The DSCR or debt service coverage ratio is the relationship of a property’s annual net operating income (NOI)
to its annual mortgage debt service (principal and interest payments).
More likely to qualify for loan and receive an offer with better terms
Increases your chances of lower interest rates and a higher borrowing amount
Calculating the debt service coverage ratio
he DSCR calculation is rather simple. A business’s DSCR is calculated by taking the property’s annual net operating income (NOI) and dividing it by the property’s annual debt payment. The DSCR is typically shown as a number followed by x.
DSCR Investment Loan - Eligibility
Income limits apply and may change based on geographical areas. A minimum credit score is required.
Your income limits depend on your geographical area. Some areas do not have income limits.
Applicant should have the bank specified credit score beginning at 640 +
The higher your DSCR, the more income you have to pay off your debt.
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