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DSCR Loans in Parlier
Parlier's rental market runs on agriculture workers and young families who need affordable housing. Most investors here buy single-family homes in the $200K-$350K range.
DSCR loans work well for Parlier because rents often hit 1.2-1.5% of purchase price monthly. A $250K duplex can rent for $3,000 total, easily clearing the 1.0 DSCR minimum most lenders require.
Lenders calculate DSCR by dividing monthly rent by your PITIA payment. You need 1.0 minimum for most programs, 1.25 for best rates.
Credit minimums start at 640 for 1.25 DSCR properties. Expect 20-25% down on single-family homes, 25-30% on 2-4 units in Parlier.
Not every lender funds DSCR loans in Parlier because Fresno County is considered secondary market. We work with 40+ Non-QM lenders who actively lend here.
Rate spreads run 1.5-3% above conventional. You'll see 7.5-9.5% on DSCR loans when conventional sits at 6.5%, depending on DSCR ratio and down payment.
Most Parlier investors I work with use DSCR loans when they already own 4+ mortgaged properties and can't qualify conventional. Others run businesses with heavy write-offs that tank their taxable income.
Get an appraisal with rent schedule before you shop lenders. If the appraiser pegs market rent at $1,400 but you need $1,600 to hit 1.0 DSCR, you'll know immediately the deal won't work.
Bank Statement loans verify your income through deposits. DSCR loans ignore your income entirely and only look at property cash flow.
Hard Money costs 9-12% with 2-4 points upfront but closes in days. DSCR runs 7.5-9.5% with standard closing costs over 3-4 weeks. Use Hard Money for rehabs, DSCR for stabilized rentals.
Parlier has high tenant turnover because many renters follow seasonal agriculture work. Lenders want to see 12-month leases, not month-to-month arrangements.
Appraisers pull comps from Parlier, Reedley, and sometimes Selma. If your property needs work, expect rent schedules to come in conservative. Properties near schools and away from Highway 99 appraise strongest.
Most lenders require 1.0 minimum, meaning rent covers your payment. You'll get better rates at 1.25 or higher.
You can use appraiser's market rent estimate. Current tenants help but aren't required for DSCR qualification.
Some lenders restrict to larger metros. We work with lenders who actively fund Fresno County secondary markets.
Expect rates 1.5-3% higher than conventional. A 6.5% conventional rate means 8-9.5% on DSCR, depending on your deal.
Minimum 20% on single-family, 25% on duplexes or fourplexes. Higher DSCR ratios sometimes allow lower down payments.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.