A DSCR loan is a type of investment property mortgage that qualifies you based on the property’s rental income instead of your personal income. Lenders calculate a Debt Service Coverage Ratio — rental income divided by the property’s mortgage payment — to determine eligibility.
No. DSCR loans don’t require tax returns, W-2s, or employment verification. Qualification is based on the subject property’s rental income relative to its expected mortgage payment.
Yes. DSCR loans are commonly used for short-term rental properties in the Smokies, and lenders can use short-term rental income projections — rather than standard long-term lease comps — to calculate the qualifying ratio.
No. DSCR loans are typically 30-year fixed or adjustable investment mortgages with market-competitive rates, unlike short-term, higher-cost hard money loans.