CalculateRealEstateROI

Financing

How do DSCR loans qualify the borrower?

On the property's debt service coverage ratio (typically ≥1.20), not personal income.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

On the property's debt service coverage ratio (typically ≥1.20), not personal income.

Expanded explanation

Lender computes NOI ÷ debt service. No tax returns, no W-2. Cash to close + credit score + DSCR threshold = approval.

Examples

  • $1,500 rent → ~$1,250 debt service → 1.20 DSCR.

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