Loan programs → DSCR loans
DSCR loans in North Carolina, qualified on the rent.
Capstone Connectors is an Asheville-based private money broker. We don't make the loan — we connect rental investors across North Carolina with vetted private capital partners who underwrite a DSCR loan on the property's rental income, not your personal income. Business-purpose, non-owner-occupied investment property only.
When a DSCR loan makes sense
Long-term hold, not a short-term flip.
DSCR stands for debt-service coverage ratio. It's the financing investors use to buy or refinance a rental to hold for cash flow and appreciation — a separate product family from the hard money you'd use for a fix-and-flip. The defining feature: the property's rental income carries the loan, so you don't document personal income or hand over tax returns.
It fits investors finishing a rehab who want to stop selling and start holding, operators building a rental portfolio, and BRRRR practitioners refinancing out of a short-term loan. If you're buying a primary residence or second home, a DSCR loan is not the right tool — these are for business-purpose investment property only.
Our DSCR programs
Two ways we match DSCR deals.
Long-term hold
DSCR purchase
Buy a rental qualified on the property's income, not your W-2. A clean BRRRR exit from a rehab or bridge loan.
See DSCR purchase →Long-term hold
DSCR cash-out refinance
Refinance a rental you already own, underwritten on the property's rental income.
See DSCR cash-out refinance →DSCR loan requirements
What our lending partners look for.
- →The ratio. Monthly rent divided by monthly debt service. Some partners work with a DSCR as low as ~0.75, so the property doesn't have to fully cash-flow on day one. The exact threshold is set by the matched partner.
- →Down payment and reserves. Typically 20–25% down on a purchase, plus cash reserves. Both are set by the funding partner and the deal.
- →Property and entity. Single-family and small multifamily rentals, usually held in an LLC (operating agreement + EIN).
- →Property-based qualification. The property's rental income underwrites the loan — no personal-income (W-2 or tax-return) documentation required for qualification.
Business-purpose, non-owner-occupied investment property only. Final approval, rates, and terms are set by the matched lending partner.
DSCR loan rates
We don't set the rate. We help you model it.
The rate on a DSCR loan is set by the lending partner you're matched with, and it moves with the deal — the loan-to-value, your experience, the property, and the exit. Derek doesn't set rates; the funding partner does.
What we can do is show you typical, observed ranges across our lender network so you can run the numbers before you ever get on a call. See the rates page for current ranges.
How the DSCR ratio works
One number, in plain English.
The DSCR is the property's monthly rent divided by its monthly debt service (principal, interest, taxes, insurance, and any HOA). A ratio of 1.0 means the rent exactly covers the payment. Above 1.0, the property cash-flows; below 1.0, it doesn't fully cover itself yet.
Worked example
$2,000 monthly rent ÷ $1,600 monthly debt service = 1.25 DSCR
A 1.25 DSCR means the rent covers the payment with 25% to spare — a comfortable number for most partners. Some will go as low as ~0.75 on the right deal, which is where reserves and your experience start to matter more.
You don't need a calculator gimmick to start. Send the rent and the property and we'll talk through where the ratio lands and which partners fit.
The BRRRR exit
From a rehab loan into long-term financing.
Buy, rehab, rent, refinance, repeat. The DSCR loan is the refinance step — once the property is rehabbed and rented, you refinance out of a short-term fix-and-flip or bridge loan into long-term DSCR financing qualified on the rent. We match both the entry and the exit, so you're not stitching together two lenders who've never spoken.
Asheville rental context
A market built for long-term hold.
Capstone is based in Asheville and works with rental investors across North Carolina. Because a DSCR loan is qualified on the property's income rather than an in-person visit, we can place deals statewide — while still bringing real market knowledge to the conversation about a property's rent and exit, not a national underwriting box.
Common questions
What investors ask about DSCR loans.
What are typical DSCR loan rates?
Rates are set by the lending partner you're matched with and depend on the deal — the loan-to-value, your experience, the property, and the exit. We publish typical observed ranges across our lender network on the rates page so you can model your deal before you call.
How do you qualify for a DSCR loan?
The property qualifies the loan: its rental income measured against its debt service (the DSCR ratio), not your personal income. You'll also need cash reserves, entity documents (LLC operating agreement, EIN), and reasonable credit. First-time investors usually need a stronger ratio and more reserves; repeat operators tend to get faster decisions.
Do DSCR loans require 20% down?
Down payment is set by the lending partner and the specific deal. Twenty to twenty-five percent is typical for a purchase, and it varies on a refinance. We'll tell you what a given partner looks for before you commit to anything.
How much income do I need to qualify?
With a DSCR loan, your personal income isn't the gate — the property's rent-to-debt-service ratio is. There's no salary threshold; the question is whether the rent covers the debt service at the partner's required ratio.
What is the downside of a DSCR loan?
DSCR loans typically carry a higher rate than an owner-occupied conventional loan, require cash reserves, and come with prepayment terms worth reading closely. We walk you through all of it up front.
What are the pros and cons of a DSCR loan?
The upside: no personal-income underwriting, it scales across a rental portfolio, and the process is usually quicker than a conventional mortgage for investors. The trade-offs are the ones above — a higher rate than owner-occupied conventional, reserve requirements, and prepayment terms.
Can I use a DSCR loan to refinance a rental I already own?
Yes. That's a DSCR cash-out or rate-and-term refinance — a loan qualified on the property's rental income on a stabilized rental, with terms set by the lending partner. See our DSCR cash-out refinance page for the details.
Holding a rental, or refinancing one?
Send the property and the rent. We'll match you to a DSCR lending partner who underwrites on the income, then talk it through on a call.