Question 1

What DSCR ratio do I need to qualify in Chico?

Accepted Answer

Most lenders want 1.0 or above. Some go to 0.75 with a bigger down payment and stronger credit.

Question 2

Can I use Airbnb income for a DSCR loan near campus?

Accepted Answer

Many lenders require a signed long-term lease. Short-term rental projections often don't count. Ask before assuming.

Question 3

Does wildfire risk affect my DSCR loan approval?

Accepted Answer

Yes. Some lenders add overlays for Butte County fire zones. Higher insurance premiums can also lower your DSCR.

Question 4

Do I need to show tax returns for a DSCR loan?

Accepted Answer

No. DSCR lenders qualify you on the property's rent, not your personal income or tax returns.

Question 5

What's the minimum down payment for DSCR in California?

Accepted Answer

Expect 20-25% down on most DSCR loans. Some lenders require more in high-risk counties like Butte.

Question 6

How is DSCR different from a conventional investment loan?

Accepted Answer

Conventional loans check your DTI and tax returns. DSCR skips that and focuses only on the property's rent coverage.

DSCR Loans in Chico, CA — Qualify on Rent, Not Your W-2