DSCR Investment Loan

Use ADU Rental Income
to Qualify for Your Next Investment

No personal income verification. No tax returns. Qualify based on your property's rental cash flow — including income from Accessory Dwelling Units.

See If You Qualify How It Works

$3M

Maximum Loan Amount

15%

Minimum Down Payment

660+

Minimum Credit Score

Tax Returns Required

Program Benefits

Why Investors Choose DSCR ADU Loans

A smarter way to finance investment properties — designed specifically for real estate investors who want to qualify based on what the property earns, not their personal income.

🏠

ADU Income Counts

Unlike most lenders, this program includes rental income from your Accessory Dwelling Units in the DSCR calculation, boosting your qualifying power.

📋

No Income Verification

No W-2s, tax returns, or pay stubs required. Qualify entirely on the property's rental income versus its loan payment.

🏢

Entity Vesting Accepted

Hold your investment property in an LLC, corporation, partnership, or trust for asset protection — this program supports it.

💰

Cash-Out Refinancing

Access your equity immediately with no ownership seasoning required. Cash-out proceeds can even be used toward reserve requirements.

📈

Flexible Loan Structures

Choose from 15, 30, or 40-year fixed rates, adjustable-rate mortgages, interest-only payments, or 2/1 buydowns to fit your strategy.

🎯

Investor-Friendly Terms

First-time investors welcome. 100% gift funds accepted. Seller concessions up to 6%. Use the higher of appraisal rent or actual lease.

The Process

How DSCR Qualifying Works

DSCR compares your property's rental income (including ADU income) to the total loan payment. If the rent covers the mortgage, you qualify.

The Formula

DSCR = Gross Rental Income (incl. ADU) ÷ Total Loan Payment (PITIA)

A DSCR of 1.0 or higher means the rental income fully covers the mortgage payment. Higher ratios unlock better rates and higher maximum loan-to-value ratios. Programs are available even for properties with a DSCR between 0.75 and 1.0.

Tell Us About Your Property

Share your investment property details including ADU information and current or projected rental income.

We Calculate Your DSCR

We compare total rental income (including ADU) against the projected loan payment to determine your qualifying ratio.

Get Pre-Qualified Fast

No tax returns or income docs needed. We structure the best loan option for your investment strategy.

Close & Start Earning

Quick closing process so you can start generating rental income from your investment sooner.

Full Program Details

Complete Eligibility & Guidelines

Everything you need to know about qualifying — the same detail your loan officer uses.

Property Type

✓Investment property only (non-owner occupied)

✓1–4 units, PUDs, Condos (warrantable & non-warrantable)

✓ADU present or planned — income can be included

✓Max 20 acres · Rural OK (700+ FICO, 1.0+ DSCR, 75% LTV)

✓Leaseholds and Condotels (70% LTV, min 0.75 DSCR)

✗ Ineligible: manufactured, co-op, log home, mixed-use, >20 acres

Rental Income & DSCR Tiers

✓Use current lease or projected rent (higher of 1007 or lease)

✓ADU income included in DSCR calculation

✓DSCR ≥ 1.0: best pricing & max LTV (up to 85%)

✓DSCR 0.75–0.99: reduced LTV · No-Ratio DSCR also available

✓Short-term rental (Airbnb): min 1.15 DSCR, max $2M, 75% LTV

✓Use highest representative FICO among all borrowers

Borrower Profile

✓Credit score: 660+ (highest representative FICO used)

✓U.S. Citizens & Permanent Residents accepted

✓First-Time Investors OK

✓Entity vesting: LLC, Corporation, Partnership, Trust

✓FTHB: max $2M, min 700 FICO, 6 mo reserves, no I/O

✓100% gift funds accepted for down payment & closing costs

Reserves & Down Payment

✓≤$750K at ≤80% LTV: 3 months PITIA

✓≤$750K at >80% LTV: 6 months PITIA

✓$750K–$2M: 6 months · >$2M: 12 months PITIA

✓Down payment: 15–40% depending on LTV tier

✓Cash-out proceeds may be used as reserves

✓Seller concessions up to 6%

Deal Structure & Products

✓Loan amounts: $150K – $3,000,000

✓Purchase, Rate/Term Refi, or Cash-Out Refi

✓15/30/40-yr Fixed, 5/6 SOFR ARM, Interest-Only, 2/1 Buydown

✓No cash-out seasoning required — refi immediately after purchase

✓Prepayment penalty available up to 5 years

✓Subordinate financing allowed to max LTV

Common Questions

Frequently Asked Questions

A DSCR (Debt-Service Coverage Ratio) loan lets you qualify based on the property's rental income rather than your personal income. If the rental income covers the mortgage payment, you can qualify — no tax returns, W-2s, or pay stubs required.

Most lenders ignore ADU rental income when calculating your debt-service ratio. This program includes it, which means your total qualifying rental income is higher — often enough to push your DSCR above 1.0 and unlock better rates and higher LTV options.

Yes. This program accepts entity vesting including LLCs, corporations, partnerships, and inter-vivos revocable trusts — ideal for investors who want asset protection.

The best pricing and highest LTV options are available at a DSCR of 1.0 or higher. Programs are also available for properties with a DSCR of 0.75 or higher, and "No-Ratio" DSCR options exist as well — though at reduced LTV limits.

Yes, and there's no ownership seasoning requirement — you can refinance and access equity immediately after purchase. Cash-out proceeds can even be used to satisfy reserve requirements.

Short-term rental income is accepted with some additional conditions: a minimum 1.15 DSCR based on AirDNA gross revenue, a maximum loan amount of $2,000,000, and a maximum 75% LTV. The No-Ratio DSCR option is not available for short-term rentals.

Ready to Finance Your Investment Property?

Let us show you how ADU rental income can help you qualify for the investment financing you need — with no income verification and flexible terms built for investors.

Get Pre-Qualified Today

All loan programs and services brokered by and provided through Ashlar Lending, Inc., NMLS #2699657

Use ADU Rental Income to Qualify for Your Next Investment