DSCR calculator.

Understanding DSCR

DSCR (Debt Service Coverage Ratio) is the primary qualification metric for DSCR investment property loans. It measures whether the property's rental income covers the total housing payment.

DSCR Formula: Gross Monthly Rent ÷ PITIA (Principal + Interest + Taxes + Insurance + HOA).

DSCR guidelines

• DSCR ≥ 1.25: Strong qualification — best rates and terms
• DSCR 1.0–1.24: Qualifies on most DSCR investors — standard pricing
• DSCR 0.75–0.99: "No-ratio" DSCR programs available on select investors — higher rate, typically 25%+ down
• DSCR < 0.75: Most DSCR investors decline; conventional investor financing or portfolio loan may be a better option

Why investors choose DSCR

DSCR loans don't use your personal income (no W-2s, no tax returns). Qualification is based entirely on the property's income-to-payment ratio. This makes DSCR ideal for:

• Self-employed investors who write off income
• W-2 earners with too many properties to qualify conventionally
• LLC investors building a rental portfolio
• Short-term rental investors (Airbnb/VRBO) — AirDNA projections accepted on select investors

Tayton Capital originates DSCR loans in Colorado, Florida, and 34 additional states. We calculate DSCR at intake and identify the right investor based on property type, LLC vesting, loan amount, and ratio.

Related: DSCR loan details · DSCR loans across 36 states · Investment property loans Florida