Use the DSCR calculator to determine whether an investment property qualifies for a DSCR loan and estimate your maximum loan amount. Enter the property's expected monthly gross rent, purchase price or value, the interest rate you're quoting, taxes, insurance, and any HOA dues. The tool returns the property's Debt Service Coverage Ratio (DSCR = gross rent ÷ PITIA), the maximum LTV your ratio supports, and an estimated monthly payment.
Most DSCR lenders price in three tiers: DSCR ≥ 1.25 receives the best rates and highest LTVs (up to 80% purchase, 75% cash-out); DSCR 1.00-1.24 is standard pricing at 75-80% LTV; DSCR 0.75-0.99 typically caps at 70-75% LTV with rate adjustments; and no-ratio programs (DSCR below 0.75 or unknown) usually cap at 65-70% LTV.
Common levers to improve DSCR: switch to an interest-only payment for the first 10 years, extend to a 40-year amortization, buy down the rate with points, use a lower LTV, or verify a higher market rent through a Form 1007 rent schedule. Short-term rental income from AirDNA can also boost qualifying rent on Airbnb and VRBO properties.