Tool 04 — DSCR Analyzer

The one number that decides a DSCR loan, before you're under contract.

One number decides a DSCR loan: what the property earns, divided by what it owes.

A DSCR lender never asks what you make. They ask what the property makes.

The deal
Scenario

Most DSCR programs want 20–25% down

Loan amount: $262,500

What it rents for

Gross rent — the lender's ratio doesn't subtract vacancy or expenses

What the loan costs

Adjust to your quoted rate

Enter your exact figures — a $4,213 tax bill is a $4,213 tax bill

Your DSCR
Debt service coverage ratio
1.05
Between 1.0 and 1.25

1.05 — the property covers its debt, below the 1.25 pricing line. Programs exist here; expect a rate premium.

Payment basis

Interest-only flatters your DSCR — the payment drops, so the ratio rises. Lenders know this too: some qualify you on the interest-only payment, others on the full amortizing payment regardless. Toggle both. The amortizing number is your stress test.

To hit 1.25

Rent ≥ $2,851/mo (you're $451 short) or loan ≤ $212,168 — $137,832 down on this price.

The monthly math
Gross monthly rent$2,400
Principal + interest (30-yr)$1,881
Taxes + insurance (monthly)$400
Total debt service (PITIA)$2,281
Net monthly cash flow+$119

This is the lender's cash-flow view. Your accountant's version subtracts vacancy, repairs, and management.

The loan
Loan amount$262,500
Interest rate7.75% 30-yr fixed
Down payment$87,500 (25%)
Who this is for

If your tax returns are three LLCs deep and your accountant is good at their job, your reported income looks terrible on purpose. DSCR lending exists for exactly this.

How the ratio is calculated

DSCR = gross monthly rent ÷ (principal & interest + monthly taxes & insurance + HOA). That's the lender convention — gross rent over PITIA. Vacancy, repairs, and management belong in your underwriting, not in this ratio.

1.25 is where most programs' best pricing starts, not a minimum — many programs lend at 1.0–1.2, at a rate premium. Below 1.0, the property doesn't cover its own payment.

For the next deal

If you've ever filled out one lender form and spent the next month screening calls, you know why this site works the way it does. When you're ready to line up capital for the next deal — see your pre-qualified range from a network of 400+ lenders. No broker calls, no hard credit pull.

See your pre-qualified range

Email me this analysis

The ratio, the monthly math, and the distance to 1.25 — in your inbox. Nothing else follows it.

This tool provides educational estimates only, not financial advice or a loan offer. Actual rates, terms, and qualification depend on the lender, the program, and your documents. Consult a licensed mortgage professional before acting on these numbers.