Question 1

Can I use projected rent on a property I don't own yet?

Accepted Answer

Yes. Appraisers provide market rent schedules for DSCR qualification. The property doesn't need current tenants at closing.

Question 2

Do DSCR loans require reserve funds after closing?

Accepted Answer

Most lenders want 6-12 months of principal and interest in reserves per property. Requirements increase with multiple financed properties.

Question 3

Can I buy a Windsor property in an LLC with DSCR financing?

Accepted Answer

Yes. DSCR lenders allow LLC purchases and vesting. Form the entity before escrow to streamline closing.

Question 4

What happens if my DSCR is below 1.0?

Accepted Answer

Some lenders approve 0.75-0.99 ratios with 25-30% down. Rates increase and lender options decrease below 1.0.

Question 5

How long does DSCR underwriting take in Windsor?

Accepted Answer

Expect 3-4 weeks from application to clear-to-close. Appraisal delays extend timelines, especially for unique wine country properties.

Question 6

Can I cash-out refinance with a DSCR loan?

Accepted Answer

Yes. DSCR cash-out programs allow up to 75% LTV on investment properties based on current rental income.

DSCR Loans in Windsor: Qualify by Property Income, Not Your W-2