Why agents care
Investors using DSCR financing judge listings by this ratio. Showing it, with realistic rents, signals you understand investor financing and helps them decide quickly.
Glossary term
DSCR (debt service coverage ratio)
Debt service coverage ratio compares a property's rental income with its debt payments. For residential DSCR loans, it's typically monthly rent divided by PITIA. A ratio above 1.0 means rent covers the payment. DSCR loans qualify investors on the property's income rather than their personal income.
Example
Example: $2,800 monthly rent against a $2,450 PITIA payment gives a DSCR of about 1.14.
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Questions by topic
DSCR (debt service coverage ratio): common questions
What DSCR do lenders require?
Often around 1.0 to 1.25, varying by lender and program.
Do DSCR loans check personal income?
Typically not for qualifying, though credit, reserves and experience matter.
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