Question 1

Can I use a DSCR loan for a property I plan to rent short-term in Walnut Creek?

Accepted Answer

Some DSCR lenders allow short-term rental income, but they'll calculate it differently than traditional leases. You'll need strong documentation of rental history or market comparables to support the income projections.

Question 2

What happens if my DSCR ratio is below 1.0?

Accepted Answer

Ratios below 1.0 are possible but typically require larger down payments, higher credit scores, or significant reserves. Some lenders accept ratios as low as 0.75 with compensating factors.

Question 3

Do I need experience as a landlord to qualify for a DSCR loan?

Accepted Answer

Most DSCR lenders don't require prior landlord experience. They focus on the property's ability to generate income rather than your management history.

Question 4

How quickly can I close on a DSCR loan in Walnut Creek?

Accepted Answer

DSCR loans typically close in 30-45 days, faster than many conventional investor loans since there's no income verification. Having an appraisal with rent estimates expedites the process.

Question 5

Can I refinance an existing Walnut Creek rental into a DSCR loan?

Accepted Answer

Yes, DSCR cash-out refinances let you pull equity from performing rentals. The same ratio requirements apply, but you can access funds without documenting personal income.

DSCR Loans in Walnut Creek: Qualify With Rental Income, Not W-2s