Question 1

What DSCR ratio do I need for a Palm Desert investment property?

Accepted Answer

Most lenders require a DSCR of at least 1.0, meaning rent covers the mortgage payment. Some approve ratios as low as 0.75 with larger down payments and strong credit.

Question 2

Can I use projected rent for a DSCR loan in Palm Desert?

Accepted Answer

Yes, lenders accept appraisal-based market rent projections for the property. They compare similar Palm Desert rentals to determine what your property should generate.

Question 3

Do DSCR loans work for Palm Desert vacation rentals?

Accepted Answer

Many DSCR lenders finance vacation rentals in Palm Desert. They use projected short-term rental income based on comparable properties in the area.

Question 4

How long does DSCR loan approval take in Riverside County?

Accepted Answer

DSCR loans typically close in 30 to 45 days. The process moves faster than conventional loans since no tax returns or employment verification is needed.

Question 5

What down payment is required for Palm Desert DSCR loans?

Accepted Answer

Most DSCR lenders require 20% to 25% down for Palm Desert properties. Larger down payments may unlock better rates and terms from lenders.

DSCR Loans in Palm Desert: Financing for Riverside County Investment Properties