Question 1

Can I use projected rent for a vacant property?

Accepted Answer

Yes. The appraiser provides a rent schedule showing market rent for similar properties. Lenders use that figure to calculate DSCR even if the property is currently vacant.

Question 2

What if the DSCR is below 1.0?

Accepted Answer

Some lenders go down to 0.75 DSCR with higher down payments and reserves. You'll pay a rate premium. Below 0.75, you need a different loan product entirely.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

No personal tax returns needed. Lenders verify the property address and confirm you're not occupying it. That's the only income documentation required for qualification.

Question 4

Can I refinance into a DSCR loan?

Accepted Answer

Yes. Rate-term and cash-out refinances both work. Most lenders require six months of seasoning from your last refinance and 6-12 months of reserves post-close.

Question 5

How do short-term rentals affect DSCR approval?

Accepted Answer

Lenders require 12-24 months of rental history and booking documentation. Fewer lenders offer this, and you'll need higher DSCR ratios—often 1.25 minimum instead of 1.0.

DSCR Loans in San Joaquin: Finance Rental Properties Without Income Docs