Debt Service Coverage Ratio (DSCR)
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.
What DSCR measures
The debt service coverage ratio compares a rental's income to its loan payment. A DSCR of 1.25 means the rent covers the payment plus 25% more.
It is the key number for a DSCR investor loan.
Why it matters
A DSCR loan qualifies on the property's cash flow, not your personal income. That lets investors scale faster.
We run DSCR numbers on any Florida rental. Reach out and we will see if it qualifies.
Related program: Learn more →
Verify the details for your own situation against these government and agency sources: CFPB Owning a Home guide and HUD homebuyer resources.