DSCR mortgage program allows your clients to qualify based on rental analysis to determine property cash flow. No personal income required to qualify. This saves you from submitting complicated income statements and tax returns.

The debt service coverage ratio (DSCR) is a ratio of a property’s cash flow to its annual mortgage debt. This includes principal, interest, taxes, insurance, and HOA fees in the mortgage debt. The ratio is calculated by taking the expected rental payment and dividing it by the annual mortgage debt RDP (Rent Divided PITIA= DSCR).

Example Rent Divided PITIA (RDP)
$1100 Rent / $1000 PITIA = 1.10% DSCR Positive Cash Flow
$1100 Rent / $1100 PITIA = 1.00% DSCR 1 to 1 Break Even
$1000 Rent / $1100 PITIA = .90% DSCR Negative Cash Flow

These terms and requirements are subject to change.

Contact and set up a schedule with Michael Parsi for free evaluations and consultations.

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