Question 1

What DSCR ratio do I need for a Kerman rental property?

Accepted Answer

Most lenders require 1.0 minimum, meaning rent covers the full mortgage payment. You get better rates at 1.25 or higher.

Question 2

Can I use projected rent or do I need a signed lease?

Accepted Answer

Lenders use an appraiser's rent schedule, not your projections. Existing leases help but aren't required for DSCR approval.

Question 3

Do DSCR lenders check my personal income or tax returns?

Accepted Answer

No. DSCR loans qualify on property income only. Lenders never see W-2s, pay stubs, or 1040 forms.

Question 4

What credit score do I need for a DSCR loan in Kerman?

Accepted Answer

620 minimum. You'll see better pricing and more lender options at 680 or above.

Question 5

How much down payment do Kerman DSCR loans require?

Accepted Answer

20-25% for single-family rentals, 25-30% for 2-4 units. Higher down payments improve rates and DSCR ratios.

Question 6

Can I use DSCR loans for fix-and-flip projects in Kerman?

Accepted Answer

No. DSCR loans require habitable, rent-ready condition at closing. Use hard money or bridge loans for rehab projects.

DSCR Loans in Kerman: Property Income Qualifies, Not W-2s