Question 1

Can I use projected rent for a vacant Lafayette property?

Accepted Answer

Yes, most DSCR lenders use the appraiser's market rent opinion for vacant properties. If the property is currently rented, they typically use the actual lease amount or market rent, whichever is lower.

Question 2

Do I need reserves for a DSCR loan in Lafayette?

Accepted Answer

Most lenders require 6-12 months of property reserves, meaning cash to cover mortgage payments. The exact amount depends on your credit score, down payment, and number of financed properties.

Question 3

Can I finance a short-term rental property with DSCR?

Accepted Answer

Many DSCR lenders accept short-term rental income from Airbnb or VRBO. They'll review your rental history or market comparables to project income. Lafayette has specific STR regulations to verify first.

Question 4

What if my DSCR is below 1.0 in Lafayette?

Accepted Answer

Some lenders approve DSCR as low as 0.75, meaning rent covers 75% of the payment. You'll need a larger down payment and higher credit score for sub-1.0 ratios.

Question 5

How do DSCR lenders verify Lafayette rental rates?

Accepted Answer

The appraiser provides a rental analysis showing comparable properties and market rents. For occupied properties, lenders also review the current lease to confirm rental income.

DSCR Loans in Lafayette: Investment Property Financing Based on Rental Income