DSCR Loan Calculator 2026: Investment Property ROI

Calculate your Debt Service Coverage Ratio for investment property financing. 1.0+ = you qualify. No W-2s, no tax returns required. $2,500 rent / $2,000 PITI = 1.25 DSCR = best rates.

✓ No income verification✓ Rates from 6.5%✓ Unlimited properties✓ LLC allowed

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DSCR = Monthly Rent ÷ Monthly PITI. A ratio of 1.0+ means rental income covers the mortgage payment and most lenders will approve. 1.25+ DSCR gets the best rates (6.5-7.0%) and lowest down payment (20%). Example: $2,500 rent / $2,000 PITI = 1.25 DSCR. No W-2s, no tax returns needed — qualify on rental income alone. Use the calculator below for your exact ratio.

Calculate Your DSCR Ratio

Use market rent from appraisal, not current tenant's rent

Avg DSCR rate: 6.5-8.0% in July 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)

DSCRStatusRatesMin Down
1.25+Excellent6.5-7.0%20%
1.10-1.24Good7.0-7.5%20-25%
1.0-1.09Marginal7.5-8.0%25-30%
Below 1.0Poor8%+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
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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.
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.
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.
What is the difference between a DSCR loan and a conventional investment property loan?
DSCR loans qualify based on rental income only (no W-2s, no tax returns, no DTI). Conventional investment loans require full income documentation, tax returns, and DTI under 45%. DSCR rates are 1-2% higher but close faster (21 vs 45 days) and allow unlimited properties.
Can I get a DSCR loan in an LLC?
Yes — DSCR loans are designed for LLC borrowers. You can close in your LLC name for asset protection and liability shielding. Conventional loans typically require personal name only. DSCR lenders require a personal guarantee but the property is titled in the LLC.
What are current DSCR loan rates in 2026?
As of July 2026: DSCR rates range from 6.5% to 8.5% depending on DSCR ratio, credit score, and down payment. 1.25+ DSCR with 720+ credit and 25% down: 6.5-7.0%. 1.0-1.24 DSCR with 640 credit and 20% down: 7.5-8.0%. Below 1.0 DSCR: 8%+ or denial.

Related Calculators & Guides

← All Free Mortgage CalculatorsDSCR Loan Guide 2026 →Mortgage Payment Calculator →DSCR Investor Guide →How Much House Can I Afford →Self-Employed Mortgage Guide →

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Free • 620+ credit • 20% down • No income docs