Question 1

Can I use projected rent for a new purchase?

Accepted Answer

Yes, lenders order a rental appraisal showing market rent for comparable properties. That projected rent qualifies you if it meets the DSCR minimum.

Question 2

Do I need an LLC to get a DSCR loan in Morro Bay?

Accepted Answer

No, but many lenders prefer LLC ownership for liability protection. You can close in personal name or entity depending on your setup.

Question 3

What if my DSCR is below 1.0?

Accepted Answer

Some lenders approve 0.75-0.99 DSCR with higher rates and bigger down payments. We shop programs that accept lower ratios when property fundamentals are strong.

Question 4

How do lenders handle Airbnb income for Morro Bay properties?

Accepted Answer

Most require 12-24 months of documented short-term rental history through your platform. New hosts need to use market rent projections instead of actual STR data.

Question 5

Can I refinance an existing rental into a DSCR loan?

Accepted Answer

Yes, cash-out and rate-term refinances both work. Lenders base approval on current rental income and property value, not your original purchase terms.

DSCR Loans in Morro Bay: Qualify by Property Income, Not Paystubs