Question 1

Can I use projected Airbnb income for DSCR qualification in Sierra Madre?

Accepted Answer

Only if short-term rentals are permitted and you provide comp data. Most appraisers default to long-term rent comps unless you prove STR viability and legality.

Question 2

What DSCR do I need to qualify with 20% down?

Accepted Answer

Minimum 1.0 DSCR, but expect better rates at 1.25 or higher. Below 1.2, lenders add pricing hits or require larger down payments.

Question 3

Do I need reserves for a DSCR loan in Sierra Madre?

Accepted Answer

Yes, expect 6-12 months of PITIA in reserves. More properties financed means higher reserve requirements across your portfolio.

Question 4

Can I close a DSCR loan in an LLC name?

Accepted Answer

Yes, most DSCR lenders allow LLC vesting. You'll still personally guarantee the loan and provide your personal credit score.

Question 5

How do lenders calculate DSCR for a 2-4 unit property?

Accepted Answer

They divide total projected rent by total PITIA. Each unit needs market-rate comps, and vacancy factors apply to the income calculation.

DSCR Loans in Sierra Madre: Qualify by Rental Income, Not Your W-2