How the DSCR loan calculator works
Enter the property, the rent, and the annual taxes and insurance. The calculator applies current rental loan pricing to find the largest loan that both the property value and the rent support, then shows the 30-year rate options, the monthly payment, the DSCR, and how much cash you’ll need at closing or receive from a cash-out refinance.
Still buying and renovating? Use the hard money loan calculator for the purchase and rehab, then come back here to size the refinance. Building a rental from the ground up? Try the construction loan calculator.
What moves a DSCR loan rate
Credit score and leverage set the base rate: a 760 score at 65% loan-to-value prices well below a 680 score at 80%. Prepayment penalty is the next biggest lever. Loan size, property type, and interest-only payments fine-tune the result. Cash-out refinances and condos price a little higher; larger loans price a little lower.
Frequently asked questions
What is a DSCR loan?
A DSCR loan is a 30-year mortgage for investment properties that qualifies on the property’s rent instead of your personal income. No tax returns or pay stubs are needed. The lender divides the monthly rent by the monthly payment (principal, interest, taxes, insurance, and HOA). That ratio is the debt service coverage ratio, or DSCR.
What DSCR do I need?
Most rental lenders want a DSCR of at least 1.00, meaning the rent covers the full payment. If the rent supports a smaller payment than the maximum loan would require, the calculator lowers the loan amount until the DSCR works.
What are current DSCR loan rates?
At current industry rates, 30-year fixed DSCR loans run from about 7% for strong credit, 70–75% leverage, and a 5-year prepay, to over 8.5% for lower scores, high leverage, or no prepay. Origination is typically 1.5 to 2.5 points. Each quote in this calculator shows three rate and points combinations.
How much can I borrow on a rental property?
Up to 80% of the purchase price or appraised value on a purchase or rate-and-term refinance with strong credit, and up to about 75% on a cash-out refinance. Lower credit scores, condos, foreign nationals, and properties with thin rent coverage get less.
Why does the prepayment penalty change my rate?
DSCR lenders price loans to be held for several years. A prepayment penalty (for example, 5-4-3-2-1% of the balance over five years) lowers the rate. Choosing no prepay costs about a point more. Some states restrict prepayment penalties; the calculator applies those rules automatically.
Can I refinance out of a hard money loan with a DSCR loan?
Yes. That is the classic BRRRR exit: buy and renovate with a hard money loan, lease the property, then refinance into a 30-year DSCR loan based on the new appraised value. Choose “Refinance” and enter your hard money payoff to see whether the new loan covers it.
Ready to lock it in? Request a free quote.
Estimates are for planning only and are not a commitment to lend.