What DSCR measures
DSCR means debt service coverage ratio. A program generally compares eligible property income with specified housing expenses, but lenders may define both sides of the calculation differently.
There is no universal DSCR threshold or formula for every lender.
What may count as rent and expense
The lender may use a lease, appraisal market-rent schedule or another permitted source. Taxes, insurance, association charges and mortgage payments may be included in the expense measure.
Short-term-rental projections, seller estimates and online revenue screenshots are not automatically acceptable.
The borrower is still reviewed
A property-focused calculation does not eliminate underwriting. Credit, assets, reserves, experience, appraisal, title, entity structure and transaction purpose may affect eligibility and terms.
These products are generally intended for eligible non-owner-occupied, business-purpose transactions.
Example without a promise
If a lender recognizes $2,500 in monthly rent and $2,250 in qualifying housing expense, its simple ratio would be about 1.11. Another program may define rent or expense differently and reach another result.
Use the selected program’s written calculation for borrower-specific planning.