Question 1

What DSCR ratio do I need to qualify in Belmont?

Accepted Answer

Most lenders require 1.0 minimum, meaning rent covers the mortgage payment. Higher ratios like 1.25 get better rates and easier approval.

Question 2

Can I use a DSCR loan for a multi-unit property?

Accepted Answer

Yes, DSCR loans work for 1-4 unit properties. Multi-unit properties often have higher DSCR ratios since multiple rents cover one mortgage.

Question 3

Do I need reserves for a DSCR loan in San Mateo County?

Accepted Answer

Expect 6-12 months of reserves depending on credit and DSCR. Higher ratios and scores reduce reserve requirements with some lenders.

Question 4

How do lenders calculate DSCR for a vacant property?

Accepted Answer

They use a market rent analysis from the appraisal. The appraiser compares similar rentals in Belmont to estimate monthly income.

Question 5

Can I refinance an existing rental with a DSCR loan?

Accepted Answer

Yes, DSCR works for both purchase and refinance. You can pull equity or just remove personal income from the loan file.

DSCR Loans in Belmont: Finance Investment Properties Using Rental Income