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DSCR Loans

Looking for a fast, flexible financing option for your DSCR loan scenario?

No Prepayment Penalty | 12 Months or Less Terms

Looking for a real estate investment loan based on your ability to generate cash flow?

A Debt Service Coverage Ratio (DSCR) loan is a type of commercial lending instrument that evaluates a borrower’s capacity to repay a loan based on their cash flow and ability to service the debt. The DSCR is a financial metric commonly used by lenders to assess the creditworthiness and financial stability of a business or individual before granting a loan. It determines the extent to which a borrower’s net operating income (NOI) can cover their debt obligations, including principal, interest, and other related expenses.

Intrust Funding’s DSCR loans are designed to provide you with the financial flexibility you need to succeed in the ever-changing real estate landscape. By prioritizing your property’s cash flow, we’re able to offer you competitive loan terms that maximize your investment potential.

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DSCR Real Estate Investing FAQ

What is DSCR and why is it important in real estate investing?

DSCR, or Debt Service Coverage Ratio, is a measure of a property’s cash flow compared to its debt obligations. It’s a crucial indicator in real estate investing as lenders use it to assess the risk associated with a loan. A higher DSCR indicates a better ability to service debt.

How is DSCR calculated?

DSCR is calculated by dividing a property’s Net Operating Income (NOI) by its annual debt service (the total amount of all principal and interest payments over the year). This ratio shows how much of the debt can be covered by the property’s income.

What is a good DSCR for a real estate investment?

A DSCR of 1.0 means the property’s income is equal to its debt service, leaving no room for unexpected costs or vacancies. Typically, lenders look for a DSCR above 1.2, indicating a buffer for potential income fluctuations.

Can I get a hard money loan with a low DSCR?

While traditional lenders often require a higher DSCR, hard money lenders may be more flexible, focusing more on the property’s value and the investor’s strategy. However, a low DSCR could indicate a riskier investment, requiring careful consideration.

How can I improve my property's DSCR?

Improving a property’s DSCR can be achieved by increasing its income or decreasing its debt service. This could involve strategies such as increasing rent, reducing vacancies, refinancing to a loan with lower payments, or paying off some of the debt principal.

Do all lenders use DSCR when assessing a loan application?

While DSCR is a common measure used by many lenders, it is not used universally. Some lenders may place more emphasis on the borrower’s credit history or the value of the property. However, a healthy DSCR is generally a positive indicator in any loan application.

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Actively Funding Since 2009: Why We’re Still Here


As a real estate investor, you know how important it is to find a reliable source of funding to finance your projects. With so many hard money lenders out there, it can be tough to separate the good from the bad. That’s why we want to take a moment to tell you about what sets us apart.

At Intrust Funding, we’ve been providing short-term loans to real estate investors since 2009. We haven’t changed our underlying principles; we haven’t changed our rates; we don’t take shortcuts or use gimmicks to win business. Instead, we believe in building long-term relationships with our clients based on solid principles that remain true even when markets shift. That’s how we’ve remained open and offered funding while other lenders have closed their doors and called their loans due. We have never stopped funding since our inception in 2009 and would love fund your next project.

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