Question 1

Can I use projected rent on a vacant property?

Accepted Answer

Usually, yes. The lender typically relies on the appraiser's market-rent analysis rather than current occupancy.

Question 2

Do I need reserves in the bank?

Accepted Answer

Usually, yes. Many lenders want several months of housing payments left in reserves after closing.

Question 3

What if my DSCR comes in at 0.95?

Accepted Answer

Some lenders will still consider it, but the pricing usually gets worse and the down payment may need to increase. Ratios below break-even are much harder to place.

Question 4

Can I close in an LLC from day one?

Accepted Answer

Often, yes. Many DSCR lenders allow LLC vesting, though some still want a personal guarantee.

Question 5

How long does approval take?

Accepted Answer

DSCR loans can move quickly, often in roughly 18 to 25 days, but the appraisal and rent analysis still need to support the deal.

DSCR Loans in Alameda Work When the Rental Math Actually Holds Up