Debt Service Coverage Ratio Loan Program
A DSCR loan is a non-QM loan option available to real estate investors. At Philadelphia Mortgage Company we utilize the Debt Service Coverage Ratio (DSCR) to assess a borrower's eligibility for a loan. This metric helps determine the borrower's ability to repay the loan without the need for income verification. The DSCR ratio is calculated by analyzing the cash flow generated by the property to evaluate whether the borrower can meet the loan repayment requirements. It is calculated by dividing the property's net operating income (NOI) by its total debt service, which includes principal and interest payments.
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