Ask an Expert: What is a DSCR Mortgage?

Hello 10X – Here is my question:

Q:  I have recently heard about new types of mortgages called ‘DSCR Mortgages’.  Just what are these, and how do they work?

Thanks, Jon M, Dover NH

A:  Hi Jon,

DSCR loans are relatively new to the marketplace.  Many investors have asked me about these recently, and here at Bluewater Mortgage we offer these types of loans to our borrowers.

In a nutshell, these loan options allow an investor to get into the property based on the income potential of the property itself, and NOT dependent on the income of the borrower.  Typically we do not ask for W2’s, paystubs, or tax returns to qualify for these programs.  These programs do however have higher rates, so the deal must make sense.  However, these are great options for invstors with higher DTI ratios, or income which is difficult to prove.  Feel free to call me to discuss further if you’d like!

By Laura Gibb, Mortgage Broker & Contributing ‘Expert’ at 10X.

Email:  [email protected]