DSCR & Cash Flow

PITIA (Principal, Interest, Taxes, Insurance & Association Dues)

The complete monthly housing expense denominator used to calculate Debt Service Coverage Ratio (DSCR).

Underwriting Formula / Rule

PITIA = Monthly P&I (or IO) + (Annual Taxes ÷ 12) + (Annual Insurance ÷ 12) + Monthly HOA.

Detailed Credit-Committee Impact & Thresholds

PITIA stands for Principal, Interest (or Interest-Only payment), Property Taxes, Landlord Hazard/Flood Insurance, and HOA/Condo Association Dues. Property management fees and utilities are excluded from standard 1–4 unit residential DSCR PITIA.

2026 Wholesale Benchmark: Interest-Only (IO) 10-year options reduce the "P" to $0 during the IO period, boosting DSCR coverage.

Related Underwriting Terms

Debt Service Coverage Ratio (DSCR)Form 1007 Single-Family Comparable Rent Schedule Form 1025 Small Residential Income Property Appraisal Report 5-4-3-2-1 Step-Down Prepayment Penalty 3-2-1 Step-Down Prepayment Penalty Yield Maintenance Prepayment Provision