Debt service coverage ratio on a rental, the rent each lender tier needs, and the largest loan the rent supports.
Rent covers this loan's full payment 1.28N2 times. It still clears the 1.00 minimum if rent falls by $522N3 a month.
Plan K-07Gross rent ÷ PITIA, the way most DSCR lenders qualify one to four units. Estimates, not a loan offer.
Rent covers this loan's full payment 1.28 times. It still clears the 1.00 minimum if rent falls by $522 a month.
The same $225,000 loan, tested against the common minimums
| Minimum DSCR | Rent needed | Largest loan | Your deal |
|---|---|---|---|
| 1.00 | $1,878 | $304,447 | Clears |
| 1.10 | $2,066 | $271,235 | Clears |
| 1.20 | $2,254 | $243,558 | Clears |
| 1.25 | $2,348 | $231,380 | Clears |
| 1.50 | $2,817 | $182,668 | Short $417 |
Same rent and costs, tested against your 1.00 minimum. Figures that clear it print in green.
| Down payment | 6.375% | 6.875% | 7.375% | 7.875% |
|---|---|---|---|---|
| 20% | 1.26 | 1.21 | 1.17 | 1.12 |
| 25% | 1.33 | 1.28 | 1.23 | 1.18 |
| 30% | 1.40 | 1.35 | 1.30 | 1.25 |
| 35% | 1.48 | 1.43 | 1.37 | 1.32 |
| 40% | 1.58 | 1.52 | 1.46 | 1.41 |
Estimates for education only, not a loan offer. DSCR programs differ on the minimum ratio, the rent they count, reserves, credit score, and prepayment penalties. Confirm the method with your lender.