DSCR Loan Calculator for Rental Properties

Q: How is DSCR calculated?

DSCR equals monthly rent divided by monthly PITIA (principal, interest, taxes, insurance, and HOA dues). For example, $2,600 rent divided by a $2,489 payment is a 1.04 DSCR.

Q: How much down payment is required?

Most DSCR loans require roughly 20 to 25 percent down, depending on your DSCR, credit, and the property. A larger down payment can help offset a lower DSCR.

Q: What property types qualify?

Single-family rentals, condos, townhomes, and 2 to 8 unit properties. KNB Capital lends on investment properties in 32 states.

Qualify on your property's rent — not your tax returns. KNB Capital lends on 1–8 unit investment properties in 32 states.

How a DSCR loan works

A DSCR loan (debt-service coverage ratio loan) is an investment-property mortgage that qualifies you on the property's rental income — not your personal income, tax returns, or W-2s. The lender divides the home's monthly rent by its monthly payment (principal, interest, taxes, insurance, and any HOA dues — "PITIA"). That number is your DSCR: a 1.00 means the rent exactly covers the payment, and anything above 1.00 means the property cash-flows. KNB Capital arranges DSCR financing for 1–8 unit rental properties across 32 states, for first-time and seasoned real-estate investors alike. Use the calculator above to see your DSCR instantly, then get your exact rate.

DSCR loan FAQs

What is a DSCR loan?

A DSCR loan is a mortgage for a rental or investment property that qualifies on the property's income instead of your personal income. There's no tax-return or employment verification, which makes it ideal for self-employed investors and anyone building a rental portfolio.

How is DSCR calculated?

DSCR = monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance, and HOA dues). For example, $2,600 in rent ÷ a $2,489 payment = a 1.04 DSCR. Use the calculator above to see your number instantly.

What DSCR do I need to qualify?

Many DSCR programs start at a 1.00 ratio, and some allow ratios below 1.00 — down to around 0.75 — or even "no-ratio" structures with a larger down payment. A higher DSCR generally earns better pricing.

Do I need tax returns or income documentation?

No. Because qualification is based on the property's rent, DSCR loans typically don't require tax returns, pay stubs, or W-2s.

How much down payment is required?

Most DSCR loans require roughly 20–25% down, depending on your DSCR, credit, and the property. A larger down payment can help offset a lower DSCR.

Can I close in an LLC?

Yes. DSCR loans are business-purpose loans and can usually be vested in an LLC — a common choice for investors holding rental property.

What property types qualify?

Single-family rentals, condos, townhomes, and 2–8 unit properties. KNB Capital lends on investment properties in 32 states.

Can interest-only payments help me qualify?

Yes. An interest-only payment lowers your monthly PITIA, which raises your DSCR. Toggle "Interest-only" in the calculator to see the difference.