Mortgage Glossary
Debt Service Coverage Ratio (DSCR)
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Debt service coverage ratio (DSCR) compares a rental property's income to its debt payments, qualifying investors on the property rather than personal income.
What Debt Service Coverage Ratio (DSCR) means
A DSCR of 1.0 means rent exactly covers the payment; 1.25 means it covers 125%. Most Florida DSCR loans want a ratio of 1.0 or higher with 20–25% down.
Florida example
A Florida investor buys a rental that brings $2,500 a month against a $2,000 payment, a 1.25 DSCR. They qualify on that ratio without showing tax returns or personal income.
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