Question 1

Can I get an investor loan with an LLC in Commerce?

Accepted Answer

Yes, most DSCR lenders allow LLC ownership. Some charge 0.125-0.25% higher rates for entity vesting versus personal name.

Question 2

What debt service coverage ratio do Commerce lenders require?

Accepted Answer

Minimum 1.0 DSCR for most programs, meaning rent covers the mortgage payment. Better rates start at 1.25 DSCR and improve as ratio climbs.

Question 3

Do investor loans in Commerce require reserves?

Accepted Answer

Expect 6-12 months of mortgage payments in reserves. More properties in your portfolio means higher reserve requirements from most lenders.

Question 4

Can I use projected rents for a vacant Commerce property?

Accepted Answer

Some lenders allow market rent appraisals on vacant units. Others require 3-6 months of actual rent collection before refinancing into better terms.

Question 5

How fast can investor loans close in Commerce?

Accepted Answer

DSCR loans typically close in 21-30 days. Hard money can fund in 7-10 days when you need speed on competitive deals.

Investor Loans in Commerce: Finance Your LA County Cash Flow Property