Risk & Money-In
DSCR Loan Debt Service Coverage Ratio
An investment loan underwritten on the property’s income, not yours.
Why you care
It is the common route for STR buyers because it ignores your W-2 and your debt-to-income. You pay for that in rate and in down payment.
Worked example
Typically 20–25% down at 1–2 points above a conventional rate, sized so income covers debt at a ratio of about 1.0–1.25.
Taught in The Lender