Question 1

What DSCR do I need for a Taft rental property?

Accepted Answer

You need 1.0 minimum, meaning rent covers the mortgage payment. Properties with 1.25+ DSCR get better rates and easier approvals from more lenders.

Question 2

Can I use DSCR to buy a fixer-upper in Taft?

Accepted Answer

Only if it's already rented or rent-ready. Heavy rehabs need hard money or bridge loans first, then refinance to DSCR once stabilized and generating income.

Question 3

Do Taft DSCR loans require reserves?

Accepted Answer

Yes, typically 6-12 months of mortgage payments in liquid reserves. Energy market exposure in Taft makes lenders cautious about vacancy risk and payment gaps.

Question 4

How do DSCR rates compare to conventional investor loans?

Accepted Answer

DSCR rates run 0.5-1.5% higher than conventional, but you skip tax return requirements. Worth it for self-employed investors or those with complex income structures.

Question 5

Can I get a DSCR loan with a previous foreclosure?

Accepted Answer

Yes, most lenders allow DSCR loans 2-3 years after foreclosure with 680+ credit. Conventional investor loans require 7 years, making DSCR the faster comeback path.

DSCR Loans in Taft: Income Property Financing Without Tax Returns