What DSCR Measures in an Investment-Property Loan

A debt-service-coverage ratio compares qualifying property income with a qualifying housing expense under the selected loan program. The exact calculation, rent treatment, expense treatment, and minimum ratio vary by lender and program.

A simple illustration

If qualifying monthly rent is $8,000 and the qualifying monthly housing expense is $6,400, the simple ratio is 1.25x. That does not by itself determine approval or pricing.

The complete review still matters

• Property type and occupancy
• Market rent or lease documentation
• Principal, interest, taxes, insurance, HOA, and applicable expenses
• Loan-to-value and loan amount
• Credit profile, reserves, experience, and entity review
• Appraisal, title, insurance, and program overlays

Use the calculator as an illustration

The site’s Portfolio Builder helps organize preliminary assumptions. It is not a quote, approval, appraisal, or commitment to lend.