How does DSCR work?
If you apply for a traditional mortgage, you’re asked to document your
income. This can be complicated if you’re self-employed, own a
business, or have non-traditional income sources.
DSCR streamlines income qualification by using the cashflow of the
property. Here’s how we do it at Axos Bank.
We look at the current rent and an appraiser’s market
We calculate the expected net rent using whichever is
lower: actual rent or market rents.
The rent from the property will be divided by the proposed
new mortgage payment to calculate the DSCR for the
If the calculation exceeds the minimum
required by the investor guidelines for the loan, the
rent from the property will be used as the primary
source of repayment and qualification.
If the calculation doesn’t meet the minimum ratio required by the investor guideline for the loan, you
may qualify for our
no ratio option.