How to read your result
Your DSCR ratio is monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance, and HOA). It's the single number DSCR loan programs qualify you on:
- 1.25 or higher — strong coverage. The rent covers the payment with room to spare, which most programs love.
- 1.00 – 1.25 — meets many program minimums. Guidelines vary — some programs target 1.0, others higher.
- 0.75 – 1.00 — below most minimums. A larger down payment or a lower rate could push you over.
- Below 0.75 — unlikely to qualify on cash flow alone. Compensating factors (strong reserves, large down payment) may still matter.
Watch the PITIA, not just the P&I. Taxes and insurance can move a ratio by tenths — and tenths decide approvals.
Authoritative sources
- Consumer Financial Protection Bureau — mortgage consumer tools
- CFPB Ask CFPB — mortgage questions answered
Program minimums are set by individual investors, not by regulation — confirm current guidelines before making an offer.
Related NonQM Rates resources
- DSCR Investor Loans — how DSCR loans work
- 5–8 Unit DSCR — coverage ratios on small multifamily
- No-Ratio Loans — for investors who don't meet ratio minimums
- Bank Statement Income Estimator — estimate qualifying income from deposits
- Payment Scenario Comparator — compare loan terms side by side
- DSCR ratio requirements — Q&A on program minimums
- What is a Non-QM loan? — Q&A
- What Is a DSCR Loan? — the investor's guide
Reviewed by Vision One Mortgage, Inc. · NMLS #7861 · Last reviewed: October 2026
Get a real scenario review. A ratio on a calculator isn't a pre-approval — check your eligibility in 60 seconds or call 949-241-9489. NMLS #7861.
Guidelines change. DSCR minimums, reserve requirements, and eligible property types vary by investor and are updated regularly. This page is educational — confirm current guidelines with us before making an offer.
