• Mortgage Rates and Federal Reserve

  DSCR Loans: What are the biggest risks investors should watch out for?

  Posted by Elmoustahyi Abdallah on November 4, 2026 at 9:22 pm

  DSCR (Debt Service Coverage Ratio) loans have become popular for investors because they focus on the property’s rental income rather than the borrower’s personal income. However, I’ve seen some investors get burned by ignoring the “what if” scenarios.

  For example, what if the property sits vacant for 2 months? Or what if the insurance premium jumps 30%? A DSCR of 1.25 might look safe on paper, but it can be tight in reality.

  For those who have used DSCR loans: what reserves did you keep? And how did you stress-test the numbers before committing?

  Elmoustahyi Abdallah replied 16 hours, 16 minutes ago 1 Member · 0 Replies

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