EN
ESWhat DSCR measures
Debt service coverage ratio compares qualifying rental income with the housing payment defined by the program. The lender’s method may differ from your own net cash-flow analysis.
Qualifying is not the same as profitability
Vacancy, repairs, management and other operating expenses affect real cash flow. A loan approval does not mean an investment will be profitable.
Details drive the options
Credit, leverage, rent documentation, property type and reserves still matter. Some programs include prepayment penalties. Ask how the proposed loan fits your planned holding period and exit strategy.
Let’s start with these details.
- Property address and purchase price
- Current lease or expected rent
- Taxes, insurance and HOA costs
- Ownership structure and investment timeline
Educational overview only. Program requirements, availability and terms vary. No guarantee of qualification or approval. For additional consumer guidance, see the CFPB homebuying resources.