For investors: DSCR compares a property’s rent to its full payment. Lenders use it to qualify the property on its own cash flow. Lexington goes down to 0.75.
Debt Service Coverage Ratio is a property’s gross monthly rent divided by its full monthly payment — principal, interest, taxes, insurance, and HOA (PITIA). A 1.00 ratio means the rent exactly covers the payment; above 1.00 means positive cash flow.
Most lenders stop at a 1.00 DSCR. Lexington places investor loans down to a 0.75 ratio, so a property that doesn’t fully cover itself on paper can still be financed with the right structure. Set the minimum to your program and see where you stand.