A DSCR loan lets a real estate investor qualify on the property's cash flow instead of their personal income. DSCR stands for debt-service coverage ratio, and it is the single number a lender leans on most when sizing this kind of loan.
The ratio, in one line
DSCR is the property's monthly rent divided by its monthly debt service (principal, interest, taxes, insurance, and any association dues). A DSCR of 1.0 means the rent exactly covers the payment. Above 1.0 means the property produces more than it costs to carry; below 1.0 means it does not.
Why investors use it
Because the property qualifies itself, a DSCR loan sidesteps the personal-income documentation that slows conventional financing. That makes it a practical tool for building and refinancing a rental portfolio, especially for borrowers whose tax returns do not reflect their real buying power.
What moves a DSCR up or down
Higher rents and lower carrying costs push the ratio up. A larger loan, a higher rate, or higher taxes and insurance push it down. Small changes to the rate or the down payment can move a marginal deal from below 1.0 to comfortably above it, which is why running the numbers early matters.
Where Sphinx Capital's DSCR program fits
Our DSCR program runs from $100K to $20M, up to 80% LTV, with rates from 6.50% and closings as fast as 15 days. Terms are as-published and rate-sheet-governed; we confirm current figures before you apply. Use the calculator to get a quick read, then start the application when the deal is clear.
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Start your application when you're ready, or talk with us first if you want help choosing the right loan.