Question 1

What does DSCR stand for in mortgage lending?

Accepted Answer

Debt Service Coverage Ratio. It measures if a property's rent covers the mortgage. A ratio of 1.0 means rent equals the payment exactly.

Question 2

Can I use a DSCR loan to buy in Fortuna as an LLC?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. It's one of the reasons investors prefer this program over conventional financing.

Question 3

Do I need to show personal income for a DSCR loan?

Accepted Answer

No personal income docs are required. The lender qualifies the loan based on the rental property's income potential.

Question 4

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

Accepted Answer

Most lenders start at 620. Better terms kick in above 680. Higher scores also help if your DSCR ratio is below 1.0.

Question 5

Are DSCR loans more expensive than conventional loans?

Accepted Answer

Typically yes — non-QM programs carry a rate premium. Rates vary by borrower profile and market conditions. The tradeoff is qualification flexibility.

Question 6

Can I use projected rent if the property is vacant?

Accepted Answer

Yes. Many lenders accept a market rent analysis from the appraiser. Actual lease is preferred, but vacant properties can still qualify.

DSCR Loans in Fortuna, CA — Fund Rentals on Cash Flow