Asset Depletion for DSCR Loans: Qualifying When the Rent Doesn't Quite Cover the Payment

Short answer: When a property’s rent alone produces a DSCR between 0.75 and 0.99 — not quite covering the full payment — eligible liquid assets can supplement that rent for qualification purposes. Assets divided by 60 are added to the monthly rent figure, and if that blended number reaches a DSCR of 1.15 or higher, the deal can qualify at a stronger tier than the raw rent number would support on its own.

Why this exists

Not every strong investment property produces a DSCR of 1.00 or higher from day one — a smaller down payment, a higher purchase price relative to market rent, or a still-stabilizing rental can all leave the numbers just short. Asset depletion gives investors with real liquidity a way to demonstrate financial strength beyond what the property’s rent alone shows.

The math, worked through

Say a property’s rent produces a DSCR of 0.85 against its proposed payment — under the payment, but within the qualifying range for this path. If the investor has $150,000 in eligible liquid assets, that gets divided by 60 (a five-year time horizon), adding $2,500 to the monthly rent figure used in the DSCR calculation. If that blended number produces a DSCR of 1.15 or higher, the deal qualifies under this pathway.

What counts, and what the requirements are

• Minimum 680 credit score
• Loan amounts up to $2,000,000
• Reserves of 3 months of payments on a purchase, 6 months on a refinance
• Generally limited to investors with an established rental property track record — this path is typically not available to first-time investors
• Cash-out proceeds from the same transaction cannot be used as the depleted asset

See it calculated on your own numbers

The calculator checks both the standard path and the asset-depletion path automatically and shows you whichever produces the better outcome — including a clear note whenever asset depletion is what got you there.