DSCR loan calculator
See whether a rental's income covers the loan, and the largest loan a DSCR lender's minimum ratio and LTV limit allow.
DSCR
1.14
Below a 1.25 minimum: lower the loan or raise the rent.
Max loan
$205,945
Min. down payment
$94,055
Payment (P&I)
$1,573
NOI (monthly)
$1,800
Rent ÷ PITIA
1.24
LTV
75.0%
- Max loan by DSCR
- $205,945
- Max loan by LTV
- $240,000
- Max payment at min. DSCR
- $1,440
- PITIA / mo
- $2,023
- Operating expenses / mo
- $575.00
How this is calculated
- 1Collected rent = rent × (1 − vacancy %).
- 2Operating expenses = property tax ÷ 12 + insurance ÷ 12 + HOA + other + management % of collected rent + maintenance % of rent.
- 3NOI = collected rent − operating expenses. DSCR = NOI ÷ monthly principal and interest.
- 4Max loan by DSCR: the highest payment the NOI covers is NOI ÷ minimum DSCR; the loan that payment repays over the term at the rate is the limit. Max loan by LTV = price × max LTV %. The max loan is the smaller of the two.
- 5Rent ÷ PITIA = gross rent ÷ (P&I + tax + insurance + HOA), the simpler ratio many lenders quote.
Lenders differ: some use gross rent ÷ PITIA, some NOI ÷ debt service, and most add credit-score, reserve and minimum-loan rules. Interest-only loans and prepayment penalties aren't modeled.
Frequently asked questions
- Do DSCR lenders check my personal income?
- Usually not. They qualify the loan on the property's rent instead of your pay stubs or tax returns, but they still check your credit, cash reserves and down payment.
- What rent does a DSCR lender use?
- The current lease, or the appraiser's estimate of market rent if the property is vacant or the lease is below market. Some lenders use the lower of the two.
- Can I get a DSCR loan if the ratio is below 1.0?
- Some lenders offer programs for ratios below 1.0, usually with a bigger down payment and a higher rate. Many require at least 1.0 to 1.25.
- Are DSCR loan rates higher than conventional loans?
- Typically, yes. Because they skip income verification, DSCR loans usually cost more than conventional investment property loans for the same borrower.
- Can I use a DSCR loan for a short-term rental?
- Some lenders allow it, using the property's booking history or a market estimate of short-term rental income. Requirements vary, so ask lenders directly.