Pwr TPO

DSCR lending explained and why it's one of the most important tools in your broker toolkit right now.

DSCR stands for Debt Service Coverage Ratio. The formula is simple:

Gross Monthly Rental Income ÷ PITIA (principal, interest, taxes, insurance, HOA) = DSCR

A ratio of 1.0 means the property breaks even. Above 1.0 means positive cash flow. That number, not your client's W-2, not their adjusted gross income, not their employment history 👉 is how the loan qualifies.

Here's who this product is built for:

✅ The investor whose tax strategy suppresses their reported income
✅ The portfolio builder who's hit the Fannie Mae 10-property limit
✅ The short-term rental operator without traditional lease agreements
✅ The first-time investor who's strong financially but doesn't have rental history

🚫 What DSCR is not- it isn't a bridge loan, a hard money product, or a short-term workaround. It's permanent, long-term financing built for investors who want to own rental properties as a wealth-building strategy.

Your clients are building portfolios. We built the programs to help you close those deals.

Read more on PWR Wire 👉 https://www.pwrtpo.com/blog

Contact your AE to discuss current program guidelines.