DSCR Loan calculator
DSCR Loan calculator
Enter the property numbers to estimate your debt service coverage ratio and an estimated maximum loan. A DSCR Loan qualifies on the property income, not your tax returns.
Monthly principal and interest
$0
Monthly PITIA (total payment)
$0
Estimated max loan at 1.00 DSCR
$0
Estimated max loan at 1.25 DSCR
$0
PITIA is principal, interest, taxes, insurance, and association dues. Most lenders look for a ratio at or above 1.00, with the best pricing at 1.25 and higher.
Estimates only. This is not a quote or a commitment to lend. Actual rates, payments, and qualifying are determined by the lender based on full review. DSCR Loans are business purpose loans for investment properties. Lendingplace, Inc. NMLS ID 2003033. Equal Housing Opportunity.
What DSCR means
DSCR is the debt service coverage ratio, the property's gross monthly rent divided by its total monthly payment, including principal, interest, taxes, insurance, and any association dues. A ratio of 1.00 means the rent exactly covers the payment. Above 1.00 means the property produces a cushion.
How Lenders use the ratio
Lenders use the DSCR to decide whether a property can carry its own financing. Most look for 1.00 or higher. The strongest pricing usually begins around 1.25, where the rent covers the payment with meaningful margin. A lower ratio is not always a dead end, since a larger down payment or a pricing adjustment can bring some deals into range.
How to improve your DSCR
You can raise the ratio a few ways. A larger down payment lowers the loan and the payment. A property with stronger rent relative to price improves the numerator. Buying down the rate lowers the payment. On a vacation property, short term rental income can pencil higher than a long term lease, where the rules allow it.
