Great For Real Estate Investors

DSCR Mortgage Loan

DSCR Mortgage Loans (Debt Service Coverage Ratio Loans) are a specialized type of lending product designed with real estate investors in mind.


  • Focus on property income, not personal income
  • Suitable for investors with less traditional income sources
  • Can improve cash flow and potentially increase returns
  • Ideal for financing investment properties


  • Debt Service Coverage Ratio can be 0
  • Minimum 620 FICO
  • Minimum 20% down payment
  • The property being financed must generate income
  • Must currently own a primary residence

DSCR Mortgage Loans (Debt Service Coverage Ratio Loans) are a specialized type of lending product designed with real estate investors in mind. By focusing on the income generated by a property rather than the personal income of the borrower, DSCR mortgage loans provide a flexible financing option that can unlock new investment opportunities.


What is a DSCR Mortgage Loan?

DSCR, or Debt Service Coverage Ratio, is a calculation used by lenders to assess a borrower’s ability to cover their debt obligations. With a DSCR mortgage loan, the primary focus is not on your personal income but rather the income generated by the property being financed. This unique approach makes DSCR loans an attractive option for real estate investors​.

The DSCR ratio measures the cash flow available to pay current debt obligations. It’s calculated by dividing the net operating income by the total debt service. A DSCR of 0.75 means that there is enough income generated to cover the debt payments. Anything above 1.0 is a positive sign, indicating more income than needed to service the debt​, which means the property is more likely to break even or cashflow.

We have several investors that technically approve loans with No Debt Service Coverage Ratio, however the rate and minimum down payment required will be increased.

The best terms are for properties that cash-flow, meaning their Debt Service Coverage Ratio is greater than 1. But, even 0.75 and higher ratios have competitive rates and lower down payment requirements.


Core Benefits of a DSCR Loan

  • Income-based evaluation: The loan is mainly based on the income generated by the property, not your personal income, which allows for greater flexibility and potential access to credit for real estate investors.
  • Attractive to investors: Since these loans focus on property income, they are particularly suitable for rental or commercial properties that bring in regular income.
  • Flexibility: DSCR loans offer flexibility in loan approval, making them a desirable option for real estate investors with income-generating properties.
  • Potential for higher returns: Despite typically higher interest rates, many investors find DSCR loans attractive due to the potential for higher returns on investment properties​.


Eligibility Requirements for a DSCR Loan

To qualify for a DSCR loan, there are several key requirements you need to meet​:

  • Income-Generating Property: The property you’re looking to finance must be income-generating, such as a rental or commercial property.
  • Positive DSCR Ratio: The DSCR ratio, calculated by dividing the net operating income by the total debt service, must typically be 1.0 or higher. A higher ratio is viewed favorably by lenders as it indicates a lower risk of default.
  • Good Credit History: While the specific credit score required can vary between lenders, a good credit score is generally necessary. Investors will accept credit to the low 600s.
  • Down Payment: The exact amount can vary, but lenders generally require a down payment of at least 20% of the property’s purchase price.

While we have provided a general overview of DSCR mortgage loans and their benefits, the specific interest rates and potential lenders for DSCR loans are factors that would require additional investigation. If you’re considering a DSCR loan, it’s important to consult with a JVM mortgage expert to review your options and see specific loan scenarios.


Why DSCR Loans are Ideal for Real Estate Investors

Real estate investors often face unique challenges when it comes to securing financing. Their income might not come from traditional sources, and they may have a significant amount of their wealth tied up in real estate rather than liquid assets. That’s where DSCR loans can make a significant difference.


Unlike traditional loans that focus on the borrower’s personal income, DSCR loans consider the income generated by the property. This focus on property income makes DSCR loans particularly suitable for real estate investors whose primary source of income is their investment properties.

Flexible Eligibility

Real estate investors sometimes struggle to meet the strict income and employment verification requirements of traditional loans. With DSCR mortgage loans, the property’s income is the primary eligibility factor, providing greater flexibility for real estate investors.

Improved Cash Flow

DSCR mortgage loans can help improve cash flow by providing financing based on the income-producing capacity of the property, potentially increasing returns on investment properties.

Ideal for Investment Properties

DSCR loans are specifically designed for income-generating properties, making them an excellent fit for real estate investors looking to finance rental or commercial properties.

No Personal Income Verification

The application process for DSCR loans is often simpler than that of traditional loans because it doesn’t require personal income verification. This feature can be particularly advantageous for real estate investors with non-traditional income sources.


By focusing on the income generated by the property rather than the borrower’s personal income, DSCR loans offer a unique and flexible financing option tailored to the needs of real estate investors. Whether you’re an experienced investor or just starting out, DSCR loans could be the key to unlocking your next investment opportunity.


DSCR Mortgage Loans Nationwide with JVM Lending

At JVM Lending, we’re proud to provide DSCR mortgage loans to real estate investors across the country. We understand the unique needs of real estate investors, and our experienced team is ready to help you unlock your investing potential with our DSCR loan program.

We currently offer DSCR mortgage loans in the following states:

  • Alabama*
  • Alaska*
  • Arizona
  • Arkansas*
  • California
  • Colorado*
  • Connecticut*
  • Delaware*
  • Florida
  • Georgia*
  • Hawaii*
  • Idaho
  • Illinois*
  • Indiana*
  • Iowa*
  • Kansas*
  • Kentucky*
  • Louisiana*
  • Maine*
  • Maryland*
  • Massachusetts
  • Michigan*
  • Mississippi*
  • Missouri*
  • Montana*
  • Nebraska*
  • New Hampshire*
  • New Jersey*
  • New Mexico*
  • New York*
  • North Carolina*
  • Ohio*
  • Oklahoma*
  • Pennsylvania*
  • Rhode Island*
  • South Carolina*
  • Tennessee
  • Texas
  • Washington*
  • West Virginia*
  • Wisconsin*
  • Wyoming*

Unfortunately, we currently do NOT offer DSCR loans in the following areas: Minnesota, North Dakota, Nevada, Oregon, Puerto Rico, South Dakota, Utah, Virginia, and Vermont.

No matter where you’re located, JVM Lending is committed to helping you achieve your real estate investing goals. Contact our expert team today to learn more about our DSCR mortgage loans and how we can help you finance your next investment property.

*For home purchases in this state using DSCR financing with JVM Lending, the property must be purchased in an LLC. For additional information, please contact JVM Lending or call (855) 855-4491.


Take the Next Step with JVM Lending

Our team at JVM Lending is here to guide you every step of the way. Start your JVM loan application online or contact us today to discuss your home investment goals and learn more about how DSCR loans could be the key to unlocking your real estate investment dreams.

If you are a real estate investor, you can learn more about JVM Lending’s investment financing options here.


If you’d like to get in touch with a JVM expert directly, please contact Victor Flynn at [email protected] or call (925) 478-2969


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