes, insurance, and maintenance, not understanding prepayment penalties, and assuming all DSCR loans are the same (terms vary widely).
Connect to Trusted Resources
Lenders experienced in DSCR programs, real estate education resources, accountants or advisors familiar with rental properties.