DSCR Calculator:
run the property before the paperwork.
Estimate the monthly payment and see how a rental property's income compares with its housing expense. Adjust any number and the worksheet updates instantly.
Monthly rent ÷ monthly PITIA = DSCR
- Qualify on the property's rent, usually without your tax returns
- Many programs let you close in your LLC
- Purchase, refinance, or cash-out
- A straight answer on your deal from an experienced executive
Read the guide: DSCR loans explained →
For illustrative purposes only. This estimate is not a quote, approval, or commitment to lend. Actual DSCR calculations, qualifying expenses, rates, and program requirements vary by lender and property.
What DSCR do you need
to qualify?
Most DSCR lenders look for a ratio between 1.00 and 1.25. Here's how a property's DSCR typically affects pricing and leverage on investor loans for 1–4 unit properties.
| DSCR | What it typically means |
|---|---|
| 1.25+ | Strongest position. Best pricing and highest leverage, often up to 80% LTV on a purchase. |
| 1.10–1.24 | Comfortably qualifies at standard pricing. |
| 1.00–1.09 | Qualifies with many lenders, often with somewhat higher pricing or lower leverage (around 70–75% LTV). |
| 0.75–0.99 | Limited options. Some programs allow a ratio below 1.00, usually with higher pricing, lower leverage (around 65–70% LTV), stronger credit, and more reserves. |
| No ratio | Case by case. A few programs don't require a minimum ratio for borrowers with strong credit, low leverage, and substantial reserves. |
DSCR is typically calculated as monthly market rent (from the appraisal's rent schedule or a lease) divided by monthly PITIA: principal, interest, property taxes, insurance, and any HOA dues. Ranges shown are general industry guidelines for illustrative purposes only and are not a quote, approval, or commitment to lend. Actual requirements, including DSCR minimums, loan-to-value limits, credit score, and reserves, vary by lender, program, and property.
Let the property
qualify itself.
A DSCR (debt service coverage ratio) loan is an investor mortgage that qualifies on the rental income of the property instead of your personal income. Lenders still look at your credit, reserves, and the property itself.
Usually no personal income docs
Most DSCR programs don't ask for tax returns, W-2s, or pay stubs to qualify. Helpful for self-employed investors and anyone whose write-offs make their income look lower on paper.
Close in your LLC
Many DSCR programs let you take title in an LLC or other business entity, keeping your rentals organized under the structure you already use.
1–4 units, condos & more
Single-family rentals, 2–4 unit multi-family, condos, and townhomes. Some programs also accept short-term rental income on vacation properties.
Purchase, refi & cash-out
Buy your next rental, refinance into a better structure, or pull equity out of a property you own to fund the next one.
Built for
investors.
DSCR loans are for investment properties only, not a home you'll live in. They tend to work best for:
Self-employed investors
Business owners whose tax returns don't reflect what they actually earn.
Growing portfolios
Investors who own several properties and are running into conventional loan limits.
First-time investors
Buyers adding their first rental who want the property to qualify on its own numbers.
Short-term rental owners
Owners of vacation or short-term rental properties, where the program allows short-term rental income.
From numbers
to closing.
A simpler path than a traditional mortgage, because the property does most of the qualifying.
-
1
Run the numbers
Use the calculator above to estimate your DSCR and the rent you'll need.
-
2
Talk to us
Share the property, the rent, and your goals. We'll tell you straight whether the deal works and which programs fit.
-
3
Appraisal & rent schedule
The appraiser confirms the property's value and its market rent, which is what the lender uses to calculate DSCR.
-
4
Close
Close in your name, or in your LLC where the program allows, and put the property to work.
DSCR loan
questions.
Answers to what Connecticut investors ask us most. Don't see yours? Ask an experienced lender directly. New to DSCR? Start with our plain-English guide to DSCR loans.
Book a call →How is DSCR calculated?
DSCR is the property's monthly rent divided by its monthly PITIA: principal, interest, property taxes, insurance, and any HOA dues. A DSCR of 1.00 means the rent exactly covers the payment; 1.25 means the rent is 25% more than the payment.
Do I need to show tax returns or pay stubs?
Usually not. Most DSCR programs qualify on the property's rental income instead of your personal income. Lenders will still review your credit, the property, and your reserves.
What rent does the lender use?
Usually the market rent from the appraiser's rent schedule, or the rent on an existing lease. Each program has its own rules for which figure it uses.
Can I use a DSCR loan for a home I'll live in?
No. DSCR loans are for investment properties only. If you're buying a home to live in, take the 60-second Loan Match and we'll point you to the right program.
Can I close in an LLC?
Many DSCR programs allow you to take title in an LLC or other business entity. We'll confirm what's available for your situation.
What if my property's DSCR is below 1.00?
You may still have options. Some programs allow a ratio below 1.00, usually with a larger down payment, stronger credit, and more reserves. Give us a call and we'll look at the deal with you.