Question 1

What DSCR ratio do I need to qualify in Merced?

Accepted Answer

Most lenders want 1.1 or above. Some go down to 0.75 with strong credit and reserves.

Question 2

Can I use projected rent to qualify?

Accepted Answer

Yes. Most DSCR lenders accept an appraiser's market rent estimate, not just current leases.

Question 3

Can I close a DSCR loan in an LLC?

Accepted Answer

Most DSCR programs allow LLC vesting. It's one reason investors prefer this product over conventional.

Question 4

How much do I need to put down in Merced?

Accepted Answer

Expect 20–25% down. Some lenders go to 15% with a higher rate and stronger credit profile.

Question 5

Does UC Merced student rental income count?

Accepted Answer

It can. Per-room income is lender-specific — confirm eligibility before you're under contract.

Question 6

How is DSCR different from a conventional investor loan?

Accepted Answer

Conventional investor loans require personal income verification. DSCR loans only look at the property's rent.

DSCR Loans in Merced, CA — Qualify on Rental Income