Question 1

Can I use projected rent for a DSCR loan?

Accepted Answer

Yes, most lenders use a rental appraisal showing market rent. If the property is already rented, they'll use the lower of actual rent or appraised rent.

Question 2

Do DSCR loans require an LLC?

Accepted Answer

No. You can close in your personal name or an LLC. Some investors prefer LLCs for liability protection, but lenders allow either.

Question 3

What if my DSCR is below 1.0?

Accepted Answer

Programs exist down to 0.75 DSCR with compensating factors like higher credit or reserves. Expect a rate premium and potentially higher down payment.

Question 4

Can I refinance with a DSCR loan?

Accepted Answer

Yes. Both rate-term and cash-out refinances work. Some lenders require six months seasoning, others allow immediate cash-out after purchase.

Question 5

How long does DSCR loan approval take?

Accepted Answer

Typically 3-4 weeks. Simpler documentation means fewer delays than conventional. Most issues come from appraisal timing, not underwriting.

DSCR Loans in Redwood City: Finance Rentals Without Tax Returns