Question 1

What DSCR ratio do I need to qualify in Madera?

Accepted Answer

Most lenders require at least 1.0 — rent equals or exceeds the payment. A ratio of 1.25 or higher typically earns better pricing.

Question 2

Can I use projected rent on a vacant Madera property?

Accepted Answer

Yes. Lenders use appraised market rent from the appraisal report. The property does not need an active lease to qualify.

Question 3

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

Accepted Answer

Yes, most DSCR programs cover 1-4 unit properties. Some lenders go up to 8 units. We match your deal to the right program.

Question 4

How is my DSCR ratio calculated?

Accepted Answer

Divide the monthly gross rent by the monthly PITIA — that is principal, interest, taxes, insurance, and HOA if applicable. Above 1.0 means positive cash flow coverage.

Question 5

Can I get a 30-year fixed DSCR loan in Madera?

Accepted Answer

Yes. Most DSCR programs offer 30-year fixed and ARM options. Fixed rates provide stability for long-term Madera rental holds.

Question 6

Are there prepayment penalties on DSCR loans?

Accepted Answer

Often yes — many DSCR loans carry 3 to 5 year prepayment penalties. Review the terms before signing. We flag this on every deal.

DSCR Loans in Madera, CA — Qualify on Rent, Not W-2s