DSCR Loan Calculator 2026
Calculate your Debt Service Coverage Ratio for investment property financing. 1.0+ = you qualify. No W-2s, no tax returns required.
✓ No income verification✓ Rates from 6.5%✓ Unlimited properties✓ LLC allowed
Calculate Your DSCR Ratio
Use market rent from appraisal, not current tenant's rent
Avg DSCR rate: 6.5-8.0% in May 2026
DSCR Formula
DSCR = Monthly Rent ÷ Monthly PITI
PITI = Principal + Interest + Taxes + Insurance + HOA. Lenders use market rent from appraisal, not actual rent. A 1.0 DSCR means rent exactly covers the payment.
DSCR Requirements by Tier (2026)
| DSCR | Status | Rates | Min Down |
|---|---|---|---|
| 1.25+ | Excellent | 6.5-7.0% | 20% |
| 1.10-1.24 | Good | 7.0-7.5% | 20-25% |
| 1.0-1.09 | Marginal | 7.5-8.0% | 25-30% |
| Below 1.0 | Poor | 8%+ | 30-35% |
DSCR Loan Pros
- ✓ No W-2s, no tax returns, no DTI calculation
- ✓ Unlimited investment properties (no Fannie 10-property cap)
- ✓ Close in LLC name for asset protection
- ✓ Close in 21 days (vs 45 for conventional)
- ✓ Self-employed, 1099, foreign national OK
DSCR Loan FAQ
What DSCR ratio do I need to qualify?
Minimum 1.0 DSCR at most lenders (rent ≥ monthly payment). 1.25+ gets best rates and lowest down payment. Some lenders accept 0.75 DSCR with 30% down and 720+ credit.
What credit score do I need for a DSCR loan?
Most DSCR lenders require 620-640+ minimum credit score. 700+ gets the best rates (6.5-7%). 620-679 typically pays 7.5-8% or higher. Some lenders go to 580-600 with more down payment.
How much down payment is required?
20-25% minimum for most DSCR programs (15% available at some lenders with higher rates). Higher DSCR (1.25+) can qualify at 20% down. Foreign nationals typically need 25-30%.
Can I use a DSCR loan for short-term rentals (Airbnb)?
Yes — many DSCR lenders accept short-term rental income. They typically require 12-24 months of Airbnb income history or use 90% of projected annual income from management projections. Rates may be slightly higher for STR properties.
How are DSCR loans different from conventional investment loans?
Conventional investment loans require full income documentation (W-2s, tax returns, DTI calculation) and cap you at 10 financed properties. DSCR loans use only rental income for qualification, require no personal income docs, and have no property count limit. Rates are typically 0.5-1.5% higher for this flexibility.
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