A DSCR loan (Debt Service Coverage Ratio loan) is a type of non-qualified mortgage (non-QM) designed for real estate investors, where loan eligibility is based on the cash flow generated by the property rather than the borrower's personal income or credit score. The DSCR is a financial metric calculated by dividing the property’s net operating income (NOI) (typically annual rental income minus operating expenses) by the annual debt service (mortgage payments, including principal, interest, taxes, and insurance).
For example: If your rental rate is $1200 a month and your expenses are $1000 a month you will take$1200 and divide it by $1000 giving you a 1.2 DSCR. 1.2 DSCR or better will give investors the best rate.
Unlike a traditional bank loan, our DCCR loans are fixed and are not readjusted every 3-5 years helping you to have stable cash flow each and every month.
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Term: 30 Year Fixed
Rates: Competitive with traditional banks
Debt Service Coverage Ratio: 1.2X minimum preferable, capable of 1.0X refinances
Appraisal Required: Yes
Minimum appraised value: $100,000
Minimum loan amount: $75,000
Rental Requirements: Best if property is already rented
Seasoning: Must have owned the property for a minimum of 3 months prior to refinancing
Perfect loan to use with the BRRR Strategy
Cash Out Option: Yes, up to 75% of the appraised value
Portfolio: Yes
With steady job growth, strong student housing demand from Texas Tech, and a stable cost of living, Lubbock is one of Texas’s most underrated rental markets. Whether you're buying your first unit or your fiftieth, DSCR loans help you grow without personal income limits.
Take control of your real estate investments with a DSCR loan. Acquire, refinance, or cash out to build wealth through rental properties.
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Don’t let slow banks or red tape hold you back. Partner with experts who understand your goals and the Lubbock real estate market.
