Question 1

Can I use DSCR loans for a property I plan to buy and rent out?

Accepted Answer

Yes, DSCR loans work for purchase transactions. Lenders use an appraisal's market rent estimate if no lease exists yet.

Question 2

Do I need reserves for a DSCR loan in Daly City?

Accepted Answer

Most lenders want 6-12 months of reserves per property. That includes principal, interest, taxes, insurance, and HOA if applicable.

Question 3

What if my rental income is slightly below the debt payment?

Accepted Answer

Some lenders allow 0.75x DSCR with a larger down payment or higher credit score. Expect a rate premium and stricter terms.

Question 4

Can I finance multiple Daly City properties with DSCR loans?

Accepted Answer

Yes, DSCR loans have no cap on the number of financed properties. Each property qualifies independently based on its own rental income.

Question 5

How do lenders verify rental income if the property is vacant?

Accepted Answer

They use the appraisal's market rent section. The appraiser compares your property to similar rentals and estimates what it should command.

DSCR Loans in Daly City: Qualify by Rental Income, Not Tax Returns