Debt Service Coverage Ratio

DSCR

Guidelines

     Monthly Gross Rent divided by Monthly Principal, Interest, Taxes, Insurance and HOA Fees (PITIA)
         

DSCR Down to 0.80

    740 and above OR 680 and above 
1. 3 morgages in the past seven years with at least 12 
    months of payment history
2. No mortgage lates in the past 36 months.
3. Available for single unit SFRs only
4. Minimum reserve: 12 months PITIA
5. Does not apply to Portfolio Loans

1. ​ Properties valued below $250,000: minimum DSCR
    is 1.2  (ie: Mo. rent $1,000 PITIA max is $833.00) 

2. Properties valued over $250,000: minimum DSCR is
    1.0  (ie: Mo. rent $1,000 PITIA max is $1,000.00) 

​3.  2-4 unit multi family DSCR is 1.3 - 1.4

Lease Income

       Lease income lessor of lease agreement or rent survey (Form 1007 or 1025) with documentation required.  PITIA is       calculated at initial rate  

Example 

                  MLS Listing Agent  Comments
 
​3 bedroom, 2 bath single-family home in the heart of the Brooklyn Arts District. Remodeled in Fall 2017. Open floor plan with new premium laminate floors, a sizable 2nd floor master bedroom with walk-in closet and front & rear back porches. Stainless steel appliances. Recently painted with newer carpet. New hot water heater. Fenced in backyard. Just 2 blocks away from Brooklyn Arts nightlife and 4 blocks to the Historic Downtown and River Walk. Rental history available.