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DSCR Loan Calculator

  • DSCR Loan Calculator

DSCR Loan Calculator

Estimate your Debt Service Coverage Ratio (DSCR) and see whether your investment property may qualify for DSCR financing.

Use our free DSCR Loan Calculator to quickly determine:

  • Your property’s DSCR ratio
  • Estimated loan eligibility
  • Monthly cash flow potential
  • Debt coverage strength for lenders

Whether you’re purchasing a rental property or refinancing an existing investment, this calculator helps investors understand how lenders evaluate property income.

What Is a DSCR Loan?

A DSCR loan (Debt Service Coverage Ratio loan) is a type of real estate investment loan that qualifies borrowers primarily based on the income generated by the property instead of personal income.

Lenders use the DSCR ratio to determine whether a property produces enough rental income to cover its monthly mortgage payment and operating expenses.

How to Use the DSCR Calculator

Enter the following information:

Monthly Rental Income

Include:

  • Long-term rental income
  • Short-term rental revenue (Airbnb/VRBO)
  • Other recurring property income

Monthly Property Expenses

Include:

  • Property taxes
  • Insurance
  • HOA dues
  • Maintenance reserves
  • Property management fees

Monthly Loan Payment

Include:

  • Principal
  • Interest
  • Taxes
  • Insurance (if applicable)

The calculator will instantly estimate your DSCR ratio and provide a general qualification range.

Understanding DSCR Ratios

DSCR Ratio Meaning Lender Perspective
Below 1.00 Property income does not cover debt obligations. High risk / difficult approval.
1.00 – 1.24 Income barely covers loan payments. Acceptable with compensating factors.
1.25 – 1.49 Healthy cash flow coverage. Preferred by many lenders.
1.50+ Strong income relative to debt. Excellent financing profile.

Why DSCR Matters

DSCR loans are popular among:

  • Real estate investors
  • Airbnb investors
  • Multifamily property owners
  • Self-employed borrowers
  • Portfolio investors

Unlike conventional mortgages, DSCR lenders focus more on the property’s income potential than tax returns or W-2 income.

Benefits may include:

  • No personal income verification
  • Faster approvals
  • Unlimited property financing potential
  • LLC ownership options
  • Interest-only loan options

Program Overview

  • Loan size: $100,000 to $2,000,000
  • Purpose: Purchase, Refinance, Cash Outs, Rehab
  • Loan term: 30-Year Fixed
  • Amortization: up to 30 years
  • LTV: up to 80%
  • FICO: Credit friendly and no minimum credit score program available
  • DSCR: 0.75x
  • Documentation: Light docs, No tax returns, proof of income or DTI required
  • Foreign nationals welcome

Eligible Property Types

  • Single-family rentals
  • Condos
  • Multifamily properties
  • Short-term rentals
  • Mixed-use investment properties

Frequently Asked Questions

What is a good DSCR ratio?

Most lenders prefer a DSCR of at least 1.20, though some programs allow ratios below 1.0 with compensating factors.

Can I get a DSCR loan with no income verification?

Yes. Many DSCR lenders do not require personal income verification because qualification is based on the property’s cash flow.

Are Airbnb properties eligible for DSCR loans?

Many lenders allow short-term rental income for DSCR qualification, though requirements vary.

Do DSCR loans require a down payment?

Yes. Most DSCR loans require 15%–25% down, depending on the property type and borrower qualifications.

Is a higher DSCR better?

Yes. A higher DSCR generally indicates lower lender risk and stronger property cash flow.

I closed a 2 property package with Magis. The whole process was smooth and they were responsive the whole time. I will definitely use them again in the future.
Connor Smith
As a Realtor, Gretchen and Dave were a pleasure to work with. Easy to communicate and they have a good variety of loan products for investors of all shape/sizes that most loan officers can't provide. Thank you for your hard work and would highly recommend to other investors!
James Wangelin II-Realtor
Thoroughly enjoyed working with Dave and Gretchen! They are quick to respond and very knowledgeable in guiding their clients to the finish line. I am looking forward to more opportunities to work with Magis Funding Solutions. Highly recommend their services.
Jay Song

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