Question 1

Do I need to show tax returns for a DSCR loan in Arroyo Grande?

Accepted Answer

No. DSCR loans qualify you based on the property's rental income, not your personal tax returns. Credit score and down payment matter, but your tax situation doesn't.

Question 2

What DSCR ratio do I need to qualify?

Accepted Answer

Most lenders require 1.0 minimum—rental income equals the mortgage payment. Ratios above 1.25 unlock better rates and easier approvals across our lender network.

Question 3

Can I use a DSCR loan for a vacation rental property?

Accepted Answer

Some lenders allow it, but most restrict DSCR to long-term rentals. Vacation rental income gets treated differently in underwriting. We can find lenders who accept it if the numbers work.

Question 4

How much down payment do DSCR loans require?

Accepted Answer

Expect 20-25% down for single-family rentals in Arroyo Grande. Multifamily properties sometimes require 25-30%. Down payment size affects your rate and available lender options.

Question 5

Do DSCR loans work for first-time landlords?

Accepted Answer

Yes. Lenders focus on the property's income potential, not your landlord experience. Strong rent comps and a solid DSCR ratio matter more than your investment history.

Question 6

How do lenders calculate rental income for DSCR loans?

Accepted Answer

An appraiser provides a market rent analysis based on comparable rentals. Lenders use that number, not your current lease. Actual rent only matters if it's higher than market rent.

DSCR Loans in Arroyo Grande: Qualify on Rental Income, Not Personal Tax Returns