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.
Most DSCR programs want 20–25% down
Loan amount: $262,500
Gross rent — the lender's ratio doesn't subtract vacancy or expenses
Adjust to your quoted rate
Enter your exact figures — a $4,213 tax bill is a $4,213 tax bill
1.05 — the property covers its debt, below the 1.25 pricing line. Programs exist here; expect a rate premium.
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.
Rent ≥ $2,851/mo (you're $451 short) or loan ≤ $212,168 — $137,832 down on this price.
This is the lender's cash-flow view. Your accountant's version subtracts vacancy, repairs, and management.
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.
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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.