Question 1

What DSCR ratio do I need to qualify in San Carlos?

Accepted Answer

Most lenders accept 1.0 or higher, meaning rent equals your total payment. Ratios of 1.25+ unlock better rates and lower reserve requirements.

Question 2

Can I use projected rent instead of current rent?

Accepted Answer

Yes, if the property is vacant or owner-occupied. Lenders use appraisal market rent sections to calculate DSCR on non-rented properties.

Question 3

Do DSCR loans allow cash-out refinancing?

Accepted Answer

Yes, but most lenders cap cash-out at 70-75% LTV. Rate-and-term refis can go to 80% loan-to-value on strong credit profiles.

Question 4

How do rates compare to conventional investor loans?

Accepted Answer

DSCR rates run 1-2% higher than conventional. You pay for the no-income-verification convenience. Rates vary by borrower profile and market conditions.

Question 5

Can I finance multiple San Carlos properties with DSCR loans?

Accepted Answer

Yes, most lenders allow 10+ financed properties on DSCR programs. Each property qualifies independently based on its own rental income and DSCR.

Question 6

What reserves do San Carlos DSCR lenders require?

Accepted Answer

Expect 6-12 months of reserves per property financed. Higher loan amounts and lower credit scores push reserve requirements toward the 12-month end.

DSCR Loans in San Carlos: Income Property Financing Without Tax Returns