DSCR Down Payments

[Michael Ochoa]

Hello everyone! Second post here.I just spoke to a lender for the first time and had a few questions I wanted to clarify. I’ve heard that every lender is different, and wanted to come on here and ask some questions.

They told me that to qualify for a DSCR loan, I need to already have a property owner-occupied? Is this because they don't want you living in the property? I wish I had asked more questions, but I'm still getting used to having these conversations over the phone.

The lender also mentioned that I’d need to contribute at least 5% of the down payment myself, and the remaining 15–20% could be a gift — but not the full amount, that gifts can't be all 100% on down payments.  They brought up a few other things too, like unemployment being a concern and needing reserves. Could reserves come from a private lender, a family member, or a friend?

Is this guidance standard across lenders, or could it vary a lot depending on who I talk to? Thanks in advance for any insights!