DSCR of exactly 1.0 — break-even
Can I get a DSCR loan when the property breaks even at exactly 1.0?
Exactly 1.0 is a real dividing line: it clears every lender whose published floor sits at or below it, and fails against every lender whose floor sits above it.
- DSCR rental loan A property breaking exactly even clears any lender whose published minimum DSCR is 1.0 or lower, which is a real, checkable subset of this directory.
- A lender requiring DSCR above 1.0 for its best pricing tier Several lenders publish 1.0 as their minimum but reserve their strongest pricing for a higher ratio, so break-even clears the floor without necessarily reaching the best terms.
Lenders in the directory
Who publishes criteria this deal clears
Matched across all 37 lenders in the directory on published minimum DSCR. This list is computed from stored criteria, not curated — it changes when a lender’s published figures change.
Writes the product, has not published the threshold
These 16 carry a relevant product but have not published the figure this scenario depends on, or carry no verification date. We will not claim they qualify and we will not claim they do not — ask them directly.
Why 1.0 is the cleanest number in this cluster to match on
Unlike "does not cash flow," a DSCR of exactly 1.0 is a specific, stated figure — rent exactly equals the payment. That is a genuine input this directory can test against every lender’s published minimum DSCR, rather than a category needing an invented threshold.
Who clears it and who does not
Several lenders in this directory publish a minimum DSCR at or below 1.0, which a break-even property clears. Others publish a minimum above 1.0 — 1.05 or higher — which a property at exactly 1.0 does not clear, regardless of how strong the rest of the file is. That published number is enforced as a floor, not a target.
Why 1.0 is not necessarily the best-priced tier
A lender that accepts a 1.0 minimum is not necessarily pricing a break-even property the same as one with more cushion. Coverage ratio is a common input into pricing beyond just the pass/fail line, though the specific pricing tiers are not published here as a schedule — confirm on the quote.
What a thin margin means practically
A property at exactly 1.0 has no room for a rent dip, a vacancy, or a rate increase on a variable structure without falling below break-even. That is worth planning around even after the loan is approved, not just a qualifying-day concern.
What to have ready
- A precise DSCR calculation — confirm the exact rent and exact proposed payment, not rounded figures
- Reserves to cover a vacancy or rent dip, since there is no cushion built into the ratio itself
- Multiple quotes, since pricing on a break-even file varies by lender even where the floor is the same
Questions
Does a DSCR of exactly 1.0 mean I qualify everywhere?
Will I get the best rate at exactly 1.0?
Is 1.0 considered a strong or weak ratio?
Terms used on this page
- Debt Service Coverage Ratio (DSCR) — DSCR is a property’s gross monthly rent divided by its total monthly mortgage payment. A DSCR of 1.00 means the rent exactly covers the payment; 1.25 means rent exceeds the payment by 25%.
- Cash-on-Cash Return — Cash-on-cash return is the annual pre-tax cash flow a property produces divided by the total cash you put into it. Unlike cap rate, it accounts for financing.
- Vacancy and Collection Loss — Vacancy and collection loss is the portion of a property’s potential gross rent lost to unrented time and to rent billed but not collected. Subtracting it from potential gross rent produces effective gross income.