How is the DSCR ratio calculated on a rental loan?
DSCR equals the property's monthly rent divided by its full monthly housing payment — principal, interest, property taxes, insurance and HOA dues, often abbreviated PITIA. A property renting for $3,000 with a $2,400 payment has a DSCR of 1.25; at $2,400 of rent it is exactly 1.00. The rent used is the in-place lease or the appraiser's market rent, whichever the program allows, and the payment is calculated at the loan's actual rate over a 30-year amortization. At Silt the floor is 1.00, and files clearing 1.05 and 1.25 price better. Because the rate sits inside the payment, the same property can clear one band at one rate and miss it at another, which is why the ratio should be rerun whenever rates move. Lowering the loan amount, buying down the rate or appealing the tax bill all raise the ratio.
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Last reviewed 19 October 2026 · Terms are illustrative, not a commitment to lend; every loan is subject to underwriting.