When a DSCR Loan is Not the Right Move

[Joseph Tubbs]

When a DSCR Loan is Not the Right Move

DSCR loans sound amazing... until they aren’t.
They don't care about your W-2, your DTI, or your side hustle. They care about one thing: property cash flow.

But here’s what I’ve seen trip people up:

• High rates (6.5%–8.5%+ currently)
• Often 25–30% down to make it debt-service well enough
• Can be hard to refinance out of if rates stay high

🎯 DSCR is a tool — not a shortcut.
Sometimes a good ol’ 15% down investor loan is better if the numbers still work.

Have you used DSCR recently? What was your rate and experience?