Check if a rental qualifies for a DSCR loan and find the largest loan the rent supports. Everything runs in your browser; nothing is uploaded.
How DSCR is calculated for DSCR loans
Most DSCR lenders use DSCR = gross monthly rent ÷ PITIA, where PITIA = principal & interest + property taxes + insurance + HOA/association dues. A DSCR of 1.0 means rent exactly covers the payment; lenders typically want 1.0–1.25. (Commercial lenders instead use NOI ÷ debt service — see the cash flow calculator for NOI-based DSCR.)
Max loan amount
Rearranging: maximum PITIA = rent ÷ target DSCR. Subtract taxes, insurance and HOA to get the maximum P&I, then convert that payment into a loan amount using the rate and term (present value of an annuity). Your minimum down payment is price − max loan, though lenders also cap LTV (often 75–80%).
FAQ
What is a good DSCR?
1.25 or higher is comfortable for most lenders; some accept 1.0 or even below with a higher rate.
Does DSCR use NOI or rent?
Residential DSCR loans usually use gross rent ÷ PITIA. Commercial loans use NOI ÷ annual debt service.
Do DSCR loans check my income?
Typically not personal income — they qualify the property's rent, plus credit score and reserves.
Why is my max loan lower than the price minus my down payment?
Because the rent can't support a larger payment at your target DSCR; raise rent, lower the rate, or put more down.