Question 1

What DSCR ratio do I need to get approved in Montclair?

Accepted Answer

Most lenders want a DSCR of 1.1 or higher. Some allow 1.0, but expect a higher rate or stricter terms at that threshold.

Question 2

Can I hold the property in an LLC?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. It's one of the reasons investors prefer this product over conventional loans.

Question 3

Do I need to show tax returns or pay stubs?

Accepted Answer

No. DSCR loans qualify on the property's rental income only. Personal income documents are not required.

Question 4

What's the minimum down payment for a DSCR loan?

Accepted Answer

Expect 20-25% down. Some lenders allow 15% with stronger credit and DSCR, but that's less common.

Question 5

Can I use projected rent on a vacant property?

Accepted Answer

Yes, using a market rent appraisal. The appraiser provides a rent schedule and lenders use that figure for the DSCR calculation.

Question 6

How does a DSCR loan compare to a hard money loan in Montclair?

Accepted Answer

DSCR loans offer 30-year fixed terms and lower rates. Hard money is faster but meant for short holds, not long-term rental strategies.

DSCR Loans in Montclair, CA — Qualify on Rent, Not Your W-2