Finance
In New Mexico, a 'DSCR loan' (debt service coverage ratio loan) used by real estate investors means:
AThe buyer's personal income determines qualification
BQualification is based on whether the property's rental income covers the mortgage payment by the required ratio✓ Correct
CThe loan requires a DSCR of at least 2:1 for all properties
DThe loan is backed by the SBA
Explanation
DSCR loans qualify investors based on the property's rental income divided by the mortgage payment (PITI). Lenders typically require a DSCR of 1.
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