What Is a DSCR Loan? Formula, Requirements and Examples
The debt service coverage ratio (DSCR) is net operating income divided by annual debt service, and a DSCR loan uses it to qualify investors on the property’s income instead of personal income. See the formula, a worked 1.45x example, ways to improve coverage, and CR Equity AI’s DSCR terms: 1.00x floor, no tax returns, and a typical close in 9–15 days.
Whose NOI Is It?
Borrower pro forma NOI can create unexpected loan proceeds gaps and late-stage retrades. This research examines independent NOI underwriting, data provenance, coverage ratios, and how lenders can identify the real cash flow of a property before issuing terms.