Find your Debt Service Coverage Ratio (DSCR) — how comfortably income covers debt obligations.
DSCR: Net operating income ÷ Total debt service
What DSCR do lenders typically require?
Most commonly at least 1.2 to 1.25, though this varies by lender and loan type — a higher DSCR generally means easier loan approval and potentially better terms, since it signals a larger safety margin.