A DSCR (Debt Service Coverage Ratio) loan for rental properties from VP Capital Lending is a financing option tailored for real estate investors seeking to purchase or refinance income-generating properties. This type of loan focuses on the property's ability to generate enough income to cover its debt obligations, rather than the borrower's personal income or credit score. The DSCR is calculated by dividing the property's net operating income (NOI) by its total debt service (the required debt payments). Lenders typically require a DSCR of 1.2 or higher, meaning the property should generate at least 20% more income than necessary to cover its debt payments. This approach benefits investors by allowing the property’s income potential to drive the loan approval process. To secure a DSCR loan, investors must provide detailed income and expense projections for the rental property, and VP Capital Lending will assess the local rental market and the property's occupancy rates to ensure its profitability.