Question 1

Can I use projected rent for DSCR loan qualification in Moraga?

Accepted Answer

Most lenders use the lower of actual rent or appraised market rent. If the property is vacant, they rely on the appraiser's rent schedule. Signed leases help, but market rent analysis drives qualification.

Question 2

Do DSCR lenders finance condos in Moraga?

Accepted Answer

Some DSCR lenders approve condos, but many restrict or charge higher rates for attached properties. Single-family homes typically get better pricing and more lender options in this loan category.

Question 3

How does my DSCR ratio affect my interest rate?

Accepted Answer

Higher DSCR ratios often unlock better pricing tiers. A 1.4 DSCR typically gets a lower rate than a 1.0 DSCR because stronger cash flow reduces lender risk. Rates vary by borrower profile and market conditions.

Question 4

Can I refinance my Moraga rental property into a DSCR loan?

Accepted Answer

Yes, DSCR loans work for both purchases and refinances. This helps investors tap equity without providing tax returns or employment documentation, assuming the property rent supports the new loan amount.

Question 5

What if my rental property DSCR is below 1.0 in Moraga?

Accepted Answer

Some lenders approve DSCR ratios as low as 0.75, but require larger down payments and reserves. You might put 30% down instead of 20%, or consider improving rent or reducing the loan amount.

DSCR Loans in Moraga: Income Property Financing for Real Estate Investors