DSCR (debt service coverage ratio) loans are the go-to financing tool for investors who don't want to qualify based on their personal income — the property's own rental income qualifies the loan instead. This calculator estimates your DSCR and shows where you land against the thresholds most lenders use.

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How to read your DSCR

DSCR is simply monthly rental income divided by the property's monthly PITIA (principal, interest, taxes, insurance, and HOA/association dues). A ratio of 1.00x means the rent exactly covers the debt payment; above 1.00x means the property cash flows on paper before accounting for vacancy, maintenance, or management.

Most DSCR lenders want to see at least 1.00–1.25x, with the best pricing typically reserved for 1.25x and above. Deals below 1.00x aren't automatically dead — some programs still work with a rate adjustment or larger down payment, it's just a tougher conversation.

Why investors like DSCR loans

No tax returns, no personal debt-to-income calculation, and no cap on how many properties you can finance this way — that's why DSCR loans have become the standard tool for buy-and-hold investors scaling a portfolio.

Winner Realty works with investors across Louisville and the surrounding counties, from a first rental to a growing portfolio. Tell us about your deal and we'll connect you with our lending partners for real DSCR terms.

Frequently asked questions

Is a DSCR loan the same as a hard money loan?

They're related but different. Hard money loans are typically short-term, higher-rate bridge financing for a purchase or renovation. DSCR loans are usually longer-term (often 30-year) investor financing meant to be held, priced off the property's income rather than a fix-and-flip timeline.

What counts as "rent" if the property isn't leased yet?

Lenders typically use an appraiser's market rent estimate for a vacant or owner-occupied property being converted to a rental, rather than a lease that doesn't exist yet.