What Is DSCR Investment and Why It Matters?
DSCR Investment Loans Guide: A DSCR investment loan is one of the easiest ways for real estate investors to qualify for financing using rental income instead of personal income. Many investors prefer it because they focus on the property’s cash flow, making approval faster and simpler. At Kahn Home Loan, we help investors use DSCR investment options to grow their rental portfolios with confidence.
How DSCR Investment Loans Work
It’s evaluates the property using the Debt Service Coverage Ratio (DSCR). This ratio shows whether the rental income can cover the mortgage.
DSCR Formula
DSCR = Net Operating Income (NOI) ÷ Total Mortgage Payments
DSCR over 1.0 → Positive cash flow
DSCR 1.0 → Break-even
DSCR below 1.0 → Insufficient income
Benefits of DSCR Investment Loans
It’s offers benefits that traditional loans do not.
Top Advantages
No income verification
No tax returns needed
Fast approval
Ideal for long-term & short-term rentals
Works for both new & experienced investors
Why DSCR Investment Loans Are Popular
It is financing focuses on property performance, not borrower income.
This makes DSCR investment loans great for:
Self-employed borrowers
Real estate investors
Airbnb & short-term rental owners
Investors expanding portfolios
DSCR Investment Loan Requirements
While flexible, it’s lenders usually require:
Basic Requirements
DSCR: 1.0–1.25+
Credit score: 620+
20–25% down payment
Rental income documentation
Property appraisal
👉Check rental demand in your area: https://www.zillow.com/research/
Best Properties for DSCR Investment Loans
It’s work for many property types.
Eligible Property Types
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Single-family rentals
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Duplex, triplex, fourplex
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Condos and townhomes
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Airbnb / vacation rentals
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Small apartment buildings
How to Improve DSCR for Better DSCR Investment Approval
Improving your DSCR helps you get better DSCR investment loan terms.
Tips to Improve DSCR
Raise rental income
Reduce maintenance expenses
Buy in high-demand rental markets
Improve property features
Choose strong cash-flow properties
DSCR Investment Loan Process at Kahn Home Loan
At Kahn Home Loan, we make it financing simple.
Our 4-Step DSCR Loan Process
Review rental income
Calculate DSCR
Approve property documents
Fast underwriting & funding
Is a DSCR Investment Loan Right for You?
It is ideal if you want:
Fast approval
No income verification
Easy qualification
Rental-based financing
Portfolio expansion
If your income is complex or you own multiple properties, DSCR investment loans can be a perfect solution.
📞 Get Expert DSCR Investment Loan Assistance
Kahn Home Loan is here to help you:
📞 Call us: +1 562-331-8994
📍 Location: Montebello, CA
🌐 Visit: www.khanhomeloan.com