DSCR Calculator
Does Your Property Qualify for a DSCR Loan?
Enter your property details below to instantly see your estimated DSCR ratio and whether you may qualify for a DSCR investment property loan.
| Principal & Interest | — |
| Property Taxes | — |
| Insurance | — |
| HOA | — |
| Total Monthly Payment (PITIA) | — |
| Monthly Rental Income | — |
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Book a Free Consultation → Tyler Huntington · NMLS #181638 · (626) 731-9515What Is a DSCR Loan?
A DSCR (Debt Service Coverage Ratio) loan is a type of investment property mortgage that qualifies borrowers based on the property's rental income rather than personal income. This makes DSCR loans ideal for real estate investors, self-employed borrowers, and anyone who wants to scale their rental portfolio without traditional income documentation.
How Is DSCR Calculated?
DSCR is calculated by dividing the property's gross monthly rental income by the total monthly mortgage payment (PITIA — Principal, Interest, Taxes, Insurance, and HOA). A DSCR of 1.0 means the rent exactly covers the payment. Most lenders require a minimum DSCR of 1.0, though some programs allow ratios as low as 0.75.
DSCR Loan Requirements
- Minimum DSCR: Typically 1.0 or higher (some lenders allow 0.75+)
- Credit Score: Usually 660+ (better rates at 720+)
- Down Payment: 20–25% minimum for most programs
- Property Types: Single-family, 2–4 unit, condos, townhouses
- No Income Docs: No W-2s, tax returns, or pay stubs required
- Loan Amounts: Typically $100K – $3M+
Why Use a DSCR Loan?
DSCR loans are popular with investors because they remove the biggest hurdle in traditional lending — proving personal income. Whether you're buying your first rental property or adding to a large portfolio, DSCR loans let the property's cash flow speak for itself. They also allow vesting in an LLC for asset protection.
DSCR Loan Rates
DSCR loan rates are typically higher than conventional mortgage rates, generally ranging from 6.5% to 9% depending on credit score, LTV, property type, and prepayment penalty term. Choosing a longer prepayment penalty (3–5 years) typically results in a lower rate.