DSCR calculator
This calculator is for investor loans that qualify on the property's rent instead of your personal income. It shows the ratio and the rent you would need.
How this calculator works
It adds principal and interest on a 30-year loan (or interest only), monthly taxes, insurance and association dues, then divides the rent by that total. It also shows the rent needed to reach 1.00 and 1.25.
To learn more, see DSCR loans and becoming an investor.
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Loans it explains
Common questions
What is a DSCR loan?
A debt service coverage ratio loan qualifies an investment property on its rent, not your tax returns. The lender compares the monthly rent to the full payment.
What ratio do lenders look for?
Many look for 1.00 or higher, meaning the rent covers the payment. Pricing is often better at 1.20 to 1.25 and up. Some lenders accept a lower ratio with a larger down payment. Rules vary by lender.
Which rent do lenders use?
Lenders usually use the lower of the lease and the appraiser's market rent estimate. For short-term rentals, some lenders use a rental history or a market data report.
Does interest-only help?
It lowers the payment, which raises the ratio. The balance does not go down during the interest-only period, and the payment rises when it ends.
See it with your own numbers
Daniel builds your Mortgage Plan from what you tell him: every loan option that fits, side by side.