How to use DSCR on a mortgage for an STR?

[Tommy C.]

Hey BP!

I need some help from the pros with my question here:

How can one use DSCR to qualify for a mortgage on a short term rental property with no trailing 12 month income? (i.e. new builds)

I understand that in a typical situation, with rental history, the DSCR would have to be greater than 1.0 or 1.5, etc… but what about situations where there is no history to provide?

- Will lenders acknowledge market rent to calculate the DSCR?

- Is it only long term market rent they would acknowledge?

- What is the standard data provider for market rental rates?

I want to take the DSCR route to avoid maxing out my personal DTI ratio.

Thanks in advance!