PITIAPITIA
Quick answer
PITIA stands for principal, interest, taxes, insurance and association (HOA) dues — the full monthly carrying cost of a financed property.
PITIA is the standard obligation measure on 1-4 unit rental loan programs. Rather than testing income against debt service alone, lenders divide rent by principal and interest plus taxes, insurance and HOA dues, producing a PITIA DSCR. Because it captures the full carrying cost, PITIA DSCR runs lower than a debt-service-only ratio on the same property, which is why programs quoting a 1.00x or 1.25x minimum should be read carefully to confirm which measure applies.
Formula
PITIA DSCR = Annual Rent ÷ (Annual Debt Service + Taxes + Insurance + HOA)
Related product: Bridge Loans
Free tool: DSCR & Bridge Exit Calculator — run this calculation live, no sign-up required.
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