What Does DSCR Mean? | The 2 Mortgage Guys

DSCR is Debt Service Coverage Ratio—gross rent divided by PITIA. See sample ratios and how lenders use the number on Indiana investor loans.

What Does DSCR Mean? | The 2 Mortgage Guys

DSCR is Debt Service Coverage Ratio—gross rent divided by PITIA. See sample ratios and how lenders use the number on Indiana investor loans.

What Does DSCR Mean?

Debt Service Coverage Ratio Explained

Sample DSCR Ratios

How Lenders Use the Number

Keep Exploring

Frequently Asked Questions

Run Your DSCR Before You Offer

DSCR — Debt Service Coverage Ratio — tells lenders whether a rental earns enough to cover its mortgage payment. One number drives most investor loan decisions.

The formula

DSCR =

Gross Monthly Rent

Total Monthly PITIA

PITIA includes principal, interest, property taxes, homeowners insurance, and HOA dues when applicable. It is the full housing cost the lender expects the rent to cover.

Think of DSCR as a coverage test. A 1.0 ratio means rent exactly equals the payment. A 1.25 ratio means rent is 25% higher than PITIA — extra cushion for vacancies or maintenance.

Below 1.0, the property does not fully cover its housing cost on paper. Some programs still allow sub-1.0 ratios with compensating factors; others require you to improve rent, put more down, or choose a different product.

Guidelines vary by investor. This page is educational — we confirm your ratio against live program rules before you commit to a deal.

Illustrative examples — your property's numbers will differ based on taxes, insurance, rate, and rent source.

Rent:

PITIA:

DSCR is the primary qualifying metric on many investor loans — but it is not the only one.

Related DSCR guides and investor resources from Ryan & Steve.

2MG Daily

Recent articles on DSCR financing, rental investing, and Indiana market insights.

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Use our calculator or talk with Ryan & Steve to confirm your property clears investor minimums.

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