DSCR Loan Calculator
Powered by Ziffy Mortgage
$
%
Loan Amount
$300,000
LTV Ratio
75%
$
How Lenders Determine Rent
Lenders use the lower of market rent (appraiser’s Form 1007/1025) or the in-place lease. Vacant properties use appraiser’s concluded market rent. Some programs apply a vacancy factor (e.g., 5%).
PITIA = Principal + Interest + Taxes + Insurance + Association dues. This is the denominator in the DSCR calculation.
$
$
$
Monthly P&I Payment
$2,048
Monthly Taxes
$400
Monthly Insurance
$200
Monthly HOA
$0
Total Monthly
PITIA
$2,648
✓
Qualifies for DSCR Loan
Debt Service Coverage Ratio
1.21
$3,200 rent ÷ $2,648 PITIA
Poor (<0.75)
Fair (0.75-1.0)
Good (1.0-1.25)
Excellent (>1.25)
PITIA Breakdown
Principal
$565
Interest
$1,483
Taxes
$400
Insurance
$200
PITIA
$2,648
Loan Qualification Factors
DSCR Ratio
PASS
1.21
Min: 1.0 (1.25+ preferred)
LTV Ratio
PASS
75%
Max: 80% (75% typical)
Monthly Cash Flow
PASS
$552
Rent minus PITIA
Annual Cash Flow
PASS
$6,624
Before OpEx reserves
Additional Metrics
Loan Amount
Total loan amount based on property value and
down payment percentage.
$300,000
Monthly Payment
Total monthly PITIA payment (Principal +
Interest + Taxes + Insurance + Association dues).
$2,648
Gross Yield
Annual gross rent divided by property value.
Quick screening metric for rental properties.
9.6%
P&I Only
Monthly principal and interest payment only
(excluding taxes, insurance, HOA).
$2,048
Down Payment
Cash required upfront based on down payment
percentage.
$100,000
Price per $1 Rent
Property price divided by monthly rent. Lower
is better. Similar to GRM but inverted perspective.
$125
What-If Scenarios
Calculate rent needed or max loan at different DSCR thresholds
To achieve DSCR
1.00
Min rent: $2,648
To achieve DSCR
1.25
Min rent: $3,310
At current rent
Max Loan
$324,000 @ 1.0 DSCR
Typical DSCR Loan Requirements (2025)
Minimum DSCR
1.0 – 1.25
Credit Score
620+ (700+ for best rates)
Down Payment
20-25% typical
Max LTV
75-80%
Cash Reserves
2-6 months PITIA
Interest Rates
6.12% – 8.5%
