A DSCR loan stands for "Debt Service Coverage Ratio" loan. It is a type of loan that is commonly used for commercial and residential real estate investments.

The Debt Service Coverage Ratio (DSCR) is a financial metric that measures the cash flow available to repay debt obligations. The DSCR compares the property's net operating income (NOI) to the debt service (i.e., principal and interest payments) on the loan.

In other words, the DSCR loan looks at the income generated by the property to determine whether it can support the debt payments. If the income generated by the property is sufficient to cover the debt payments and provide a cushion, the loan may be approved. The lender may use a minimum DSCR threshold to determine whether the borrower qualifies for the loan.

They can be a good option for commercial real estate investors who are seeking financing for income-generating properties. However, it is important to carefully consider the costs and risks before deciding whether a DSCR loan is right for you.