Free DSCR Loan Calculator
Calculate your debt service coverage ratio instantly. See if your rental property qualifies for a DSCR loan — no W-2 required.
Tell Freddie about your rental property:
What you get — free
DSCR Calculation
Instant ratio calculation: monthly rent ÷ PITIA. See your number and whether it clears the 1.20 threshold.
Qualifying Rent Analysis
See exactly what rent you need to qualify at your purchase price and down payment.
Full Loan Scenario
Model different rates, LTVs, and down payments to find the qualifying structure.
Deal Score 0–100
Freddie grades the overall rental deal — DSCR is one factor in the comprehensive score.
Lender Match
Freddie connects you with DSCR lenders in your market via Deal Blast.
Free Forever
DSCR analysis permanently free. No credit card required.
When DSCR didn't work — and a 30-day wholetail did instead
On this Northern Virginia hoarder house, we ran the DSCR math. At $210K purchase with a 20% down DSCR loan at 7.8%, the monthly payment (PITIA) was around $1,680. Market rent for the area was $2,100–$2,300. DSCR of approximately 1.25 — technically qualifying, but thin. After management, vacancy, and maintenance, cash flow was negative. The DSCR loan would have financed a money-losing rental. We skipped it, did a cash wholetail, and walked away with $115,050 in 30 days. Freddie scored it 100/100.
We sold the property as-is for $349K. The renovation pictured was completed by the buyer who purchased it from us. The $115,050 profit reflects our wholetail exit, not the renovation work.
Freddie scored the wholetail 100/100. DSCR qualifying doesn't mean the rental makes sense. Run both scenarios — the calculator picks the winner.
"DSCR loan lesson: qualifying for the loan and the rental being a good deal are two different things. Always run the full cash flow analysis — not just the ratio."
DSCR Loan FAQ
What is a DSCR loan?
A DSCR (Debt Service Coverage Ratio) loan qualifies borrowers based on rental income rather than personal income. Lenders compare the property's monthly rent to the monthly mortgage payment. No W-2 or tax returns required — ideal for self-employed investors.
How do I calculate DSCR?
DSCR = Monthly Rental Income / Monthly Debt Service (PITIA — principal, interest, taxes, insurance, and HOA). A DSCR of 1.0 means rent exactly covers the payment. Most lenders require 1.20 or higher.
What DSCR do lenders require?
Most DSCR lenders require a minimum ratio of 1.20–1.25, meaning rent must be 20–25% higher than the full monthly payment. Some lenders will go to 1.0 (break-even) with a larger down payment or lower LTV.
What LTV is available for DSCR loans?
DSCR loans typically offer 75–80% LTV on single-family rentals. Some lenders go to 80% on strong DSCR (1.25+). On multifamily (2–4 units), LTV is usually 70–75%. Rates run 1–2% higher than conventional.
Can I use a DSCR loan for a flip?
No. DSCR loans are for buy-and-hold rental properties only. They require a tenant lease or market rent documentation to underwrite. For flips, hard money or private money is the appropriate financing.
Does FreeDealCalc connect me with DSCR lenders?
Yes. FreeDealCalc partners with WCP Loans and New Silver, both of which offer DSCR loan products. Submit your deal through Deal Blast and our team will connect you with the right lender.
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