Question 1

What DSCR ratio do I need to qualify?

Accepted Answer

Most lenders require 1.0 minimum, meaning rent covers the mortgage. Higher ratios like 1.25 unlock better rates and terms.

Question 2

Can I use projected rent or does the property need tenants?

Accepted Answer

Lenders use appraised market rent, not actual leases. The property can be vacant during closing.

Question 3

Do DSCR loans work for short-term vacation rentals?

Accepted Answer

Yes, if local zoning allows it. Some lenders use projected short-term rental income with proper documentation and market analysis.

Question 4

How does my credit score affect DSCR loan terms?

Accepted Answer

Scores above 700 get the best pricing. Below 660, expect higher rates and stricter reserve requirements.

Question 5

Can I refinance an existing investment property with DSCR?

Accepted Answer

Absolutely. Many investors refinance to pull cash out or eliminate personal income verification from their original loan.

DSCR Loans for Rolling Hills Investment Properties — Income-Based Financing