Question 1

What is a DSCR loan in Commerce?

Accepted Answer

A DSCR loan qualifies investors based on rental property income rather than personal income. It's ideal for Commerce investors who want financing without traditional income documentation.

Question 2

What DSCR ratio do I need for Commerce rental properties?

Accepted Answer

Most lenders require a DSCR of 1.0 or higher, meaning rent covers the mortgage payment. Some lenders accept ratios as low as 0.75 with larger down payments.

Question 3

Can I use projected rent for a DSCR loan?

Accepted Answer

Yes, many lenders accept rental appraisals showing market rent for the property. This works well for vacant properties or new purchases in Commerce.

Question 4

Do DSCR loans work for multi-family properties in Commerce?

Accepted Answer

Absolutely. DSCR loans finance 1-4 unit properties and sometimes larger multi-family buildings. The property's total rental income is used for qualification.

Question 5

How long does DSCR loan approval take?

Accepted Answer

DSCR loans typically close in 3-4 weeks. The simplified documentation process often makes approval faster than conventional investment loans.

DSCR Loans in Commerce, California – Financing for Rental Property Investors