Debt Service Coverage Loans | DSCR
What is the Debt-Service Coverage Ratio (DSCR)?
The Debt-Service Coverage Ratio (DSCR) is a financial metric used by lenders to assess a borrower's ability to repay a loan. It evaluates this by comparing the property's monthly rental income to its monthly debt obligations.
How is DSCR Calculated?
DSCR provides a simplified measure of cash flow. For residential properties, it is calculated by dividing the monthly rental income by the total monthly debt obligations, which include principal, interest, taxes, insurance, and association dues (collectively referred to as PITIA).
Debt Service Coverage Ratio Calculator
Total Monthly Payment: $0.00
Debt Service Coverage Ratio (DSCR): 0.00
Program Highlights
DSCR = Gross Income divided by PITIA / ITIA
Max loan amount $3,500,000
1 – 4 family properties and condominiums permitted
85% LTV for Purchase, Rate and Term Refi
75% LTV for Cash-Out
Down to 620 FICO
Non-Warrantable Condos OK
Investment Properties only
Gift Funds allowed
No limit on Financed Properties
Leasehold properties are eligible
Short term rentals! Airbnb, VRBO, Purchase, Rate and Term Refi, Cash Out
DSCR 5-8 Unit Residential Loans
Purchase, Rate and Term and Cash-Out
Residential 5 - 8 Units
Occupancy: Investment
$2 Million Max Loan Amount
Min FICO 680
15 -YR Fixed, 30 -YR Fixed
Minimum DSCR ≥ 1.00
States
I Serve All The States In Dark Blue
© 2025 Ultimate Home Lending. All rights reserved
.Ultimate Home Lending
. - NMLS #2259749 | | #1326345
.
Notice To Texas Loan Applicants: Consumers wishing to file a complaint against a mortgage banker, or a licensed mortgage banker residential mortgage loan originator, should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, TX 78705. Complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov
.
A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed mortgage banker residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.sml.texas.gov
Website Designed and Powered By - ReplicateU