Free Underwriting Tool

DSCR Loan Calculator

Calculate your Debt Service Coverage Ratio instantly. Check qualification tiers, minimum rent thresholds, and stress-test loan debt service.

DSCR Loan Underwriting Calculator

Tested against standard 2026 commercial DSCR loan guidelines

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Operating Expense Deductions

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Debt Service Coverage Ratio
1.09xDSCR
Standard DSCR Qualified
Rent covers debt service, but lenders may require 25% down or 6 months reserves.
Monthly NOI:$2,380/mo
Monthly Debt Service (P&I):$2,183/mo
Net Monthly Cash Flow:$197/mo
Min Rent for 1.20x DSCR:$3,440/mo
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DSCR Underwriting Formula & Benchmarks

DSCR = Net Operating Income (NOI) ÷ Annual Debt Service

Where Annual Debt Service = Total Principal & Interest payments per year

1.25x or Greater
Prime Investor Tier

Lowest commercial interest rates, maximum leverage (75–80% LTV), and standard 6-month reserve requirements.

1.00x – 1.24x
Standard Coverage

Property is self-sustaining. Lenders may require 70–75% maximum LTV and slightly higher interest rates.

Under 1.00x
Shortfall / Higher Down Payment

Rent does not fully service debt. Requires no-ratio programs, 30%+ equity down, or substantial asset reserves.

Haven Underwriting Methodology

State-Aware Property Economics

Haven models state-specific property taxes (e.g. 1.80% in TX vs 0.75% in CA) and regional hazard insurance to calculate realistic NOI.

Read Methodology
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Frequently Asked Questions About DSCR

What is DSCR in real estate lending?

DSCR (Debt Service Coverage Ratio) is the ratio of a property's Net Operating Income (NOI) to its annual debt obligations (Principal and Interest mortgage payments). It measures the property's ability to pay for its own financing without personal borrower income.

What is a good DSCR ratio for a rental loan?

Most DSCR lenders look for a minimum DSCR of 1.20x to 1.25x for tier-1 pricing and maximum leverage (up to 80% LTV). A DSCR of 1.00x means the rent exactly covers debt and operating expenses, which some lenders accept with higher down payments (25–30%).

How is DSCR calculated?

DSCR = Net Operating Income (NOI) ÷ Total Debt Service. For example, if a property produces $30,000 annual NOI and annual mortgage payments total $24,000, the DSCR is $30,000 ÷ $24,000 = 1.25x.

Do DSCR loans require tax returns or W-2s?

No. DSCR loans are non-QM (non-qualified mortgage) loans made to real estate investors based entirely on the property's rental revenue rather than personal employment, W-2s, or tax returns.

Can I get a DSCR loan if my ratio is under 1.0?

Yes, 'No-Ratio' or sub-1.0 DSCR loan programs exist, but they typically require a 25% to 35% down payment, significant liquid cash reserves (12+ months of payments), and carry an interest rate 0.5% to 1.5% higher than prime DSCR loans.

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