Question 1

Do I need to show personal income for a DSCR loan?

Accepted Answer

No. DSCR lenders qualify you on the property's rental income. Your W-2 or tax returns stay out of the equation.

Question 2

Can I get a DSCR loan on a Laguna Woods condo?

Accepted Answer

Possibly — but lender condo project approval is required first. Many Village units have HOA rental limits that complicate deals.

Question 3

What DSCR ratio do lenders require?

Accepted Answer

Most want 1.0 or above. That means appraised rent equals or exceeds the full monthly mortgage payment.

Question 4

What down payment does a DSCR loan require?

Accepted Answer

Expect 20-25% down. Some lenders go lower with stronger credit, but 25% is the most common requirement for condo deals.

Question 5

How is rent calculated for DSCR qualification?

Accepted Answer

The appraiser determines market rent — not the seller's estimate. That number is what lenders use in their coverage calculation.

Question 6

Are DSCR rates higher than conventional investor rates?

Accepted Answer

Generally yes. You're trading documentation flexibility for a slightly higher rate. Rates vary by borrower profile and market conditions.

DSCR Loans in Laguna Woods: Finance Investment Property on Rental Income