DSCR, or Debt Service Coverage Ratio, is a key metric used in real estate financing to measure a property's ability to cover its debt obligations. It’s calculated by dividing the property's net operating income by its total debt service. A DSCR greater than 1 indicates that the property generates more income than is needed to pay its debts, making it a safer investment for lenders. At Maverick Lending Solutions, we use DSCR to ensure that our clients receive the most reliable and secure financing options tailored to their investment goals.

Risk Management: Helps assess the financial health of the investment.

Loan Qualification: Essential for determining loan eligibility and terms.

Investor Confidence: A higher DSCR signifies a lower risk, attracting better financing opportunities.

At Maverick Lending Solutions, we use DSCR to tailor our loan offerings to meet your specific needs. Whether you're looking for a rental portfolio loan or a stabilized bridge loan, a solid DSCR ensures you receive financing that aligns with your investment strategy, providing both security and flexibility.

A DSCR of 1.2x or higher is generally considered good, indicating that the property generates 20% more income than needed to cover debt payments. Some loans may require a minimum DSCR of 1.10x to qualify, but the higher the DSCR, the better the loan terms you may receive.

Yes, you can improve your DSCR by increasing your property's income, reducing operating expenses, or restructuring existing debt to lower monthly payments. Strategies such as raising rents, improving property management efficiency, or refinancing existing loans can help achieve a better DSCR.