A DSCR (Debt Service Coverage Ratio) loan is a type of mortgage designed for real estate investors, where approval is based on the property's cash flow rather than the borrower's personal income. Lenders look at the rental income from the property and compare it to the mortgage payment to calculate the DSCR. If the property generates enough income to cover the debt (typically a DSCR of 1.0 or higher), the borrower may qualify. These loans are popular with investors who want to qualify based on the property's performance rather than their own tax returns or employment income.