Question 1

What is a DSCR loan in Duarte?

Accepted Answer

A DSCR loan qualifies you based on your rental property's income instead of personal income. It compares monthly rent to mortgage payments to determine loan approval.

Question 2

What DSCR ratio do I need for a Duarte investment property?

Accepted Answer

Most lenders require a ratio of 1.0 or higher, meaning rent covers the full mortgage payment. Some programs accept 0.75 with larger down payments or higher credit scores.

Question 3

Can I use projected rent for DSCR loan qualification?

Accepted Answer

Yes, lenders use either actual lease agreements or rental appraisals showing market rent. An appraiser evaluates comparable Duarte rentals to determine projected income.

Question 4

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

Accepted Answer

Yes, DSCR loans finance single-family homes, condos, and multi-unit properties up to four units. All rental income from the property counts toward your debt service coverage.

Question 5

How long does DSCR loan approval take in Duarte?

Accepted Answer

DSCR loans typically close in 30-45 days. The process is often faster than conventional loans since no employment or income verification is required.

DSCR Loans in Duarte: Financing Investment Properties Based on Rental Income