Broker DaveDSCR calculator
A DSCR loan qualifies the property, not your paycheck. Put in the rent and the carrying costs and you'll see exactly where your ratio lands — for a purchase or a cash-out refinance.
The property
$60,000 down · $240,000 loan
Gross market rent — the appraiser's 1007, or the in-place lease, whichever the lender uses.
The loan
Typically 80% on a purchase, 75% on a cash-out refinance.
Carrying costs
Florida landlord policies run high — replace this estimate with a real quote.
Rent covers the payment. Most DSCR programs start at 1.0.
Monthly payment (PITIA)
- Principal & interest
- $1,617
- Taxes
- $300
- Insurance
- $275
- HOA
- $0
- Total PITIA
- $2,192
- Monthly rent
- $2,600
- Monthly cash flow
- $408
The deal
- Loan amount
- $240,000
- Loan-to-value
- 80.0%
- Max loan at 1.00 DSCR
- $300,571
- Max loan at 1.25 DSCR
- $223,387
- Max loan at 80% LTV
- $240,000
- Max eligible loan
- $240,000
Both limits bind, so the eligible loan is the lesser of the two — here it's the LTV cap. Credit and reserves still apply on top.
What the ratio actually means
1.25 and up
Strong coverage. The rent clears the payment with room to spare, and you'll generally see the best pricing and the highest leverage.
1.00 to 1.24
The rent covers the payment. Most DSCR programs start right at 1.0 — you qualify, though pricing improves as you climb toward 1.25.
Under 1.00
The rent falls short of the payment. Some lenders still lend here with a larger down payment, more reserves, or a rate add-on. It isn't automatically a no.
A few honest caveats
- Lenders differ on whether they use the lease in place or the appraiser's market rent (form 1007) — usually the lower of the two.
- Clearing the ratio is necessary, not sufficient. LTV caps, credit score, and cash reserves all still apply.
- Qualifying on an interest-only payment raises your DSCR, but plenty of lenders still underwrite to the fully-amortized payment. And the principal doesn't go away — it just starts later.
- DSCR uses gross rent. Vacancy, management and maintenance don't come out of the numerator — taxes, insurance and HOA are already in the payment on the bottom.
This calculator is educational and is not a loan offer, a rate quote, or a commitment to lend. Every figure is an estimate. David Lurvey, NMLS 410420.