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Find the debt-service coverage ratio (DSCR) a lender uses to approve a rental loan. DSCR = monthly rent ÷ monthly PITIA. Enter the rent, loan, rate, and carrying costs to see if the property qualifies.
Estimate. Lenders compute DSCR as gross rent ÷ PITIA (principal, interest, taxes, insurance, association dues). Most programs want 1.0+; many allow lower with more down.
DSCR = Gross Monthly Rent ÷ Monthly PITIA, where PITIA is principal, interest, taxes, insurance, and any association dues. A DSCR of 1.00 means the rent exactly covers the full payment; 1.25 means the property earns 25% more than it costs to carry. Most DSCR loan programs approve at 1.0 and above and price best at 1.25+, while some allow ratios as low as about 0.75 with a larger down payment and stronger credit. Because approval is based on the property’s income, DSCR loans require no tax returns or personal income.
Want the full picture with cash-on-cash and cap rate? Use the rental property calculator. Read how DSCR loans work and DSCR loan rates, then explore our DSCR loan program.
A DSCR of 1.0 means the rent covers the full payment (PITIA). Most lenders approve at 1.0+ and give the best pricing at 1.25 or higher. Some programs allow ratios as low as roughly 0.75 with a larger down payment and stronger credit.
Most DSCR lenders divide the property’s gross monthly rent by its monthly PITIA — principal, interest, taxes, insurance, and HOA/association dues. Some use net operating income instead, but gross-rent-to-PITIA is the common standard.
No. That is the point of a DSCR loan — it qualifies on the property’s rent, not your tax returns or W-2 income, so self-employed and portfolio investors can qualify based on the deal itself.
Usually the lower of the actual lease or a market-rent estimate from the appraiser (Form 1007). For short-term rentals, some lenders will use projected Airbnb income, which can raise your DSCR.
Yes, some programs offer sub-1.0 DSCR loans (for example down to about 0.75) if you put more money down and have strong credit, since the property does not fully cover its payment on paper.
Qualify on the property’s rent — no tax returns, close in an LLC. Free quote, no credit pull to start.