What is a DSCR loan, and how does it work?

A DSCR or Debt Service Coverage Ratio loan is a type of real estate loan and the amount is determined based on the income, which it generates rather from the borrowers income. The DSCR is arrived at by only dividing the net operating income of a property with total amount of debt which needs to be paid. It is greater than 1, this means that the property generates sufficient income to offset the loan repayments hence making it among the major consideration when seeking for a loan.

Source: https://accountingbyte.com/dscr-loan-requirements/