Does Your Rental Qualify for a DSCR Loan?
DSCR loans are approved on the property’s rent, not your tax returns. Enter the numbers for your deal to see the ratio a lender will look at and how much you could borrow.
What DSCR Means
Debt service coverage ratio is the monthly rent divided by the full monthly payment. A 1.00 means the rent covers the payment exactly. A 1.25 means the rent is 25% more than the payment. Many programs require 1.00 or higher, but some lenders accept ratios below 1.00, and no-ratio programs skip the ratio entirely.
What Lenders Count
The payment includes principal, interest, property taxes, insurance, and any HOA dues. Rent comes from the current lease or the appraiser's market rent estimate.
Why Investors Use It
No personal income verification, closings in an LLC, and no cap on how many rentals you finance. It works for purchases, cash-out refinances, and paying off a hard money loan.
