If you want to buy a rental property but don’t meet the income requirements of a standard investment loan, you might think you don’t have any options. However, a DSCR mortgage allows your loan to be approved based on the income the property will create.

Debt service coverage ratio (DSCR) mortgages allow property investors an easier path to buy rental properties. They can offer more flexibility over the types of homes that can qualify to be financed using this type of mortgage.

Without the need to worry about your debt-to-income ratio or provide documents to prove your earnings, a DSCR loan can be approved faster. If you want to buy multiple properties to grow your portfolio, DSCR loans make this possible as well.

Though with all of these advantages, there have to be some downsides. Before choosing this type of loan, you need to be aware of how they work and what the costs will be. We look at the things you need to know about a DSCR mortgage if you are planning to invest in property.