DSCR Loan Calculator
Calculate debt service coverage ratio for investment property loans
Understanding DSCR Loans
A DSCR (Debt Service Coverage Ratio) loan uses the property's income potential rather than the borrower's personal income to qualify for financing. This calculator helps determine if your investment property's rental income can support the loan payments.
DSCR Ratio Thresholds
Excellent
1.25+ DSCR
Best loan terms available
Good
1.0 - 1.25 DSCR
Standard qualification
Poor
Below 1.0 DSCR
May not qualify
Key Factors to Consider
- Monthly rental income potential
- Property operating expenses
- Loan terms and interest rates
- Property type and condition
- Market rental rates
Frequently Asked Questions
What is a good DSCR ratio?
Most lenders prefer a DSCR of 1.25 or higher, though some may accept ratios as low as 1.0 for strong borrowers.
How can I improve my DSCR?
Increase rental income, reduce expenses, or adjust loan terms (down payment, rate, term) to improve your DSCR ratio.
Why use a DSCR loan?
DSCR loans are ideal for investment properties as they focus on the property's income rather than personal income qualification.
Financial Disclaimer
This calculator provides estimates only. Actual loan terms, rates, and qualification requirements may vary. Consult with a mortgage professional for specific advice about your situation.