DSCR Loan Calculator
A DSCR loan qualifies you based on the property's income, not your personal income. This calculator shows if the property meets the DSCR threshold and your expected cash flow.
DSCR Loan Calculator
Evaluate Debt Service Coverage Ratio for investment property loans
DSCR of 1.19x is below the typical 1.25x minimum. Lenders may require additional reserves or a larger down payment.
DSCR (Debt Service Coverage Ratio) = Monthly Rent / (PITI + Expenses). Most DSCR lenders require a minimum ratio of 1.25x. Does not include vacancy, maintenance, or management fees in the calculation. Consult a lender for actual DSCR loan terms.
Frequently Asked Questions
What is DSCR and what ratio do I need?+
DSCR (Debt Service Coverage Ratio) = Monthly rent ÷ Monthly mortgage payment (PITI). Most lenders require DSCR ≥ 1.25. A DSCR of 1.5 means the property generates 50% more income than needed to cover the mortgage. Higher DSCR = easier approval.
How do DSCR loans differ from conventional mortgages?+
DSCR loans focus on property income, not your W-2 or tax returns. No income verification, no DTI requirements. Higher interest rates (0.5-1.5% above conventional), larger down payments (20-25%), and may require 6 months of reserves. Ideal for investors with complex income.
Can I use a DSCR loan for a primary residence?+
No. DSCR loans are for investment properties only (rentals, short-term rentals, fix-and-flips). The property must generate rental income. For primary residences, use conventional, FHA, or VA loans.
What is DSCR and what ratio do I need?
DSCR (Debt Service Coverage Ratio) = Monthly rent ÷ Monthly mortgage payment (PITI). Most lenders require DSCR ≥ 1.25. A DSCR of 1.5 means the property generates 50% more income than needed to cover the mortgage. Higher DSCR = easier approval.