Question 1

What DSCR ratio do I need to qualify in Seaside?

Accepted Answer

Most lenders require 1.0 minimum, meaning rent equals the full mortgage payment. Ratios above 1.15 unlock better rates and lower reserves.

Question 2

Can I use a DSCR loan on a property I plan to rehab?

Accepted Answer

No. DSCR loans require the property to be rent-ready at closing with current or immediate rental income. Use bridge or hard money for rehab projects.

Question 3

Do DSCR lenders count future rent or only existing leases?

Accepted Answer

They use appraised market rent, not your pro forma projections. The appraisal includes a rent schedule based on comparable properties in Seaside.

Question 4

How much reserves do I need for a Seaside rental property?

Accepted Answer

Six months of PITIA payments is standard. More properties in your portfolio may increase reserve requirements to 9-12 months per property.

Question 5

Can I refinance an existing Seaside rental with a DSCR loan?

Accepted Answer

Yes. Rate-term refinances allow up to 80% LTV. Cash-out refinances cap at 75% LTV and require six months of seasoning on the current loan.

Question 6

What if my Seaside property DSCR is below 1.0?

Accepted Answer

Some lenders go down to 0.75 DSCR with larger down payments and higher credit scores. Expect rates 1-2% above standard DSCR pricing at that level.

DSCR Loans in Seaside: Qualify Real Estate Investors by Property Cash Flow, Not W-2 Income