Question 1

What DSCR ratio do I need in Rancho Santa Margarita?

Accepted Answer

Most lenders want a 1.2 DSCR or higher. Some programs allow down to 1.0, but expect a higher rate and larger down payment.

Question 2

Can I use a short-term rental for DSCR qualification?

Accepted Answer

Some lenders allow it using Airbnb income history. Most require 12 months of platform statements and apply a haircut to the income.

Question 3

Can I close a DSCR loan in an LLC?

Accepted Answer

Yes. Most non-QM lenders allow LLC vesting. It's one of the main reasons investors prefer DSCR over conventional investor loans.

Question 4

Do I need tax returns for a DSCR loan?

Accepted Answer

No. DSCR lenders don't review personal income or tax returns. Approval is based on the property's rental income only.

Question 5

How is my rental income calculated for DSCR?

Accepted Answer

Lenders use the appraiser's market rent estimate or your current lease — whichever is lower. This is the figure that drives approval.

Question 6

What property types qualify for DSCR in RSM?

Accepted Answer

Single-family, condos, townhomes, and 2-4 unit properties typically qualify. Warrantable condo status affects lender options.

DSCR Loans in Rancho Santa Margarita, CA