What DSCR ratio do I need to qualify?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Most DSCR programs want a ratio of 1.0 or higher, meaning rent at least covers the payment. Some lenders go below 1.0 — even to 0.75 — with a larger down payment, and the best pricing usually starts around 1.25.
A short-term rental's projected income can sometimes push the ratio higher. We'll match your property's ratio to the program with the best rate and down payment.
The typical threshold
Most lenders want a DSCR of at least 1.0, meaning the rent fully covers the mortgage payment. Many prefer 1.25 for the best rates, showing the rent comfortably exceeds the payment.
A ratio of 1.0 breaks even. A ratio of 1.25 means the rent brings in 25% more than the payment.
Options below 1.0
Some lenders allow a DSCR under 1.0, even down to 0.75, if you put more money down or accept a higher rate. That helps in pricey markets where rents lag payments.
We know which lenders flex on DSCR. Reach out and we will find one that fits your property's numbers.