Question 1

What DSCR ratio do I need in Salinas?

Accepted Answer

Most lenders require 1.0 minimum, meaning rent covers the mortgage payment. You'll get better rates at 1.25x or higher.

Question 2

Can I use DSCR for a property I already own?

Accepted Answer

Yes, DSCR works for refinances. You'll need a current appraisal with rent schedule and six months reserves post-closing.

Question 3

Do DSCR lenders allow interest-only payments?

Accepted Answer

Some lenders offer IO for the first 5-10 years. It lowers your payment but requires a higher DSCR ratio, usually 1.3x minimum.

Question 4

How do lenders calculate rental income on vacant Salinas properties?

Accepted Answer

They use market rent from the appraisal's rent schedule. The appraiser pulls comps from similar Salinas rentals to estimate income.

Question 5

Can I finance multiple Salinas rentals with DSCR loans simultaneously?

Accepted Answer

Yes, there's no portfolio limit. Each property qualifies independently based on its own cash flow and you meeting reserve requirements.

DSCR Loans in Salinas: Qualify Investors by Rental Income, Not Tax Returns