The formula
DSCR = monthly rent ÷ PITIA.
PITIA is principal, interest, taxes, insurance, and HOA (or similar association dues). Some lenders add flood or wind insurance into that bucket.
Example only: if rent is $3,000 and PITIA is $2,000, DSCR is 1.50. That example uses round numbers so the math is easy to see. It is not a quote, not your payment, and not an approval.
Which “rent” the lender uses
Long-term rentals often use the lease or the appraiser’s market rent, whichever rule that lender wrote down. Short-term rentals may use 12 months of platform statements, an occupancy haircut, or market rent from the appraisal.
That is why two calculators can show two ratios on the same house. Our on-site calculator only divides the numbers you type. It does not choose a rent method for you.
What DSCR does not do
It does not replace credit, reserves, or property eligibility. It does not mean “no underwriting.” It usually means the lender is not underwriting your personal tax returns as the income.
It also does not produce a rate or a monthly payment on this website. If you already have a PITIA figure from your own worksheet, you can enter it. We will not generate one from a rate.
LLC borrowers
Many DSCR programs let you hold title in an LLC. Members still sign guarantees the lender requires, and you still produce entity documents. Tell us the entity name on the first call so the application is set up correctly.
This is not a commitment to lend. All loans subject to credit approval, underwriting guidelines and property eligibility. Programs and guidelines are subject to change without notice. Liberty Group Funding, Inc. is a mortgage broker and does not make loans directly.