Question 1

What DSCR ratio do I need to get approved?

Accepted Answer

Most lenders want 1.0 or above. Some go to 0.75 with more down. Higher is always better.

Question 2

Can I use projected rent on a vacant property?

Accepted Answer

Yes — most DSCR lenders use an appraiser's rent schedule. The property doesn't need to be occupied.

Question 3

Can I buy a Sacramento rental under an LLC?

Accepted Answer

Most DSCR lenders allow LLC vesting. Conventional loans typically don't — that's a real advantage here.

Question 4

Do DSCR loans work for short-term rentals in Sacramento?

Accepted Answer

Some lenders accept STR income. Others require long-term lease comparables. We know which lenders allow it.

Question 5

How is the DSCR rate different from a conventional rate?

Accepted Answer

DSCR rates run higher than conventional. It's a non-QM product — that flexibility has a cost. Rates vary by borrower profile and market conditions.

Question 6

How many DSCR loans can I have at once?

Accepted Answer

No hard cap like Fannie Mae's 10-loan limit. Many lenders allow unlimited DSCR loans if each property qualifies.

DSCR Loans in Sacramento: Qualify on Rental Income, Not Your W-2