Loading
Powered bySRK CAPITAL
Calculate the Debt Service Coverage Ratio for an investment property by comparing gross rental income to total mortgage payment (PITIA).
Plan your financial future with our suite of mortgage calculators
A DSCR loan is an investment property mortgage where the lender qualifies you based on the rental income the property produces rather than your personal income. DSCR stands for Debt Service Coverage Ratio, which measures whether the rent covers the mortgage payment.
DSCR equals the gross monthly rental income divided by the total monthly mortgage payment. The mortgage payment includes principal, interest, property taxes, homeowners insurance, and any HOA dues. A ratio of 1.0 means the rent exactly covers the payment.
Most lenders require a minimum DSCR of 0.75 to 1.0. A ratio of 1.25 or higher is considered strong and typically qualifies for the best rates. Some programs accept ratios below 1.0, but expect higher rates and larger down payments.
No. DSCR loans do not require W-2s, tax returns, or pay stubs. The property income alone determines qualification. This makes DSCR loans popular with self-employed investors and borrowers whose tax write-offs reduce reported income.
Single-family rentals, 2-4 unit properties, condos, townhomes, and short-term rentals typically qualify. The property must be non-owner-occupied, meaning it is an investment property you rent out rather than your primary residence.
PITIA stands for Principal, Interest, Taxes, Insurance, and Association dues. Lenders use the full PITIA amount when calculating DSCR because it represents the true monthly cost of carrying the property, not just the loan payment itself.
You can raise the ratio by increasing rent, making a larger down payment to reduce the loan amount, buying down the rate, or choosing a property with lower taxes and insurance. Even a small rent increase or rate reduction can push the ratio above the lender minimum.
Updated 4/29/2026
Calculators Dscr is updated daily with practical mortgage guidance for this page.