DSCR Rental Loan 2027 Qualify Calculator
DSCR loans qualify rental investors based on the property's rental income covering debt (DSCR ≥1.0-1.25), NOT personal income. Calculate DSCR + qualifying loan amount.
| Monthly rent | — |
| Proposed loan amount | — |
| Principal + Interest | — |
| Total PITI | — |
| DSCR (rent / PITI) | — |
| Lender minimum DSCR | — |
| Status | — |
| Max loan at this rent | — |
DSCR (Debt Service Coverage Ratio) loans are investor-only mortgages that qualify based on the property's RENT covering the mortgage (DSCR ≥1.0-1.25), NOT your personal income. Used by rental investors with non-W-2 income, multiple existing rentals, or stated-income preferences. Cost: 0.5-1.5% higher rate than conventional. DSCR = monthly rent / monthly PITI.
How DSCR Loans Work
Lender appraises the property. Estimates market rent (or accepts lease if signed). Calculates PITI for proposed loan. DSCR = rent/PITI. Above 1.0 = rent covers debt. Above 1.25 = comfortable margin (most lenders' sweet spot). Below 1.0 = property cash-flow negative, usually declined or higher rate.
Lender DSCR Minimums
Tier 1 (best rate): 1.25+ DSCR. Tier 2 (slight premium): 1.10-1.24. Tier 3 (sub-1.0 DSCR loans): 0.75-0.99, much higher rate (10%+), 25-30% down. Some investor-only lenders: as low as 0.75 with strong borrower profile.
DSCR vs Conventional Investor Loan
Conventional: W-2 docs, tax returns, DTI ≤45%, max 10 financed properties. DSCR: no W-2 docs, no DTI, unlimited properties. Cost: 0.5-1.5% higher rate, 25%+ down. Best for: full-time investors, self-employed, multiple LLCs.
Improving Your DSCR
1) Higher rent (renovate, market positioning). 2) Lower PITI (more down payment, lower rate via points buy-down). 3) Shop multiple lenders — DSCR appraisal rents vary. 4) Bundle properties (cross-collateralization) for portfolio loan.
Last updated May 2026. Sources: Freddie Mac Investor Property Guide, Investopedia DSCR Definition.