Why DSCR Loans are the Hottest Investment Trend 

DSCR, ROI, PITI, OMG: Why DSCR Loans Are the Hottest Trend in Real Estate Investing

DSCR loans—short for Debt Service Coverage Ratio—are quickly becoming a go-to financing option for real estate investors. Traditionally, buying an investment property meant qualifying with your employment income to cover the investment loan in addition to any current mortgage payments you already had, such as the one on your primary residence. That made it tough for many would-be investors to get approved.

Now, the rules have changed.

A DSCR loan flips the script by qualifying borrowers based on the anticipated rental income of the property—not their job income. If the projected rent covers the mortgage payment (including taxes and insurance, aka PITI), the deal can move forward. Some lenders even offer flexibility if the rent doesn’t fully cover the payment.

The best part? No employment income is required.

To qualify, borrowers typically need a solid credit score, proof of assets, and a down payment—usually between 20–25%. Terms vary depending on the investor’s goals and financial profile.

These loans are available to domestic investors, foreign nationals, first-time buyers, and even those looking to finance multi-family properties. And because I’m with NEXA Mortgage, with access to over 260 lenders, I can match you with the right DSCR program for virtually any scenario.

DSCR loans have opened doors for new and seasoned investors alike, making real estate more accessible without traditional income verification hurdles.

If you have a client exploring real estate investment—or you're considering it yourself—reach out anytime. I'm happy to walk you through today’s best options and help you unlock long-term return on investment, or ROI.