Who this is for
Investors, LLC borrowers, and people buying or refinancing long-term or short-term rentals. If you want the unit’s cash flow to carry the file — not your W-2 — DSCR is the conversation.
It is not a primary-home shortcut, and it is not “no underwriting.” Credit, assets, and the property still matter. Personal income and employment are usually not the qualifying income.
How DSCR is calculated
Monthly rent ÷ PITIA. PITIA is principal, interest, taxes, insurance, and HOA. Lenders may use lease rent, market rent from an appraisal, or a haircut on short-term income.
Example only: $3,000 monthly rent ÷ $2,000 PITIA = 1.50 DSCR. Round numbers, labeled example only — not a quote and not your payment.
Minimum ratios vary by lender, occupancy of the units, and how rent is documented. We will not post a floor that may be wrong for your property.
Purchase, refinance, cash-out, and LLCs
Many lenders allow purchase, refinance, and cash-out on investment property. Closing in an LLC is common, with personal guarantees from the members the lender names. Entity documents become part of the file.
Property types we see most: single-family, condo, townhouse, 2-4 unit, short-term rental.
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.
DSCR calculator
This tool only divides monthly rent by the housing costs you type. It does not quote a rate, APR, payment, or loan term. For illustration only.
Enter rent and housing costs to see a ratio.
Worked example (example only): monthly rent $3,000 ÷ PITIA $2,000 = 1.50 DSCR. Lenders may count rent and vacancy differently. Figures on this page are for illustration only. They are not a rate, APR, payment, or loan quote.