Financing Your Investment Property with DSCR Loans
At Contemporary Mortgage Services, we offer Debt Service Coverage Ratio (DSCR) mortgages designed for real estate investors. These loans focus on the property's income potential, making it easier for investors to secure financing based on the cash flow of the investment rather than personal income.
A DSCR investment purchase mortgage evaluates the income generated by an investment property to determine loan eligibility — providing a streamlined path to financing without traditional income verification requirements.
How DSCR Mortgages Work
The Debt Service Coverage Ratio measures a property's ability to cover its mortgage payments. It is calculated by dividing the property's net operating income by its total debt service:
A DSCR greater than 1 indicates the property generates enough income to cover its debt obligations — which is favorable for loan approval. This focus on property cash flow rather than personal income makes DSCR loans ideal for investors with multiple properties or complex income sources.
Benefits of a DSCR Mortgage
Property Income Qualifies
Qualification is based on the property's rental income — not your personal income or tax returns.
No Income Verification
Traditional income documentation is not required, significantly simplifying the application process.
Faster Approval
Less paperwork and a streamlined process means quicker approvals to act on investment opportunities.
Flexible Terms
Choose from various loan terms and structures to match your investment strategy.
Higher Loan Potential
Property cash flow focus can allow for higher loan amounts compared to traditional income-based loans.
Is a DSCR Mortgage Right for You?
A DSCR mortgage might be the right choice if you:
- Are a real estate investor looking to purchase or refinance investment properties
- Prefer loan qualification based on property income rather than personal income
- Have multiple investment properties or complex income sources
- Want a streamlined, hassle-free approval process
- Seek flexible loan terms tailored to your investment needs
Our DSCR Mortgage Options
Purchase Loans
Finance the acquisition of a new investment property based on its projected rental cash flow.
Refinance Loans
Refinance existing investment properties for better terms or to free up capital for more investments.
Cash-Out Refinance
Access equity in your investment property to fund further investments or other financial needs.
Interest-Only Loans
Lower initial payments by paying interest only for a set period, maximizing your monthly cash flow.
The Application Process
Securing a DSCR mortgage with Contemporary Mortgage Services is straightforward:
Consultation — Speak with one of our experienced Loan Originators to discuss your investment strategy and determine the best DSCR loan option for you.
Prequalification — Assess the property's cash flow and get prequalified to understand your borrowing potential.
Application — Complete the mortgage application with our team's guidance, ensuring all necessary property documentation is provided.
Approval — We'll process your application and, once approved, lock in your loan terms.
Closing — Sign the final documents and begin leveraging your DSCR mortgage to grow your investment portfolio.