Question 1

Can I use projected rent if the property is vacant?

Accepted Answer

Yes. The appraiser estimates market rent regardless of occupancy. Lenders use that number to calculate your DSCR.

Question 2

Do I need landlord experience for DSCR approval?

Accepted Answer

No. These loans don't require prior investment property ownership. First-time landlords qualify based on property income alone.

Question 3

How does Lompoc's military presence affect DSCR rates?

Accepted Answer

Stable rental demand from Vandenberg reduces lender risk. This can improve pricing compared to more volatile rental markets.

Question 4

What if my DSCR is below 1.0?

Accepted Answer

You can still get approved with ratios as low as 0.75. Expect higher rates and possibly larger down payments.

Question 5

Can I refinance an existing Lompoc rental with DSCR?

Accepted Answer

Absolutely. Cash-out refinances work too. The property just needs to generate enough rent to support the new loan.

DSCR Loans in Lompoc: Qualify Investment Properties by Cash Flow, Not W-2 Income