How do you increase your DSCR?

Raise the qualifying rent or lower the payment. The biggest levers are a larger down payment, which shrinks the loan and the payment, and buying down the rate with points. Others include a longer or interest-only term, shopping insurance, appealing the appraised rent, and paying off the HOA or removing escrow where allowed.

What is the fastest way to fix a DSCR that is just short?

A larger down payment is usually the most reliable. Reducing the loan amount lowers the principal and interest directly, which raises the ratio. For a marginal file, even five percent more down can move a 0.98 ratio over 1.0.

Strategy

How to Improve Your DSCR (Seven Levers)

DSCR is rent divided by the full payment, so every lever either lifts the rent the lender counts or lowers the payment. If your ratio is short, here are the seven moves that fix it, strongest first.

By Owen Brandt, Research Editor. Updated June 13, 2026.

Your DSCR is the rent the lender counts divided by the full monthly payment, often called PITIA. If the ratio is short of the lender minimum, you do not have to walk away. Every lever below either lifts the income side or lowers the payment side. Run each one on the DSCR calculator to see the effect on your deal.

The seven levers, strongest first

A larger down payment. The most reliable lever. A smaller loan means a smaller principal and interest payment, which lifts the ratio directly. See down payment.
Buy down the rate. Paying points lowers the rate and the payment, raising the ratio while also saving interest. See buying down the rate.
Longer or interest-only term. A 30-year term, or an interest-only option, lowers the monthly payment and lifts the ratio, at a cost. See interest-only and ARM DSCR loans.
Shop the insurance. Insurance is in the payment, so a cheaper policy directly raises the ratio. This is the easiest win in high-premium states.
Document the real market rent. If the appraised rent comes in low, a strong lease or comparable rentals can support a higher figure. See the appraisal and rent schedule.
Reduce or remove HOA and escrow drag. A lower-HOA property carries a smaller payment, and waiving escrow where allowed lowers the monthly figure, though you then pay taxes and insurance yourself. See escrow and impounds.
Appeal the property tax assessment. Where taxes are over-assessed, a successful appeal lowers the payment for years.

Put it together

Most short ratios are fixed by combining two small levers rather than one big one: a touch more down and a cheaper insurance policy, or a buydown plus a corrected rent figure. Model the combination on the DSCR calculator, then confirm your standing with the pre-qualifier. For the tiers that define a good ratio, see what is a good DSCR ratio.