Question 1

What is a DSCR loan?

Accepted Answer

A DSCR (Debt Service Coverage Ratio) loan is a type of investment property mortgage that qualifies borrowers based on the rental income generated by the property — not the borrower's personal income. The DSCR is calculated by dividing the property's gross monthly rental income by its total monthly debt obligations (principal, interest, taxes, insurance, and HOA). A DSCR of 1.0 means the property breaks even; above 1.0 means positive cash flow. Zeus Commercial Capital offers DSCR loans starting at 1.0 DSCR, with no-ratio options for experienced investors.

Question 2

How is DSCR calculated?

Accepted Answer

DSCR = Gross Monthly Rental Income ÷ Monthly PITIA (Principal + Interest + Taxes + Insurance + Association fees). For example: if a property generates $3,000/month in rent and has $2,400/month in PITIA, the DSCR is 3,000 ÷ 2,400 = 1.25. Use our free DSCR calculator at dscrcalc.net to instantly calculate your property's ratio.

Question 3

What is the minimum DSCR required to qualify?

Accepted Answer

Most DSCR loan programs require a minimum DSCR of 1.0 to 1.25. However, Zeus Commercial Capital also offers No Ratio DSCR loans where no minimum DSCR is required — ideal for experienced investors with strong credit profiles or properties that are temporarily vacant or being stabilized.

Question 4

Do DSCR loans require income verification?

Accepted Answer

No. DSCR loans do not require W-2s, tax returns, pay stubs, or any personal income documentation. You qualify entirely based on the investment property's rental income versus its debt obligations. This makes DSCR loans ideal for self-employed borrowers, business owners, and investors with complex income structures.

Question 5

Can I get a DSCR loan in an LLC?

Accepted Answer

Yes. Zeus Commercial Capital is fully LLC-friendly. You can close your DSCR loan in the name of your LLC, LP, or other business entity. This provides liability protection and simplifies your investment property accounting. We work with both single-member and multi-member LLCs.

Question 6

What property types qualify for DSCR loans?

Accepted Answer

DSCR loans are available for 1-4 unit residential investment properties including single-family homes, duplexes, triplexes, and quadplexes. Short-term rentals (Airbnb, VRBO) also qualify — we use either actual rental income or market rent comparables to calculate DSCR.

Question 7

What is a DSCR cash-out refinance?

Accepted Answer

A DSCR cash-out refinance replaces your existing investment property mortgage with a new, larger loan — allowing you to extract the equity you've built as tax-free cash. Unlike traditional refinancing, DSCR cash-out refi qualifies based on the property's rental income, not your personal income. Zeus Commercial Capital offers cash-out refinancing up to 75% LTV on 1-4 unit investment properties.

Question 8

How much can I cash out on an investment property?

Accepted Answer

With a DSCR cash-out refinance through Zeus Commercial Capital, you can typically borrow up to 75% of the property's current appraised value (LTV). For example, if your property is worth $400,000 and you owe $200,000, you could potentially access up to $100,000 in cash (75% of $400,000 = $300,000 new loan minus $200,000 payoff = $100,000 cash). Use our calculator to estimate your cash-out amount.

Question 9

What is the difference between cash-out refinance and rate-and-term refinance?

Accepted Answer

A cash-out refinance increases your loan balance to extract equity as cash. A rate-and-term refinance replaces your existing loan with a new one at a better rate or different term without taking additional cash out. Zeus Commercial Capital offers both options for investment properties. Rate-and-term refinances typically qualify for slightly better rates and higher LTVs than cash-out refinances.

Question 10

How long does a DSCR cash-out refinance take?

Accepted Answer

Zeus Commercial Capital can typically close DSCR cash-out refinances in 14-30 days from application. Pre-approval decisions are made within 24-48 hours. The timeline depends on appraisal scheduling, title work, and document collection. Our streamlined process is designed to move quickly so you can access your equity and reinvest without delay.

Question 11

Can I use cash-out refinance proceeds to buy another property?

Accepted Answer

Absolutely. Many of our investors use DSCR cash-out refinancing as a portfolio growth strategy — extracting equity from one stabilized property to fund the down payment on the next acquisition. This is known as the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat). Zeus Commercial Capital specializes in helping investors execute this strategy efficiently.

Question 12

What is a No Ratio DSCR loan?

Accepted Answer

A No Ratio DSCR loan (also called a No-Doc DSCR or DSCR waiver loan) does not require the property to meet any minimum DSCR threshold. Instead of calculating the debt service coverage ratio, the lender focuses on the borrower's credit score, equity position (LTV), and investment experience. These loans are ideal for properties that are vacant, being renovated, or transitioning tenants, as well as for experienced investors with strong credit who want maximum flexibility.

Question 13

What is a foreclosure bailout loan?

Accepted Answer

A foreclosure bailout loan is an emergency refinancing solution designed to help property owners stop an active foreclosure by paying off the defaulted loan before the property is auctioned. Zeus Commercial Capital specializes in fast-track foreclosure bailout financing for investment properties, with pre-approvals in 24-48 hours. Even with a Notice of Default (NOD) or scheduled auction date, we may be able to help — but time is critical. Contact us immediately if you're facing foreclosure.

Question 14

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR loan programs require a minimum credit score of 620-640. However, better rates and terms are available for scores of 700+. Zeus Commercial Capital also has programs for investors with recent credit events (late payments, short sales, bankruptcies) who may not qualify with traditional lenders. We evaluate the full picture of your investment profile, not just your credit score.

Question 15

What loan amounts does Zeus Commercial Capital offer?

Accepted Answer

Zeus Commercial Capital offers DSCR loans ranging from $100,000 to $5 million+ for 1-4 unit investment properties. For larger commercial properties or portfolios, visit zeus-commercial.com for our commercial lending programs. For business financing, visit zeusmca.com.

Question 16

Are DSCR loans available for short-term rentals?

Accepted Answer

Yes. Zeus Commercial Capital offers DSCR loans for short-term rental properties including Airbnb and VRBO listings. We can use either actual rental income (12-month average) or market rent comparables from tools like AirDNA to calculate the DSCR. Short-term rental income is increasingly accepted by DSCR lenders as the market has matured.

Question 17

What documents do I need to apply for a DSCR loan?

Accepted Answer

For a DSCR loan, you typically need: (1) Completed loan application, (2) Property information (address, purchase price or current value, rental income), (3) Current lease agreement or market rent analysis, (4) Recent mortgage statement (for refinances), (5) Entity documents if closing in an LLC, (6) Property insurance information. No tax returns, W-2s, or pay stubs are required. The process is streamlined compared to conventional mortgages.

Question 18

How do I apply for a DSCR loan with Zeus Commercial Capital?

Accepted Answer

Applying is simple: (1) Complete our online application at zeusdscr.com/apply — takes about 10 minutes, (2) Choose your loan path: DSCR Purchase or DSCR Refinance, (3) Provide basic property and borrower information, (4) Receive a pre-approval decision within 24-48 hours, (5) Our team will contact you to discuss your specific scenario and next steps. You can also call us directly or email Thomas@zeuscommercialcapital.com.

Question 19

What happens after I submit my application?

Accepted Answer

After submitting your application, a Zeus Commercial Capital loan specialist will review your information and contact you within 24-48 hours with a pre-approval decision and rate quote. We'll discuss your investment goals, review the property details, and outline the path to closing. From pre-approval to closing typically takes 14-30 days depending on appraisal and title timelines.

Frequently Asked Questions

DSCR Loan Basics

Cash-Out Refinance

Loan Programs

Application Process

Helpful Resources

Free DSCR Calculator

Commercial Lending

Business Financing

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