Truss Financial Group is expanding its home equity strategy with a DSCR-based line of credit designed to help real estate investors tap rental-property equity without replacing low-rate first mortgages.
The California-based mortgage brokerage said its DSCR HELOC offers credit lines ranging from $50,000 to $1 million, with a maximum combined loan-to-value ratio of 80%. The program carries a 10-year draw period with interest-only payment options and may be used on non-owner-occupied one- to four-unit properties, condominiums, and planned unit developments.
Rather than qualifying borrowers through personal income or debt-to-income ratios, the program evaluates the rental income generated by the underlying property. Truss said borrowers are not required to provide W-2s or personal tax returns, although bank statements may be needed to document reserves generally equal to three to six months of payments.
The brokerage is positioning the product for investors who have accumulated equity but remain reluctant to use a cash-out refinance that would replace a first mortgage originated when rates were considerably lower.
That rate-lock effect has created an opening for lenders and brokers offering second-lien products. For loan originators, investor HELOCs offer a way to generate business from existing property owners who may have little reason to refinance their primary debt yet still need capital for acquisitions, renovations, or operating expenses.
Truss said investors can also use the revolving line to fund earnest-money deposits or accelerate the “buy, rehab, rent, refinance, repeat,” or BRRRR, investment cycle.
“Innovation is about removing friction between an entrepreneur’s vision and their earned capital,” Truss CEO and founder Jeff Miller said. “In this rebalancing market, home equity should not be a static number; it must be an active tool for growth.”
Qualification Below Break-Even
The program’s most notable feature may be its willingness to consider properties with a debt service coverage ratio as low as 0.75.
Truss calculates DSCR by dividing gross monthly rent by the property’s PITIA, which includes principal, interest, taxes, insurance, and homeowners association dues. A ratio of 1.0 indicates that rent is sufficient to cover the full monthly housing obligation. At 0.75, rental income covers only 75% of that payment.
For properties with a ratio below 1.0, Truss said borrowers may supplement the property’s rental income through asset-depletion underwriting. The method converts liquid assets, including savings, investment portfolios, and other readily accessible funds, into hypothetical monthly income by dividing their value by a lender-determined number of months.
The brokerage does not disclose the precise divisor or how different assets are valued, meaning the calculation will depend on the underlying lender’s guidelines.
Vacant properties may also qualify. Truss said it can use an appraiser’s Form 1007 market-rent study to establish the property’s potential rental income when no current lease is available.
The company lists a credit score of 660 for the program’s best rates. Transactions can close in the name of a limited liability company, and Truss advertises the ability to establish credit lines across multiple properties without applying a conventional limit on the number of financed properties.
Most of the company’s DSCR HELOC options include a lockout period or a fee if the line is closed during the first 1 to 3 years, although the specific structure varies.
Broader Equity Push
The specialized investor product builds on the digital HELOC platform Truss introduced in May. That rollout targeted self-employed borrowers, entrepreneurs, and investors who may have difficulty passing traditional automated underwriting.
Truss said the DSCR HELOC uses digital asset verification and automated valuation models to provide an initial lending decision within minutes and funding in as little as five business days.
*This article was primarily written by a human author. AI tools were used in a limited capacity for research assistance or light editing.
