u/CrestmarkDSCR

DSCR loans are designed for real estate investors and are typically qualified based on the property's cash flow rather than the borrower’s personal income.

Instead of focusing heavily on tax returns or debt-to-income ratios, many DSCR lenders look at whether the property's rental income can support the monthly housing payment.

Common beginner questions include:

• What does DSCR stand for?
• How is DSCR calculated?
• Do DSCR loans require tax returns?
• Can you use LLC ownership?
• Are short-term rentals eligible?
• What credit scores are typically required?
• How much down payment is needed?
• Can investors do cash-out refinances with DSCR loans?

This thread is for beginner DSCR questions, terminology, lender differences, and investor experiences.

What was the most confusing part of learning about DSCR financing when you first started?