DSCR loan on a new-construction spec home - can I qualify before it is rented?

You can absolutely close before there is a tenant. For a vacant or new-construction property, DSCR underwriting uses the appraiser's Form 1007 market rent schedule as the qualifying income - no signed lease required. That is the standard path for new builds and just-renovated units.

Two tips for a clean file: (1) make sure the appraiser pulls strong rental comps - a low 1007 is the most common reason a new-build DSCR comes in tight, and you can rebut it with your own comps; (2) some lenders apply a small vacancy factor, so build a little cushion into your target (aim for 1.10+ rather than 1.00). A 40-day close on a spec home is very doable. Call us once the appraisal is ordered - (818) 447-7035.

Did this twice on new builds in the DFW area. Closed both on the 1007 market rent with no lease in hand. Just make sure the builder is not dragging on the certificate of occupancy - that was my only delay both times.