DSCR Loan Calculator
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Loan Amount $300,000
LTV Ratio 75%
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How Lenders Determine Rent
Lenders use the lower of market rent (appraiser’s Form 1007/1025) or the in-place lease. Vacant properties use appraiser’s concluded market rent. Some programs apply a vacancy factor (e.g., 5%).
PITIA = Principal + Interest + Taxes + Insurance + Association dues. This is the denominator in the DSCR calculation.
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Monthly P&I Payment $2,048
Monthly Taxes $400
Monthly Insurance $200
Monthly HOA $0
Total Monthly
PITIA $2,648
✓ Qualifies for DSCR Loan
Debt Service Coverage Ratio
1.21
$3,200 rent ÷ $2,648 PITIA
Poor (<0.75) Fair (0.75-1.0) Good (1.0-1.25) Excellent (>1.25)
PITIA Breakdown
Principal
$565
Interest
$1,483
Taxes
$400
Insurance
$200
PITIA
$2,648
Loan Qualification Factors
DSCR Ratio PASS
1.21
Min: 1.0 (1.25+ preferred)
LTV Ratio PASS
75%
Max: 80% (75% typical)
Monthly Cash Flow PASS
$552
Rent minus PITIA
Annual Cash Flow PASS
$6,624
Before OpEx reserves
Additional Metrics
Loan Amount Total loan amount based on property value and
down payment percentage.
$300,000
Monthly Payment Total monthly PITIA payment (Principal +
Interest + Taxes + Insurance + Association dues).
$2,648
Gross Yield Annual gross rent divided by property value.
Quick screening metric for rental properties.
9.6%
P&I Only Monthly principal and interest payment only
(excluding taxes, insurance, HOA).
$2,048
Down Payment Cash required upfront based on down payment
percentage.
$100,000
Price per $1 Rent Property price divided by monthly rent. Lower
is better. Similar to GRM but inverted perspective.
$125
What-If Scenarios
Calculate rent needed or max loan at different DSCR thresholds
To achieve DSCR
1.00
Min rent: $2,648
To achieve DSCR
1.25
Min rent: $3,310
At current rent
Max Loan
$324,000 @ 1.0 DSCR
Typical DSCR Loan Requirements (2025)
Minimum DSCR 1.0 – 1.25
Credit Score 620+ (700+ for best rates)
Down Payment 20-25% typical
Max LTV 75-80%
Cash Reserves 2-6 months PITIA
Interest Rates 6.12% – 8.5%
