Why is my loan limited by the rent and not the LTV?

In high-price, lower-yield markets like much of California, the rent often supports less debt than an 80% loan would need. When that happens the ratio, not the LTV cap, sets the loan, and a larger down payment, a lower rate or an interest-only option closes the gap.

What maximum LTV do DSCR lenders allow?

Purchases typically go to 75% or 80% loan-to-value, cash-out refinances to about 70% to 75%, and lower credit scores or ratios under 1.0 usually mean lower limits. Programs differ, so treat 80% as a typical ceiling rather than a promise.

Does an interest-only payment raise the maximum loan?

Usually, yes. An interest-only payment is smaller than an amortizing one at the same rate, so the same rent supports a larger loan. Many lenders still qualify the ratio on the interest-only payment for the interest-only period.

All calculators · Investors and self-employed

Max DSCR Loan Calculator

Start from the rent and work backward. Enter the property's income and costs, and see the biggest loan the rent can carry at your target ratio, whether that fits under the lender's loan-to-value limit, and how much cash closes the gap.

Largest loan for this property

$480,387

Set by the rent: at a 1.20 DSCR the rent supports 76.9% of the price, under the 80% cap.

Loan75%
Down payment23%
Closing costs2%

Loan the rent supports: $480,387
Implied LTV from the rent: 76.9%
Loan at the 80% max LTV: $500,000
Within the max LTV?: Yes
Largest monthly principal and interest: $3,277
Taxes, insurance and HOA: $723
DSCR on the largest loan: 1.20
Down payment: $144,613 (23.1%)
Estimated closing costs: $15,625
Cash needed to close: $160,238

The rent, not the LTV cap, is the limit here: to borrow the full 80% you would need about $4,961 a month in rent at a 1.20 ratio.

Check my DSCR options (949) 774-9599

Estimates for illustration only, not a loan offer or a commitment to lend. Rates, taxes, insurance and program rules vary; our team will confirm exact figures for your situation.

How this calculator works.

The rent is divided by your target DSCR to find the most the full monthly payment can be. Property tax, insurance and HOA come off that first, and what is left is the most the principal and interest payment can be.

That payment is turned back into a loan amount with the standard amortization formula at the rate and term you enter. The result is the rent-supported loan, and its share of the purchase price is the implied loan-to-value.

Lenders also cap the loan at a maximum LTV, typically 75% to 80% for a purchase. The loan you can take is the smaller of the two limits, and the price minus that loan, plus closing costs, is the cash you bring.

Max P&I = rent ÷ target DSCR − (taxes + insurance + HOA). Max loan = the smaller of the loan that payment supports and price × max LTV.

Common questions.

Turn the estimateinto real numbers.

Answer a few questions and our team will price your scenario with current rates and the right program.

Prefer to talk? (949) 774-9599

See if your property qualifies

1 of 11

Is this a purchase or a refinance?

No SSN. No credit impact.