April 29, 2026 · Nate Jones, NMLS #304056
What Rate Do I Need on a DSCR Loan to Qualify?
The minimum DSCR ratio for most programs — and what threshold gets you the best pricing.
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What People Ask
What DSCR ratio do I need to qualify for a DSCR loan?
Most DSCR lenders require a minimum DSCR of 1.0 — meaning the property's gross monthly rent at least covers the mortgage payment (PITI). Some programs go down to 0.75 with a higher down payment or stronger credit. The best rates and terms kick in at DSCR 1.25 and above.
How is the DSCR ratio calculated?
DSCR = gross monthly rent ÷ PITI (principal, interest, taxes, insurance, plus HOA if applicable). A property renting for $3,000/month with a $2,400 PITI has a DSCR of 1.25. Lenders use market rent from a 1007 appraisal, not just your lease, so a low lease won't sink you if comps are strong.