Rent is central to a landlord’s borrowing costs, especially when their property is financed with a debt-service coverage ratio (DSCR) loan. Understanding how DSCR works may offer renters leverage when ...

Debt Service Coverage Ratio The debt service coverage ratio, or DSCR, refers to how able a property is to service its debt based on its net income.

Should You Use a DSCR Loan for Your Rental Property? Debt service coverage ratio (DSCR) loans allow real estate investors to qualify for financing based on a property's projected rental income.

The debt is set to mature in January 2026. Debt-service coverage ratio dropped below breakeven levels in recent years, according to the loan servicer report, indicative of weakening cash flow.