How Does Truss Financial Group Provide DSCR Loans On Properties With DSCR Below 1?

It isn't.

Many real estate investors hit this wall. Over 20% of investment property applications are rejected due to DSCR shortfalls, not because the investment is unsound, but because the borrower's wealth lives on the balance sheet, not the income statement. Through an exclusive Asset Depletion Mortgage program by Truss Financial Group, liquid assets are converted into qualifying income, bypassing the sub-1.0 DSCR barrier that stops most lenders cold.

This article breaks down how that process works, who it's built for, and what it takes to get a DSCR loan approved.

Why DSCR Below 1.0 Stops Most Lenders and What They're Missing?

The debt service coverage ratio (DSCR) measures a property's ability to cover its debt obligations. The formula is straightforward: divide net operating income NOI by total annual debt service. A ratio above 1.0 means the property generates enough income to cover monthly payments. Below 1.0 means there's a gap, and traditional lenders treat that gap as an automatic disqualification, typically requiring minimum DSCR requirements of 1.25 before they'll engage.

What conventional underwriting misses is context. A DSCR below 1.0 is not always a sign of poor financial health. Rising interest rates between 2022 and 2024 compressed DSCR ratios across many markets. Properties that previously cleared 1.25 now face negative cash flow, not because rental income collapsed, but because principal and interest payments increased.

For self-employed borrowers with irregular income, retirees drawing from fixed pensions, and high-net-worth investors managing cash flow across multifamily properties and other asset classes, a sub-1.0 DSCR is often a structural reality shaped by market conditions, not a reflection of the investment's income potential.

Conventional lenders read the income column and stop. They have no underwriting tool to account for the balance sheet sitting right beside it.

The Solution: Asset Depletion Mortgages

The Asset Depletion Mortgage is a proprietary program that allows real estate investors to secure financing based on the income generated by depleting liquid assets over the loan term, rather than relying on a property's rental income alone to cover debt obligations.

Here's how it works:

1. Asset Assessment: Eligible liquid assets are evaluated: brokerage accounts, CDs, mutual funds, 401(k)s with careful structuring, and IRAs. Bank statements from the last two months are all that's required for verification. Non-liquid assets like real estate equity don't qualify; the program is built around assets that are genuinely accessible.
2. Depletion Calculation: Total qualifying assets, minus down payment and closing costs, divided by the loan term in months. This produces a monthly imputed income figure used alongside the property's income to calculate DSCR and assess qualification. A $1,000,000 asset pool on a 30-year term generates $2,778 per month in qualifying income, enough to close the gap a sub-1.0 DSCR creates.
3. DSCR Integration: The imputed income is layered into the borrower's overall qualification profile, bridging what the property's net operating income alone cannot cover. Rather than penalizing borrowers for a borrower's personal income that doesn't reflect their actual financial health, the program evaluates total wealth.

The result is a DSCR financing solution built around what the borrower actually owns, not just what their operating expenses and rental income produce on paper.

Who This Program Is Built For?

Asset depletion is not a workaround for every borrower with a low DSCR. It is specifically designed for borrowers who are asset-rich and income-constrained by structure, not by financial distress. If you fall into one of the profiles below, this program was built with you in mind:

• Self-employed professionals with irregular or seasonal income whose personal income doesn't reflect their actual net worth
• Retirees drawing from fixed pensions or retirement accounts where the monthly cash flow is limited, but assets are substantial
• High-net-worth investors managing multiple properties, including multifamily properties and mixed-use residential and commercial units, where individual property DSCR dips below 1.0 despite a strong overall portfolio
• Business owners whose personal income is reinvested into operations, keeping the income statement lean by design

This program from Truss Financial Group suits investors whose investment strategy involves acquiring properties with strong income growth potential that temporarily show insufficient income at the time of financing. If you don't have a meaningful liquid asset base, asset depletion won't work. The math requires sufficient assets to generate a qualifying income that moves the needle on DSCR. For those borrowers, a different path is needed.

Real Outcomes: What an Approval Looks Like

Two borrowers, different profiles, the same problem: a DSCR below 1.0 and a conventional lender that said no.

Sarah, 58, self-employed tech consultant, Austin: Her DSCR came in at 0.85 due to irregular consulting income. Traditional lenders cited insufficient income and passed. Her $800,000 diversified portfolio was depleted at $2,222 per month in imputed qualifying income. She closed on a $750,000 investment property in under 45 days, preserving her full cash reserves for retirement while generating passive rental income from day one.

Mike, retired physician, Miami: His pension covered the basics, but a beachfront condo pushed his DSCR to 0.92. His $1,200,000 IRA, structured as a non-qualified distribution, was used to generate enough income to qualify. He closed without liquidating a dollar of principal prematurely, and without the months of back-and-forth that conventional real estate lending would have required.

In both cases, the investment was sound. The income statement just didn't show it. Asset depletion did.

Loan Parameters

IRA and 401(k) assets require careful structuring to avoid early withdrawal penalties, handled during the qualification process. No hidden fees, no upcharges for the niche product.

Costs, Risks, and What to Know Before You Apply

Asset depletion is a calculated draw. Assets are amortized over the loan term, not liquidated upfront. That said, there are real risks every borrower should model before committing:

Reducing operating expenses, such as property management fees, before applying can strengthen the DSCR calculation and improve loan terms. Similarly, increasing rental income through market-rate rent adjustments improves the property's income profile and reduces reliance on asset depletion to bridge the gap. The investors who use this program well run the long-term math before they apply, not after.

How to Apply: Four Steps From First Call to Close

Step 1: Initial Consultation: A free 30-minute call with a specialist. You'll walk through your liquid assets, the subject property, and the DSCR picture to confirm program fit before anything goes to underwriting.

Step 2: Documentation Upload: Submit two months of bank statements and basic property details via the secure portal. No years of tax history, no employment verification.

Step 3: Underwriting: The DSCR calculation is run, integrated with the property's income profile, and pre-approval is issued, typically within 24 to 48 hours.

Step 4: Closing: The full closing process is managed with a dedicated loan officer at every step. Virtual closing is available, with funding as fast as 45 days from first call.

Frequently Asked Questions

What is the minimum DSCR that can be approved?

DSCR loans can be approved with ratios as low as 0.75 for purchase transactions, depending on compensating factors including LTV, minimum credit score, and liquid asset position.

What assets qualify for the asset depletion program?

Brokerage accounts, CDs, mutual funds, 401(k)s, and IRAs. Non-liquid assets such as real estate equity do not qualify.

Can I use a 401(k) or IRA?

Yes, with careful structuring to avoid early withdrawal penalties. The underwriting team handles this as part of the qualification process.

Does this work for both purchase and refinance transactions?

Yes. Asset depletion can be applied to purchase transactions and refinancing existing loans where the property generates insufficient income to meet conventional minimum DSCR requirements.

How is this different from a hard money loan?

Hard money loans are primarily asset-based and short-term, with significantly higher interest rates and fees. This asset depletion program offers competitive rates, terms up to 30 years, and is designed for long-term real estate investing, not bridge lending.

Your Balance Sheet Is a Qualification Tool

A DSCR below 1.0 is not a dead end for borrowers with significant liquid assets. It is a qualification challenge that the right program solves precisely. The investors who close these deals understand that their balance sheet is as powerful as their income statement, and that the right DSCR mortgage lender knows how to read both.

Mortgage brokers like Truss Financial Group structure mortgage loans around what you actually have, not just what the income column shows. Gather two months of bank statements and contact a loan officer to start the prequalification conversation today.

Get a quote today!