06/22/2026
Demystifying the DSCR Ratio
When it comes to building a rental portfolio, understanding your Debt Service Coverage Ratio (DSCR) is key to unlocking the best financing options. Here is exactly what the lenders look for:
🟢 DSCR > 1.25: Strong positive cash flow. You are an excellent loan candidate qualifying for top-tier rates.
🟡 DSCR 1.0 – 1.25: Solid qualifying scenario. The property comfortably covers its obligations with a healthy margin.
🔴 DSCR < 1.0: The property's income doesn't fully cover the debt service. This simply means it requires compensating factors or a more creative discussion.
No matter where your current target property lands on the scale, there is a strategy to get it funded.
Let's Run Your Numbers
Call Hard Money Global at 877-344-HARD to analyze your next deal.