https://blog.cfcmtg.com/tags/investment-property/Recent content in Investment Property on Coastal Funding BlogHugoen-usWed, 21 Oct 2026 06:15:00 -0500https://blog.cfcmtg.com/posts/dscr-loan-guide/Wed, 21 Oct 2026 06:15:00 -0500https://blog.cfcmtg.com/posts/dscr-loan-guide/<p><strong>A DSCR loan is an investment-property mortgage that qualifies you mainly on the property&rsquo;s rental income instead of your personal income. Lenders divide the monthly rent by the monthly housing payment. If the rent covers the payment, you may qualify, even if your tax returns don&rsquo;t show a big salary.</strong></p> <h2 id="key-takeaways">Key Takeaways</h2> <ul> <li><strong>DSCR = monthly rent ÷ monthly PITIA</strong> (principal, interest, taxes, insurance, and HOA dues).</li> <li>A DSCR of <strong>1.0 or higher</strong> means the rent covers the payment. Many lenders look for that.</li> <li>DSCR loans are for <strong>investment properties only</strong>, not your primary home.</li> <li>They&rsquo;re popular with <strong>self-employed borrowers</strong> and investors who own several rentals.</li> <li>Coastal Funding Corporation offers <strong>DSCR loans nationwide</strong>.</li> </ul> <h2 id="what-is-a-dscr-loan">What Is a DSCR Loan?</h2> <p>Most home loans look at your <strong>debt-to-income ratio (DTI)</strong>. That means your pay stubs, W-2s, or tax returns. A DSCR loan flips that around. It asks one main question: <strong>Does this property pay for itself?</strong></p>