Question 1

Can I use rental income to qualify for an investor loan in Berkeley?

Accepted Answer

Yes — DSCR loans qualify you on the property's rent, not your income. The rent must cover the mortgage payment at a 1.0x ratio or higher.

Question 2

Do Berkeley's rent control laws affect my loan approval?

Accepted Answer

Lenders don't underwrite rent control directly, but it limits your rent upside. That can affect your DSCR ratio if current rents are below market.

Question 3

How much do I need to put down on an investment property?

Accepted Answer

Most investor loan programs require 20–25% down. Some DSCR lenders allow 20% with strong credit and a solid debt coverage ratio.

Question 4

Can I use a DSCR loan to buy a small multifamily in Berkeley?

Accepted Answer

Yes. Most DSCR programs go up to 4 units. Larger multifamily deals typically require commercial financing with different qualification rules.

Question 5

What credit score do I need for an investor loan?

Accepted Answer

Most non-QM investor programs start at 620. Better pricing kicks in at 680 and above. Rates vary by borrower profile and market conditions.

Question 6

Are short-term rentals like Airbnb a viable strategy in Berkeley?

Accepted Answer

Berkeley restricts short-term rentals heavily. Most investor deals here are underwritten on long-term market rents, not short-term projections.

Investor Loans in Berkeley, CA — Built for Rentals & Flips