Question 1

Can I use projected rent if the property is vacant?

Accepted Answer

Yes. The appraisal includes a market rent analysis. Lenders use that number even without a signed lease.

Question 2

What if my DSCR is below 1.0?

Accepted Answer

Some lenders go down to 0.75 DSCR with larger down payments and higher rates. Expect 30-35% down for ratios under 1.0.

Question 3

Do I need rental property experience?

Accepted Answer

No. DSCR lenders care about the property's income, not your landlord résumé. First-time investors qualify.

Question 4

How do lenders calculate the DSCR ratio?

Accepted Answer

Monthly rent divided by total housing payment. $2,500 rent and $2,000 payment equals a 1.25 DSCR.

Question 5

Can I refinance an existing Cotati rental with DSCR?

Accepted Answer

Yes. Cash-out and rate-term refinances both work. Same DSCR and credit requirements as a purchase.

DSCR Loans in Cotati: Finance Rentals Without Income Verification