Question 1

What DSCR do I need for a Plymouth investment property?

Accepted Answer

Most lenders require 1.0 minimum, meaning rent covers the full mortgage payment. A 1.25 ratio gets you better pricing and opens more lender options.

Question 2

Can I use Airbnb income for DSCR loan qualification?

Accepted Answer

Yes, but lenders reduce projected income by 25% to account for vacancy and seasonality. You need strong booking history or a market rent appraisal.

Question 3

Do DSCR loans work for properties needing repairs?

Accepted Answer

No. The property must be rent-ready at closing. For rehab projects, use hard money or a renovation loan instead.

Question 4

How much down payment do I need for a DSCR loan?

Accepted Answer

Expect 20-25% down. Most lenders cap at 80% LTV for purchases and 75% for cash-out refinances in rural markets like Plymouth.

Question 5

Will high fire insurance kill my DSCR calculation?

Accepted Answer

It can. Insurance premiums factor into your PITI payment. Budget accurately or your debt service ratio falls below lender minimums.

DSCR Loans in Plymouth: Income Property Financing Without Tax Returns