Reviewed by Kladi Bejkolli Mortgage Loan Officer, NMLS #1626841 Updated September 27, 2026
A DSCR loan is an investor mortgage underwritten on the property's debt service coverage ratio rather than your personal W-2 income. The lender compares the rent the property can produce with the mortgage payment; a ratio above 1.0 means the rent covers the payment. DSCR programs vary by lender and state, so Kladi will confirm whether one fits your scenario.
Debt service coverage ratio is expected rent divided by the total mortgage payment. A ratio of 1.2 means the rental income covers the payment with room to spare. Lenders like to see the property carrying itself, which is why DSCR loans qualify on the asset rather than your paycheck.
Investors who want to keep personal income out of the approval picture, or whose income is hard to document in a traditional way, are the typical fit. It is an investor tool, not a primary-residence program.
Expected rent, property condition, your credit profile, and the equity you bring. Because the property does the qualifying, the numbers on the property matter more than your salary.
DSCR products are not available everywhere, and terms move with the market. Kladi will confirm whether a DSCR option is offered for your property and your state, and stack it against the alternatives before you decide.
General education only: not a quote, an offer of credit, or a promise of approval. Programs and guidelines vary by state, product, and borrower profile. Confirm your situation with Kladi directly.
Kladi will confirm what applies to the state your property is in and lay out your realistic options with the tradeoffs visible.
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