Question 1

Can I use projected rent if the property is vacant?

Accepted Answer

Yes, lenders use the appraisal's fair market rent analysis for vacant properties. The appraiser researches comparable rentals in Millbrae to determine income potential.

Question 2

Do I need landlord experience for DSCR loan approval?

Accepted Answer

Most DSCR lenders don't require previous landlord experience. The property's income coverage matters more than your investment history, though some lenders may have requirements.

Question 3

What if my DSCR ratio falls below 1.0?

Accepted Answer

Some lenders approve ratios as low as 0.75 with larger down payments. You'll pay higher rates, and the property must still show strong income potential.

Question 4

How quickly can DSCR loans close in Millbrae?

Accepted Answer

Typical timeline runs 30-45 days. The appraisal with rental analysis adds time compared to conventional loans, especially in competitive Bay Area markets.

Question 5

Can I refinance an existing rental property with DSCR financing?

Accepted Answer

Yes, DSCR loans work for both purchases and refinances. This helps investors pull equity from performing rentals without income documentation requirements.

DSCR Loans in Millbrae: Income-Based Financing for Rental Property Investors