DSCR Loans

Debt Service Coverage Ratio (DSCR) loans are a powerful financing tool for real estate investors, allowing them to qualify based primarily on the income a property generates rather than their personal income. Unlike traditional mortgages, which require detailed personal financial documentation such as tax returns or W-2s, DSCR loans focus on the property’s cash flow to determine the borrower’s ability to repay. This makes them particularly appealing for investors who own multiple properties or have complex income streams. 

The Debt Service Coverage Ratio itself is a key metric lenders use to evaluate DSCR loans. It measures the property’s net operating income against the mortgage payments. For example, a DSCR of 1.25 means the property generates 25% more income than is needed to cover the loan payment, which signals lower risk to the lender. The higher the DSCR, the more confident lenders feel about approving the loan. 

DSCR loans are commonly used for rental properties, multifamily units, and investment portfolios where property income is consistent and reliable. By relying on the property’s performance rather than personal earnings, investors can expand their portfolios more efficiently, purchase additional rental units, or refinance existing investments. 

At Maxim Real Estate Group, we specialize in DSCR loans tailored for real estate investors. Our team helps borrowers understand eligibility requirements, calculate DSCR, and structure financing to maximize cash flow and growth potential. With DSCR financing, investors gain faster approvals, flexible terms, and the ability to leverage their properties’ income to fund new acquisitions. For investors looking to grow strategically and efficiently, DSCR loans offer a smart, results-driven solution.