Question 1

Can I use projected rent or does it need to be leased?

Accepted Answer

Appraisal determines market rent—no tenant required. If it's leased, actual rent must meet or exceed appraised rent to count.

Question 2

What if my DSCR is 0.95 but close to qualifying?

Accepted Answer

Interest-only payments or larger down payment can push you over 1.0. Some lenders also allow 0.75 DSCR with compensating factors.

Question 3

Do I need to show any personal income at all?

Accepted Answer

No income docs required—property income qualifies you. Lenders verify assets for down payment and reserves only.

Question 4

How do DSCR rates compare to conventional investor loans?

Accepted Answer

Expect 1.5-2.5% higher than conventional. Rates vary by borrower profile and market conditions—shop multiple lenders.

Question 5

Can I use DSCR for a property I'll owner-occupy part-time?

Accepted Answer

No—DSCR is investment property only. You can't occupy it as primary or secondary residence during the loan term.

DSCR Loans for Ross Investment Properties — Income-Based Financing for Marin Rentals