What Is PITIA (and Why DSCR Investors Should Care)

Understanding PITIA in the context of your DSCR loan is key to getting approved faster with fewer surprises.

If you're investing in real estate with a DSCR loan, there's one acronym you need to understand: PITIA. Most lenders use it. Every DSCR calculation includes it. And if you want your deal approved fast, you better have a handle on it. Let’s break it down—DSCR Investor Loanz style.

PITIA = The Monthly Mortgage Package

PITIA stands for:

• Principal – the loan balance you're actually paying down.

• Interest – what the lender earns for letting you borrow.

• Taxes – property taxes owed to the county or city.

• Insurance – typically homeowner’s insurance, sometimes more (think flood, wind, etc.).

• Association Dues – HOA fees, if your property has them.

  
  

🧠 Translation: This is your total monthly cost to hold the property—not just your mortgage payment, the full package.

Why Knowing Your Taxes and Insurance Matters

We’ve seen it happen too many times—investors jump into deals without fully accounting for property taxes and insurance. Here’s why that’s a big mistake:

Underestimating taxes can kill your cash flow

• Some areas reassess taxes after a purchase. That “great deal” can quickly turn into a breakeven—or worse—if your tax bill doubles post-closing.

Insurance premiums vary—big time

• Coastal property? Older roof? High-crime ZIP code? These can make your premium spike from $800 to $3,000+ fast.

Your DSCR depends on accurate numbers

• Lenders calculate DSCR based on actual costs. If your taxes or insurance are off, your numbers won't work—and your loan might not either.

💡 Pro tip: Before submitting a deal, run your PITIA using real tax records and an actual insurance quote. We can help with both.

Now here’s where it gets real:

DSCR = Monthly Rental Income ÷ PITIA

This is how lenders measure if your property pays for itself.

• A DSCR of 1.0 = rent just covers expenses.

• Above 1.0 = positive cash flow.

• Below 1.0 = risky for lenders.

*Unlock your deal’s potential—use our DSCR Calculator to instantly see if your property qualifies.

At DSCR Investor Loanz, we work with 100+ lenders—some accept 1.0, others require 1.2+. That’s why we shop it for you.

Why This Matters for Investors

Understanding PITIA helps you:

✅ Get Approved – Know your numbers and submit strong loan files.

✅ Know Your Numbers – Run the deal through our Free Property Analysis—no guesswork.

✅ Plan Smarter – PITIA helps you budget for rentals, flips, and BRRRR deals.

🔑 Bonus: With DSCR loans, no tax returns needed—we qualify the property, not the borrower.

Let’s Run the Numbers Together

Got a deal ready? Let’s calculate your DSCR—and with just one app, we’ll shop it to 100+ lenders for you.

📊 Request a Free Property Analysis