DSCR Loans

DSCR Loans – Smart Financing for Real Estate Investors

At Tony Fahim Mortgage, we understand that traditional mortgage options don’t always meet the needs of real estate investors. That’s why we offer DSCR Loans (Debt Service Coverage Ratio Loans)—a flexible and investor-friendly financing solution that focuses on property income rather than personal income. If you’re a real estate investor in New Jersey looking to grow your portfolio without the hassle of income verification, a DSCR loan may be the perfect fit.

What is a DSCR Loan?

A DSCR Loan is designed specifically for real estate investors who want to qualify based on the cash flow of the investment property, not their personal income. Instead of using tax returns, W-2s, or pay stubs to evaluate eligibility, DSCR loans assess whether the rental income generated by the property can cover the loan’s debt obligations.

The key metric used is the Debt Service Coverage Ratio (DSCR), calculated by dividing the property’s gross rental income by its mortgage payment (including principal, interest, taxes, and insurance). A DSCR of 1.0 or higher typically indicates the property generates enough income to cover the mortgage.

Who is a DSCR Loan For?

  • Real estate investors building or expanding rental portfolios

  • Self-employed borrowers or those with non-traditional income sources

  • Buy-and-hold investors seeking long-term rental income

  • Investors looking to qualify without personal income documentation

Whether you’re purchasing a single-family rental, a multi-unit building, or refinancing an existing investment, DSCR loans provide a streamlined path to financing based on the property’s performance—not your personal financials.

Key Benefits of DSCR Loans

✅ No Income or Employment Verification
Avoid the paperwork—no tax returns, W-2s, or employment checks required.

✅ Faster Approvals
With simplified documentation requirements, DSCR loans often close quicker than traditional mortgages.

✅ Flexible Property Types
Finance a wide range of investment properties, including single-family rentals, duplexes, triplexes, and multi-units.

✅ Competitive Loan Terms
Access to attractive interest rates and flexible repayment options tailored to your investment strategy.

✅ Grow Your Portfolio
DSCR loans make it easier to finance multiple properties, empowering investors to scale quickly.

DSCR Loan Requirements

While requirements may vary by lender, typical DSCR loan guidelines include:

  • Minimum DSCR Ratio: Usually 1.0 or higher

  • Down Payment: Often 20-25% (varies by property type and lender)

  • Credit Score: Minimum 620 (higher scores may qualify for better rates)

  • Property Type: Investment or rental properties only (not owner-occupied)

Why Choose Tony Fahim Mortgage for Your DSCR Loan?

At Tony Fahim Mortgage, we take pride in supporting New Jersey’s real estate investors with knowledgeable guidance, flexible loan options, and a personalized approach to lending. As part of Nexa Mortgage, we have access to a vast network of lenders offering competitive DSCR loan programs tailored to your unique goals.

When you work with Tony, you get:

  •  One-on-one guidance throughout the loan process

  •  Transparent communication with no hidden surprises

  •  Fast, efficient closings so you can move quickly

  •  Local market expertise and investor-friendly solutions

Start Building Your Investment Portfolio Today

If you’re ready to explore your investment property financing options, DSCR loans could be your key to unlocking long-term success. Contact Tony Fahim Mortgage today to learn more, get pre-qualified, or schedule a personalized consultation.