How is the DSCR loan amount worked out?

It depends on the property's value, the rent it supports and your file. With us, the loan is set per deal and confirmed with a loan officer on a short call. DSCR rental loans go up to 80% of the property's value.

What is a DSCR loan calculator?

A quick way to check a rental deal before you apply. Enter the price, loan, rate, rent and costs, and it shows whether the rent covers the full payment, and by how much.

Is this calculator a loan approval?

No. It's an estimate. Your real numbers depend on the appraisal, the rent schedule, your rate and your file.

Free tool

DSCR Loan Calculator: Does the Rent Cover the Payment?

A DSCR loan qualifies on the property's rent, not your income. Enter the deal below to see the full monthly payment and how the rent compares, in plain dollars.

The property and the loan

Purchase price$400,000

Loan-to-value75%

Interest rate (30-year)6.375%

Monthly rent

Use the market rent an appraiser would expect.

Property taxes per year

From the listing or the county.

Insurance per year

Landlord or hazard policy.

HOA dues per month

Enter 0 if there are none.

Does the rent cover it?

The rent covers the payment with $778 a month to spare.

Monthly rent: $3,200
Principal & interest: $1,872
Taxes, insurance & HOA: $550
Total monthly payment: $2,422
Loan amount: $300,000
Down payment: $100,000

See if you pre-qualify

Estimates only, based on a 30-year loan. Lenders use the appraiser’s market rent, and your actual rate, taxes and insurance may differ. Not a commitment to lend.

How lenders compare the rent and the payment

A DSCR lender asks one question: does the property pay its own way? To answer it, they compare the monthly rent with the full monthly payment, meaning principal and interest plus property taxes, insurance and any HOA dues.

Take a $400,000 rental bought with 25% down. The $300,000 loan at 6.375% over 30 years costs about $1,872 a month in principal and interest. Add $400 a month in taxes and $150 in insurance, and the full payment is about $2,422. If the property rents for $3,200, the rent covers the payment with about $778 a month to spare.

Lenders work from the appraiser’s estimate of market rent, not only the current lease, so use a realistic figure.

How to close a shortfall

Put more down. A smaller loan means a smaller monthly payment.
Shop the rate. Even a small change in the rate moves the payment.
Check the costs. Taxes, insurance and HOA dues are part of the payment, so a better insurance quote helps.
Use the market rent. If the current lease is below market, the appraiser's rent estimate may be higher.
Talk it through. A loan officer can walk through the structure options with you on a short call.

FAQ

DSCR calculator questions

The lender compares the property's monthly rent with its full monthly payment: principal, interest, taxes, insurance and any HOA dues. If the rent covers the payment, the property supports the loan. Your personal income isn't part of the test.

Ready to fund your next deal?

Tell us about the property and we will come back to you with options — usually within 24 to 48 hours.

Apply Now +1 (347) 680-6800