A DSCR loan is an investment property mortgage where qualification is based on one number: the debt service coverage ratio. This ratio is calculated by dividing the property's gross monthly rental income by its total monthly debt obligation (principal, interest, taxes, insurance, and HOA if applicable).
A DSCR of 1.0 means the rent exactly covers the mortgage payment. A ratio of 1.25 means the property earns 25% more than it costs to carry. Most programs require a minimum ratio of 1.0 to 1.25.
No tax returns required. No W-2s. No paystubs. No personal income verification of any kind. If your CPA has minimized your taxable income, that doesn't count against you.
No portfolio limits. Conventional programs cap you at 10 financed properties. DSCR programs have no such limit. As long as each property cash-flows, you can keep scaling.
Short-term rental income accepted. Many DSCR programs now support Airbnb and VRBO income using market rent analysis. Connecticut's coastal and vacation markets make this particularly valuable.
DSCR loans are designed for real estate investors who want to scale without being constrained by personal income. This includes self-employed borrowers, investors past the conventional 10-property limit, high-income professionals with complex tax situations, first-time landlords with a strong property, and foreign national investors.
Credit score: Most programs start at 620-640, with better rates above 700. Down payment: Typically 20-25%. Reserves: Most programs require 6 months of PITIA in liquid assets. Property: Must be an investment property with verifiable rental income or a market rent appraisal.
AFC Mortgage Group specializes in DSCR lending for Connecticut and multi-state investors. Call (203) 452-9899 or get pre-approved online.
AFC Mortgage Group LLC | NMLS #2801 | Monroe, CT | Licensed in 17 States
Become homeowners. AFC Mortgage Group will help you navigate the loan process, secure financing, and purchase your dream home.
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