If you are a real estate investor — or someone looking to become one — you already know that building wealth through property requires the right tools, the right knowledge, and the right lending partner. One of the most powerful and flexible mortgage products available to investors today is the DSCR Loan, and Garden City Mortgage Team is here to make sure you understand exactly how it works, whether it’s the right fit for you, and how to use it to your fullest advantage.
Investing in real estate has long been one of the most reliable ways to build long-term wealth. But traditional mortgage products aren’t always designed with investors in mind. Products like Conventional Loans and FHA Loans are typically structured around the borrower’s personal income — meaning your W-2s, tax returns, and employment history are front and center. For investors who may have complex income structures, multiple properties, or income that doesn’t fit neatly into a traditional box, this can create unnecessary roadblocks.
That’s exactly where DSCR Loans step in. DSCR Loans evaluate your eligibility based on the income the property itself generates — not your personal income. This makes them one of the most investor-friendly mortgage products on the market, and one of the most popular products we work with here at Garden City Mortgage Team.
Let’s dive into everything you need to know.
DSCR stands for Debt Service Coverage Ratio. It is a simple financial metric that compares the income a property generates to the debt obligations associated with owning that property. In plain terms, a DSCR Loan lets the lender look at how much money your investment property brings in — through rent, for example — and compare that to how much it costs to own and maintain it, including your mortgage payment.
Here’s how the math works: If your rental property brings in $2,500 per month in rent, and your total monthly debt obligations on that property — including your mortgage, insurance, taxes, and any HOA fees — come to $2,000, your DSCR would be 1.25. That means the property earns 25% more than it costs to own. Most DSCR Loan programs require a ratio of 1.0 or higher, meaning the property at minimum breaks even — though a higher DSCR is always more favorable.
What makes DSCR Loans so attractive to investors is the simplicity of the qualification process. Because the lender is focused on the property’s income rather than yours, you don’t need to provide pay stubs, W-2s, or detailed personal tax returns. This makes DSCR Loans an excellent option for investors who are self-employed, have irregular income, own multiple properties, or simply prefer to keep their personal and investment finances separate.
DSCR Loans are specifically designed with real estate investors in mind, but the range of people who can benefit from them is broader than you might think. Here are some of the most common borrowers who turn to DSCR Loans:
First-Time Investors – If you’re just getting started in real estate investing and you’ve found a property with strong rental potential, a DSCR Loan can help you get into the game without the traditional income verification headaches. It’s a fantastic entry point into the investment world.
Seasoned Portfolio Investors – If you already own several investment properties and are looking to add more to your portfolio, DSCR Loans allow you to keep expanding without your personal income becoming a bottleneck in the qualification process.
Self-Employed Business Owners – If you run your own business and your personal tax returns don’t tell the full story of your financial health, a DSCR Loan lets the property do the talking. This pairs especially well with Bank Statement Loans, which also cater to self-employed borrowers but serve a different purpose.
Freelancers and Contractors – People with variable or non-traditional income streams can find it difficult to qualify for standard investment property loans. DSCR Loans remove that barrier entirely by focusing on the property’s performance rather than yours.
Short-Term and Long-Term Rental Investors – Whether you’re investing in a long-term rental property or a short-term vacation rental, DSCR Loans can work for both — as long as the property demonstrates strong income potential.
Investors Looking to Refinance – If you already own an investment property and want to refinance for better terms or to pull out equity, a DSCR Loan can be an excellent option, especially if your personal income situation has changed since you originally purchased the property.
Understanding where DSCR Loans fit among the other mortgage options available is key to making the right decision for your investment goals. Here’s how they stack up against some of the other products we offer at Garden City Mortgage Team:
DSCR Loans vs. Conventional Loans – Conventional Loans are versatile and widely used, but they heavily rely on your personal income and employment history for qualification. DSCR Loans shift that focus entirely to the property’s income, making them far more suitable for investment properties and investors with complex financial profiles.
DSCR Loans vs. FHA Loans – FHA Loans are government-backed and designed primarily for owner-occupied, primary residence purchases. They are not typically available for investment properties. If you’re looking to finance a rental property, a DSCR Loan is almost always a better fit than an FHA Loan.
DSCR Loans vs. VA Loans – VA Loans are an outstanding benefit for eligible veterans and military members, but like FHA Loans, they are intended for primary residences. For investment property purchases, DSCR Loans are the go-to product — though a veteran investor may use a VA Loan for their personal home and a DSCR Loan for their investment properties side by side.
DSCR Loans vs. Bank Statement Loans – Both products are popular with self-employed individuals, but they serve different purposes. Bank Statement Loans are typically used for primary residence purchases where the borrower proves income through bank deposits. DSCR Loans, on the other hand, are focused on investment properties and use the property’s rental income as the qualifying factor.
DSCR Loans vs. Bridge Loans – Bridge Loans are short-term financing tools designed to help buyers transition between properties quickly. Some investors use Bridge Loans to acquire a property fast and then refinance into a DSCR Loan once the property is stabilized and generating consistent rental income. The two products can work together beautifully as part of a larger investment strategy.
DSCR Loans vs. Jumbo Loans – Jumbo Loans are used for properties that exceed conventional loan limits, and they can be used for both primary residences and investment properties. However, Jumbo Loans still rely heavily on personal income for qualification. For high-value investment properties, a DSCR Loan may offer more flexibility in the qualification process.
DSCR Loans vs. HELOC Loans – A HELOC Loan lets you borrow against the equity in a property you already own. Some investors use a HELOC on one property to fund the down payment on another. A DSCR Loan, however, is a standalone mortgage product designed specifically to finance investment properties based on their income potential — a fundamentally different approach.
DSCR Loans vs. USDA Loans – USDA Loans are designed for buyers purchasing in rural or eligible suburban areas and are intended for primary residences. They are not available for investment properties. If you’re looking to invest in a rural rental property, a DSCR Loan would be the appropriate product.
DSCR Loans and Down Payment Assistance – Down Payment Assistance programs are typically designed for first-time homebuyers purchasing a primary residence. While they generally don’t apply to investment property purchases, understanding the full landscape of mortgage products — including Down Payment Assistance — helps investors make well-informed decisions about how to allocate their finances across all of their real estate goals.
While every lender sets its own criteria, here are the general requirements you can expect when applying for a DSCR Loan through Garden City Mortgage Team:
A Strong DSCR Ratio – As mentioned earlier, most lenders require a DSCR of at least 1.0, meaning the property’s income meets or exceeds its debt obligations. A DSCR of 1.25 or higher is often preferred and can lead to better loan terms.
A Solid Credit Score – A healthy credit score strengthens any loan application, and DSCR Loans are no exception. Most programs look for a minimum score of 620 to 680, though this can vary depending on the lender and the specific program.
A Meaningful Down Payment – DSCR Loans typically require a down payment of 20% to 25% or more. This is standard for investment property financing and helps protect both the lender and the investor.
Property Appraisal – The property will need to be professionally appraised to determine its market value and confirm its rental income potential. This is an essential step in the DSCR Loan process.
Proof of Rental Income or Market Rent Analysis – The lender will want to see evidence that the property can generate the income needed to meet the DSCR requirement. This might come in the form of existing lease agreements, a professional rent analysis, or comparable rental data from the local market.
Reserves – Many DSCR Loan programs require the borrower to have a certain number of months of mortgage payments held in reserve. This provides a safety net in case the property experiences a vacancy or unexpected expenses.
Like any mortgage product, DSCR Loans come with their own set of costs. Interest rates on DSCR Loans tend to be slightly higher than those on traditional owner-occupied loans like Conventional Loans or FHA Loans — typically by 0.5% to 1.5% or more. This reflects the slightly higher risk that lenders associate with investment properties.
Additional costs may include origination fees, appraisal fees, and closing costs. At Garden City Mortgage Team, we are always transparent about every cost involved. You will never be surprised by hidden fees or unexpected charges. We lay everything out clearly from day one so you can make a fully informed decision.
Despite the slightly elevated rates, DSCR Loans offer tremendous value for investors. The ability to qualify based on property income rather than personal income, the flexibility they provide, and the speed with which they can be processed make them one of the most cost-effective tools in a real estate investor’s arsenal.
We know that investment property financing can feel complex. That’s why we’ve designed our DSCR Loan process to be as clear, efficient, and stress-free as possible. Here’s what to expect:
Step 1: Initial Consultation – It begins with a conversation. One of our experienced loan officers will sit down with you to discuss your investment goals, the property you’re interested in, and whether a DSCR Loan is the best fit. We may also explore other products — like Bridge Loans or Jumbo Loans — depending on your situation.
Step 2: Property Identification and Analysis – If you haven’t already found a property, we can help you understand what kind of property would qualify for a DSCR Loan based on current market conditions. If you’ve already identified a property, we’ll begin analyzing its income potential right away.
Step 3: Documentation and Application – We’ll collect the necessary paperwork — including property information, rental income documentation, financial statements, and identification. The process is streamlined and designed to minimize hassle on your end.
Step 4: Appraisal and Underwriting – The property will be appraised, and our underwriting team will carefully review every aspect of your application to ensure a smooth path to approval.
Step 5: Approval and Closing – Once approved, we guide you through the closing process with care and precision. Before you know it, you’ll be the proud owner of a new investment property — and a new stream of income.
Choosing the right lender for an investment property loan is one of the most important decisions you’ll make as a real estate investor. At Garden City Mortgage Team, we bring deep expertise in DSCR Loans and a genuine passion for helping investors succeed.
We work with a wide range of mortgage products every single day — including Conventional Loans, FHA Loans, VA Loans, USDA Loans, Jumbo Loans, Bank Statement Loans, Bridge Loans, HELOC Loans, and Down Payment Assistance programs. That breadth of experience means we don’t just see your investment property in isolation — we see your full financial picture and help you build a strategy that works.
We also understand that investors value speed, flexibility, and efficiency. DSCR Loans are designed to deliver all three, and our team is built to match that energy. From your first consultation to closing day, Garden City Mortgage Team is in your corner — every single step of the way.
Sure! Here is your full DSCR Loans service page content, following the same layout and structure, with all keywords and contact details included:
If you are a real estate investor — or someone looking to become one — you already know that building wealth through property requires the right tools, the right knowledge, and the right lending partner. One of the most powerful and flexible mortgage products available to investors today is the DSCR Loan, and Garden City Mortgage Team is here to make sure you understand exactly how it works, whether it’s the right fit for you, and how to use it to your fullest advantage.
Investing in real estate has long been one of the most reliable ways to build long-term wealth. But traditional mortgage products aren’t always designed with investors in mind. Products like Conventional Loans and FHA Loans are typically structured around the borrower’s personal income — meaning your W-2s, tax returns, and employment history are front and center. For investors who may have complex income structures, multiple properties, or income that doesn’t fit neatly into a traditional box, this can create unnecessary roadblocks.
That’s exactly where DSCR Loans step in. DSCR Loans evaluate your eligibility based on the income the property itself generates — not your personal income. This makes them one of the most investor-friendly mortgage products on the market, and one of the most popular products we work with here at Garden City Mortgage Team.
Let’s dive into everything you need to know.
DSCR stands for Debt Service Coverage Ratio. It is a simple financial metric that compares the income a property generates to the debt obligations associated with owning that property. In plain terms, a DSCR Loan lets the lender look at how much money your investment property brings in — through rent, for example — and compare that to how much it costs to own and maintain it, including your mortgage payment.
Here’s how the math works: If your rental property brings in $2,500 per month in rent, and your total monthly debt obligations on that property — including your mortgage, insurance, taxes, and any HOA fees — come to $2,000, your DSCR would be 1.25. That means the property earns 25% more than it costs to own. Most DSCR Loan programs require a ratio of 1.0 or higher, meaning the property at minimum breaks even — though a higher DSCR is always more favorable.
What makes DSCR Loans so attractive to investors is the simplicity of the qualification process. Because the lender is focused on the property’s income rather than yours, you don’t need to provide pay stubs, W-2s, or detailed personal tax returns. This makes DSCR Loans an excellent option for investors who are self-employed, have irregular income, own multiple properties, or simply prefer to keep their personal and investment finances separate.
DSCR Loans are specifically designed with real estate investors in mind, but the range of people who can benefit from them is broader than you might think. Here are some of the most common borrowers who turn to DSCR Loans:
First-Time Investors – If you’re just getting started in real estate investing and you’ve found a property with strong rental potential, a DSCR Loan can help you get into the game without the traditional income verification headaches. It’s a fantastic entry point into the investment world.
Seasoned Portfolio Investors – If you already own several investment properties and are looking to add more to your portfolio, DSCR Loans allow you to keep expanding without your personal income becoming a bottleneck in the qualification process.
Self-Employed Business Owners – If you run your own business and your personal tax returns don’t tell the full story of your financial health, a DSCR Loan lets the property do the talking. This pairs especially well with Bank Statement Loans, which also cater to self-employed borrowers but serve a different purpose.
Freelancers and Contractors – People with variable or non-traditional income streams can find it difficult to qualify for standard investment property loans. DSCR Loans remove that barrier entirely by focusing on the property’s performance rather than yours.
Short-Term and Long-Term Rental Investors – Whether you’re investing in a long-term rental property or a short-term vacation rental, DSCR Loans can work for both — as long as the property demonstrates strong income potential.
Investors Looking to Refinance – If you already own an investment property and want to refinance for better terms or to pull out equity, a DSCR Loan can be an excellent option, especially if your personal income situation has changed since you originally purchased the property.
Understanding where DSCR Loans fit among the other mortgage options available is key to making the right decision for your investment goals. Here’s how they stack up against some of the other products we offer at Garden City Mortgage Team:
DSCR Loans vs. Conventional Loans – Conventional Loans are versatile and widely used, but they heavily rely on your personal income and employment history for qualification. DSCR Loans shift that focus entirely to the property’s income, making them far more suitable for investment properties and investors with complex financial profiles.
DSCR Loans vs. FHA Loans – FHA Loans are government-backed and designed primarily for owner-occupied, primary residence purchases. They are not typically available for investment properties. If you’re looking to finance a rental property, a DSCR Loan is almost always a better fit than an FHA Loan.
DSCR Loans vs. VA Loans – VA Loans are an outstanding benefit for eligible veterans and military members, but like FHA Loans, they are intended for primary residences. For investment property purchases, DSCR Loans are the go-to product — though a veteran investor may use a VA Loan for their personal home and a DSCR Loan for their investment properties side by side.
DSCR Loans vs. Bank Statement Loans – Both products are popular with self-employed individuals, but they serve different purposes. Bank Statement Loans are typically used for primary residence purchases where the borrower proves income through bank deposits. DSCR Loans, on the other hand, are focused on investment properties and use the property’s rental income as the qualifying factor.
DSCR Loans vs. Bridge Loans – Bridge Loans are short-term financing tools designed to help buyers transition between properties quickly. Some investors use Bridge Loans to acquire a property fast and then refinance into a DSCR Loan once the property is stabilized and generating consistent rental income. The two products can work together beautifully as part of a larger investment strategy.
DSCR Loans vs. Jumbo Loans – Jumbo Loans are used for properties that exceed conventional loan limits, and they can be used for both primary residences and investment properties. However, Jumbo Loans still rely heavily on personal income for qualification. For high-value investment properties, a DSCR Loan may offer more flexibility in the qualification process.
DSCR Loans vs. HELOC Loans – A HELOC Loan lets you borrow against the equity in a property you already own. Some investors use a HELOC on one property to fund the down payment on another. A DSCR Loan, however, is a standalone mortgage product designed specifically to finance investment properties based on their income potential — a fundamentally different approach.
DSCR Loans vs. USDA Loans – USDA Loans are designed for buyers purchasing in rural or eligible suburban areas and are intended for primary residences. They are not available for investment properties. If you’re looking to invest in a rural rental property, a DSCR Loan would be the appropriate product.
DSCR Loans and Down Payment Assistance – Down Payment Assistance programs are typically designed for first-time homebuyers purchasing a primary residence. While they generally don’t apply to investment property purchases, understanding the full landscape of mortgage products — including Down Payment Assistance — helps investors make well-informed decisions about how to allocate their finances across all of their real estate goals.
While every lender sets its own criteria, here are the general requirements you can expect when applying for a DSCR Loan through Garden City Mortgage Team:
A Strong DSCR Ratio – As mentioned earlier, most lenders require a DSCR of at least 1.0, meaning the property’s income meets or exceeds its debt obligations. A DSCR of 1.25 or higher is often preferred and can lead to better loan terms.
A Solid Credit Score – A healthy credit score strengthens any loan application, and DSCR Loans are no exception. Most programs look for a minimum score of 620 to 680, though this can vary depending on the lender and the specific program.
A Meaningful Down Payment – DSCR Loans typically require a down payment of 20% to 25% or more. This is standard for investment property financing and helps protect both the lender and the investor.
Property Appraisal – The property will need to be professionally appraised to determine its market value and confirm its rental income potential. This is an essential step in the DSCR Loan process.
Proof of Rental Income or Market Rent Analysis – The lender will want to see evidence that the property can generate the income needed to meet the DSCR requirement. This might come in the form of existing lease agreements, a professional rent analysis, or comparable rental data from the local market.
Reserves – Many DSCR Loan programs require the borrower to have a certain number of months of mortgage payments held in reserve. This provides a safety net in case the property experiences a vacancy or unexpected expenses.
Like any mortgage product, DSCR Loans come with their own set of costs. Interest rates on DSCR Loans tend to be slightly higher than those on traditional owner-occupied loans like Conventional Loans or FHA Loans — typically by 0.5% to 1.5% or more. This reflects the slightly higher risk that lenders associate with investment properties.
Additional costs may include origination fees, appraisal fees, and closing costs. At Garden City Mortgage Team, we are always transparent about every cost involved. You will never be surprised by hidden fees or unexpected charges. We lay everything out clearly from day one so you can make a fully informed decision.
Despite the slightly elevated rates, DSCR Loans offer tremendous value for investors. The ability to qualify based on property income rather than personal income, the flexibility they provide, and the speed with which they can be processed make them one of the most cost-effective tools in a real estate investor’s arsenal.
We know that investment property financing can feel complex. That’s why we’ve designed our DSCR Loan process to be as clear, efficient, and stress-free as possible. Here’s what to expect:
Step 1: Initial Consultation – It begins with a conversation. One of our experienced loan officers will sit down with you to discuss your investment goals, the property you’re interested in, and whether a DSCR Loan is the best fit. We may also explore other products — like Bridge Loans or Jumbo Loans — depending on your situation.
Step 2: Property Identification and Analysis – If you haven’t already found a property, we can help you understand what kind of property would qualify for a DSCR Loan based on current market conditions. If you’ve already identified a property, we’ll begin analyzing its income potential right away.
Step 3: Documentation and Application – We’ll collect the necessary paperwork — including property information, rental income documentation, financial statements, and identification. The process is streamlined and designed to minimize hassle on your end.
Step 4: Appraisal and Underwriting – The property will be appraised, and our underwriting team will carefully review every aspect of your application to ensure a smooth path to approval.
Step 5: Approval and Closing – Once approved, we guide you through the closing process with care and precision. Before you know it, you’ll be the proud owner of a new investment property — and a new stream of income.
Choosing the right lender for an investment property loan is one of the most important decisions you’ll make as a real estate investor. At Garden City Mortgage Team, we bring deep expertise in DSCR Loans and a genuine passion for helping investors succeed.
We work with a wide range of mortgage products every single day — including Conventional Loans, FHA Loans, VA Loans, USDA Loans, Jumbo Loans, Bank Statement Loans, Bridge Loans, HELOC Loans, and Down Payment Assistance programs. That breadth of experience means we don’t just see your investment property in isolation — we see your full financial picture and help you build a strategy that works.
We also understand that investors value speed, flexibility, and efficiency. DSCR Loans are designed to deliver all three, and our team is built to match that energy. From your first consultation to closing day, Garden City Mortgage Team is in your corner — every single step of the way.
Do I need to show personal income to qualify for a DSCR Loan? No. That is one of the biggest advantages of DSCR Loans. Qualification is based on the property’s income, not yours. This makes them ideal for self-employed individuals, investors with complex finances, and anyone whose personal income doesn’t tell the full story.
Can I use a DSCR Loan for a short-term rental property? Yes. Many DSCR Loan programs accept short-term rental income — such as vacation rentals — as qualifying income. However, the lender may require documentation or market analysis to verify the property’s earning potential.
What happens if my property sits vacant for a while? This is why most DSCR Loan programs require you to have reserves set aside — typically several months of mortgage payments. Having that financial cushion protects you during periods of vacancy and gives the lender confidence in your ability to manage the loan responsibly.
Can I refinance an existing investment property with a DSCR Loan? Absolutely. If you already own a rental property and want to refinance for better terms, access equity, or adjust your loan structure, a DSCR Loan can be an excellent option — especially if the property is performing well and generating strong rental income.
Is a DSCR Loan the same as a hard money loan? No. While both are used in real estate investing, they are very different products. Hard money loans are typically short-term, come with much higher interest rates, and are often used for fix-and-flip properties. DSCR Loans are longer-term, more traditionally structured mortgages designed for income-producing rental properties.
Real estate investing is one of the most rewarding paths to long-term financial freedom — and a DSCR Loan from Garden City Mortgage Team can help you get there faster, smarter, and with far less hassle than you might expect. Whether you’re buying your first rental property or adding another asset to a growing portfolio, we have the expertise, the products, and the passion to make it happen.
Don’t let complicated qualification processes or outdated lending rules slow down your investment goals. Reach out to Garden City Mortgage Team today. Your next great investment starts here.
We’d love to help you explore whether a DSCR Loan is the right fit for your investment goals. Don’t hesitate to get in touch — we’re here to help.
Business Name: Garden City Mortgage Team
Loan Officer: Shaun Utterson
Phone Number: 📞 (910) 444-9567
Email: ✉️ sutterson@emmloans.com
At Garden City Mortgage Team, we are committed to helping you move forward with confidence. Contact us today and let’s find the right solution for you.
With Shaun Utterson Mortgage Services, you gain a dedicated partner committed to guiding you through every step of the home financing process. I combine deep industry knowledge with personalized service, ensuring that each loan solution aligns with your unique goals and financial situation. Whether you are purchasing your first home, refinancing, or investing in property, I provide clear communication, expert advice, and a seamless experience from start to finish. My focus is on building trust, delivering competitive solutions, and empowering borrowers to make confident decisions.
Personalized Guidance: Tailored mortgage solutions designed to meet each borrower’s unique needs.
Transparent Communication: Clear, step-by-step guidance throughout the entire mortgage process.
Fast and Reliable Service: Efficient loan processing and responsive support to keep your timeline on track.
Trusted Relationships: Building long-term connections with clients through professionalism and integrity.
Choosing the right mortgage partner can make all the difference in your homeownership journey. At Rapid Closing, we combine speed, expertise, and personalized care to deliver financing solutions that are tailored to your goals. Whether you’re a first-time home buyer, refinancing, or exploring specialized programs, our team is dedicated to making the process smooth, transparent, and stress-free. With Rapid Closing, you’re not just getting a loan—you’re gaining a trusted partner who stands by you every step of the way.
Fast & Reliable Closings – Streamlined processes that save you time and stress.
Wide Range of Loan Programs – From FHA and VA to DSCR, Jumbo, and USDA loans.
Personalized Guidance – Clear, step-by-step support with dedicated loan specialists.
Flexible Solutions – Options designed for first-time buyers, investors, and unique situations.
Shaun Utterson
Mortgage Loan Originator
NMLS #2157825 | Company NMLS #2926
Corporate Address: 1950 Route 70 East, Suite 300, Cherry Hill, NJ 08003
Richard Thomas Ellis – Pilgrim Mortgage
Corporate Address: 8900 Business Park Dr. Austin, TX 78759
© 2025,Shaun Utterson, All Rights Reserved