Question 1

Can I use projected rent for a vacant Long Beach property?

Accepted Answer

Most lenders require an appraisal with market rent analysis. A few accept this for vacant units, but rates run higher than properties with leases in place.

Question 2

Do DSCR loans work for multi-family properties in Long Beach?

Accepted Answer

Yes, up to four units using residential DSCR programs. Larger buildings need commercial financing with different terms and structure.

Question 3

How does DSCR calculation work?

Accepted Answer

Monthly rent divided by monthly payment (principal, interest, taxes, insurance, HOA). A $3,000 rent with a $2,400 payment gives you a 1.25 DSCR.

Question 4

Can I refinance into a DSCR loan?

Accepted Answer

Yes, if you have an existing rental property. The process works like a purchase: approval depends on current rent versus new payment.

Question 5

What if the property needs repairs before renting?

Accepted Answer

Some lenders offer renovation DSCR loans with funds held in escrow. You draw money for improvements, then refinance based on the completed rent.

DSCR Loans in Long Beach: Qualify by Rental Income, Not Tax Returns