DSCR Loan Calculator
Estimate your maximum loan amount based on a property's rental income, not your personal income. Built for Arizona investors financing rental property through Bonelli Financial Group.
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A Debt Service Coverage Ratio (DSCR) loan qualifies you based on a rental property's income rather than your personal tax returns or W-2s. Lenders compare the property's monthly rental income to its monthly debt obligation (principal, interest, taxes, insurance, and HOA if applicable) to calculate the DSCR.
A DSCR of 1.0 means the property's rental income exactly covers its debt payment. Most Arizona lenders look for a DSCR of 1.15 to 1.25 or higher, meaning the property generates more income than its monthly obligation, giving the lender a cushion.
How to Use This Calculator
- Monthly Gross Rent — the property's expected or actual rental income before expenses.
- Other Monthly Expenses — property management, HOA, or other recurring costs not already covered by the loan payment itself.
- Target DSCR — the ratio you're solving for. Use 1.0 for breakeven, or a lender's minimum requirement (commonly 1.15–1.25) for a more realistic estimate.
Frequently Asked Questions
What DSCR do I need to qualify?
Most DSCR loan programs require a minimum ratio between 1.0 and 1.25, though some programs allow DSCR as low as 0.75 with a larger down payment or reserves. Requirements vary by lender and loan program.
Do I need to show personal income for a DSCR loan?
No. DSCR loans are qualified based on the property's rental income, not the borrower's personal income, tax returns, or employment history. This makes them a common choice for self-employed investors and those scaling a rental portfolio.
Can I use projected rent instead of actual rent?
Yes, for purchase transactions, lenders typically use a market rent estimate from the appraisal. For refinances of an already-rented property, actual lease income is generally used.
Are DSCR loan rates higher than conventional loans?
Generally yes. DSCR loans typically carry a modest rate premium compared to conventional owner-occupied financing, reflecting the investment property risk profile and reduced income documentation.
