Question 1

What DSCR ratio do I need for a Tulelake rental property?

Accepted Answer

Most lenders require 1.0 minimum, but 1.25 gets better rates and approval odds. Rural markets like Tulelake often need higher ratios due to perceived risk.

Question 2

Can I use projected rent if the property is vacant?

Accepted Answer

Yes. The appraiser provides a market rent analysis showing what similar properties rent for. Lenders use that figure to calculate DSCR.

Question 3

Do DSCR loans work for manufactured homes in Tulelake?

Accepted Answer

Some lenders allow manufactured homes on permanent foundations. Many exclude them entirely, so confirm eligibility before making an offer.

Question 4

How much down payment do I need for a DSCR loan?

Accepted Answer

Expect 20-25% down for most programs. Higher down payments sometimes unlock better rates or lower DSCR requirements.

Question 5

What if my rental income doesn't cover the full mortgage payment?

Accepted Answer

Lenders won't approve loans with DSCR below their minimum threshold, usually 1.0. You'd need to increase rent, make a larger down payment, or choose a different loan type.

DSCR Loans in Tulelake: Property Cash Flow Qualifies You, Not Tax Returns