Confirm DSCR Rules
Understand lender DSCR expectations and run quick calculations for your property. Educational only — confirm specifics with your broker/lender.
What is DSCR?
Debt Service Coverage Ratio (DSCR) compares a property’s Net Operating Income (NOI) to its annual debt payments. DSCR = NOI ÷ Annual Debt Service. A DSCR of 1.20 means the property produces 20% more income than required to cover the debt. Lenders often set a minimum DSCR and may stress test the interest rate to ensure resilience.
- For many 1–4 unit rentals, lenders still rely on GDS/TDS + rental offset/add-back.
- For multiplex / small commercial (often 5+), DSCR-based underwriting is common.
- Policies vary by lender/product/insurer and can change — confirm specifics for your file.
Quick DSCR Check
$
$
DSCR:
0.00x
Threshold:
1.20x
Status:
Below threshold
Headroom:
0.00% vs. selected threshold
For decisions, lenders may apply a stress interest rate and different NOI adjustments.
Max Loan by DSCR (estimates)
$
%
%
Rate used:
6.00%
Max annual debt service:
$0
Max loan (approx.):
$0
Indicative only; actual loan sizing may also cap by LTV, borrower strength, market, and program rules.
Lender / Program Snapshot (edit as needed)
Segment
Typical min DSCR
Notes
Segment
Typical min DSCR
Notes
Segment
Typical min DSCR
Notes
What to confirm with your lender
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Next steps & helpful tools
- Analyze your multiplex: Deal Analyzer
- Check affordability & payments: Affordability & Stress Test • Mortgage Payment Calculator
- Work with us: Client portal • Planning session
This page is educational and general. Lender rules and underwriting policies vary and change. Confirm specifics with your broker/lender and professional advisors.