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Albany's rental market is heating up as new restaurants and housing projects reshape the East Bay. Measure W allocated $15 million for affordable housing at People's Park, signaling long-term neighborhood stability.
DSCR loans let you qualify based on the property's rental income, not your W-2s. That shift opens doors for investors whose day jobs don't reflect their portfolio strength.
620
Minimum FICO
25%
Typical Down Payment
1.25 or higher
DSCR Requirement
30–45 days
Closing Timeline
0.5–1% higher
Rate vs. Conventional
DSCR Loans in Albany
DSCR loans require a minimum 620 FICO and typically 25% down on investment properties. The lender pulls the property's rental income from a lease or rent roll and calculates the debt-service coverage ratio.
Down payment ranges from 20% to 30% depending on the property type and your credit. Reserves matter: lenders want 6 to 12 months of PITI in the bank.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Albany.
Albany's rental market is heating up as new restaurants and housing projects reshape the East Bay. Measure W allocated $15 million for affordable housing at People's Park, signaling long-term neighborhood stability.
DSCR loans let you qualify based on the property's rental income, not your W-2s. That shift opens doors for investors whose day jobs don't reflect their portfolio strength.
DSCR loans require a minimum 620 FICO and typically 25% down on investment properties. The lender pulls the property's rental income from a lease or rent roll and calculates the debt-service coverage ratio.
DSCR lending in California has grown as investors seek alternatives to traditional portfolio lending. Brokers and correspondent lenders compete on rates, reserves, and FICO floors.
Closing timelines run 30 to 45 days for DSCR loans, slightly longer than conventional owner-occupied mortgages. Underwriting focuses on the property appraisal, rent comps, and lease documentation.
DSCR loans make sense in Albany when you're buying a multi-unit property or a single-family rental that's already leased. The property's cash flow becomes your qualification story.
DSCR doesn't pencil out on owner-occupied homes or properties with no lease in place. If you're buying a primary residence, conventional or FHA is cheaper and faster.
Conventional investment loans require 20% down and your full financial picture — W-2s, tax returns, bank statements. DSCR strips away personal income and focuses only on the property's rental income.
The tradeoff: DSCR rates run higher because the lender has less visibility into your personal finances. Conventional loans let you tap your own income to qualify, which often yields a lower rate.
Albany's restaurant boom — Filipino, burger, Mexican, and Nicaraguan spots all opened recently — signals neighborhood momentum. Investors buying rental properties here benefit from rising foot traffic and tenant demand.
Alameda County's affordable housing push, including the $15 million Measure W allocation, shows long-term commitment to the region. That stability matters for rental property investors.
Most lenders require a minimum 620 FICO. Scores above 680 qualify for better rates. The property's cash flow matters more than your personal credit, but lenders still pull your score as a risk indicator.
No. DSCR loans are for investment properties only — multi-unit buildings, single-family rentals, or commercial real estate. For a primary residence, use conventional or FHA financing instead.
Typically 25% down on investment properties. Some lenders accept 20% with strong cash flow and reserves. The exact amount depends on the property type, your FICO, and the debt-service coverage ratio.
No-ratio financing lets you qualify on the property's potential income instead of an actual lease. You'll pay a higher rate and need stronger reserves, but you can close without a tenant in place.
Expect 30 to 45 days. Underwriting focuses on the property appraisal and rent comps, which takes longer than owner-occupied loans. Having lease documentation and tax returns ready speeds up the process.