See if you qualify — free, 60-second check.
A DSCR loan lets real estate investors qualify on a property's rental cash flow instead of personal income — no tax returns or pay stubs. The Debt Service Coverage Ratio (DSCR) is the number that decides it. This calculator computes your DSCR and tells you whether the property is likely to qualify.
DSCR compares a property's income to its debt. The formula is simple: monthly rent divided by the total monthly payment (PITIA — principal, interest, taxes, insurance, and any HOA). A DSCR of 1.0 means the rent exactly covers the payment; above 1.0 means positive cash flow.
Most DSCR lenders look for a ratio of at least 1.0, and 1.25 or higher is considered strong. Some programs allow ratios below 1.0 with a larger down payment or extra reserves, since the shortfall is covered out of pocket.
Because qualification is based on the property, not you, DSCR loans skip the tax returns, pay stubs, and DTI math entirely. They allow LLC ownership, interest-only options, and fast closings — ideal for building a rental portfolio.
Raise rent to market, lower the loan amount with more down payment, or reduce carrying costs like insurance and HOA. Even a modest change to any input can move a borderline property above the 1.0 line.
Want your exact numbers? Use the free eligibility check at the top of this page and a licensed specialist will run them for you — no credit pull.
Many lenders look for 1.0 or higher; 1.25+ is strong. Below 1.0 you may still qualify with a larger down payment or reserves.
DSCR = monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance, and HOA). A ratio of 1.0 means rent equals the payment.
No. DSCR loans qualify on the property's cash flow, so no tax returns, W-2s, or pay stubs are required.
Yes. DSCR loans commonly allow title in an LLC, which many investors prefer for liability and tax planning.
Typically 20–25% down. A larger down payment lowers the payment and raises your DSCR.
Lenders usually use a rent appraisal (Form 1007) or a signed lease, whichever supports the figure. Enter your expected market rent for an estimate.
Many do. An interest-only payment lowers PITIA and can raise your DSCR, though the full payment returns later.
Single-family rentals, condos, and small multi-unit properties commonly qualify. Short-term rentals may qualify under specific programs.
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