Question 1

What DSCR ratio do I need to qualify in El Cajon?

Accepted Answer

Most lenders require a minimum 1.0 ratio. A ratio of 1.25 or higher typically unlocks better rates and terms.

Question 2

Can I use projected rent instead of current rent?

Accepted Answer

Some lenders accept an appraiser's rent schedule for vacant properties. Others require an active lease. This varies by lender.

Question 3

Do DSCR loans work for multi-family in El Cajon?

Accepted Answer

Yes. Most DSCR programs cover 1–4 unit properties. Some lenders go up to 8 units under non-QM guidelines.

Question 4

How does my credit score affect my DSCR rate?

Accepted Answer

A 720+ score gets you the best pricing. Scores below 660 will cost you in rate. Rates vary by borrower profile and market conditions.

Question 5

Can I close a DSCR loan in an LLC?

Accepted Answer

Yes. Many investors prefer LLC vesting for liability protection. Confirm your lender allows it before you go into escrow.

Question 6

Is there a prepayment penalty on DSCR loans?

Accepted Answer

Most DSCR loans carry a step-down prepayment penalty — often 3 to 5 years. Factor that into your exit strategy before closing.

DSCR Loans in El Cajon: Finance Investment Property on Rental Income