DCSR Loan Calculator

A DSCR loan, or Debt Service Coverage Ratio loan, is a type of real estate investment financing that qualifies borrowers based on the income generated by the property—not the borrower's personal income, tax returns, or W-2s.

🔍 What Does DSCR Mean?

DSCR stands for Debt Service Coverage Ratio, which measures a property's ability to cover its debt obligations. It’s calculated using this formula:


DSCR = Net Operating Income (NOI) ÷ Annual Debt Payments
  • A DSCR of 1.0 means the property earns just enough to cover the loan payments.
  • A DSCR above 1.0 (like 1.2 or 1.5) means the property generates more income than needed—this is what most lenders prefer.
  • Some lenders accept DSCR as low as 0.75–1.0 if there’s strong equity or reserves.

✅ Why Investors Use DSCR Loans

  1. No Personal Income Verification
    Unlike traditional mortgages, you don’t need tax returns, pay stubs, or employment history.
  2. Fast & Simple Approvals
    Underwriting is based on property cash flow, not your credit file. Great for self-employed investors.
  3. Ideal for Rental Properties
    Whether you’re buying, refinancing, or pulling equity from single-family rentals, multifamily units, or short-term rentals (Airbnb/VRBO), DSCR loans are a smart fit.
  4. Scalable for Portfolio Growth
    Perfect for growing your real estate portfolio without the limitations of personal DTI (debt-to-income) caps.

🏘️ Typical DSCR Loan Features

  • Loan amounts: $100K to $5M+
  • Terms: 30-year fixed, interest-only, or ARM options
  • Property types: SFRs, condos, 2–8 units, multifamily
  • Minimum DSCR: Often 1.0+, some lenders accept lower
  • Down payment: Usually 20–25%
  • Credit score: Typically 620+, but varies by lender

🧠 Is a DSCR Loan Right for You?

A DSCR loan may be perfect if you:

  • Are an investor or landlord with rental income
  • Want to qualify based on property income, not personal
  • Are scaling your portfolio or refinancing current rentals
  • Need flexible options with faster funding


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