DSCR Rental Loan Qualifier Calculator
DSCR (Debt Service Coverage Ratio) loans qualify based on property cash flow, not personal income — perfect for self-employed investors and high-income borrowers with complex tax returns. Rates 100-200bps above conventional but no W-2 income verification. This tool computes qualifying DSCR.
DSCR Loan Basics
Qualifies investor based on property cash flow rather than personal income. DSCR = Monthly Rent ÷ Monthly PITI (Principal + Interest + Tax + Insurance). Lenders require minimum 1.0 (rent covers PITI), 1.15 standard, 1.25+ for best pricing. No W-2 income required. Tax returns not used for qualification.
When DSCR Beats Conventional
DSCR fits when: (1) Self-employed with complex tax returns. (2) Already maxed out conventional 10-loan limit. (3) Property cash flows strongly but personal DTI is high. (4) Need to close fast (DSCR loans close 15-25 days vs 30-45 conventional). Premium: 100-200bps higher rate, but no W-2 hassle.
Typical Requirements
680+ FICO (760+ for best pricing). 20-25% down minimum (15% available with premium). 6 months reserves. Appraisal includes Form 1007 (Single-Family Rent Schedule) showing market rent. Some lenders also accept actual signed lease as alternative rent verification. Pre-payment penalty common (1-3 years, 1-3% balance).
Source: Non-QM Lending Report 2026, Fannie/Freddie Investor Loan Standards. Last updated: May 2026.