Question 1

What's the minimum down payment for an investor loan in Orland?

Accepted Answer

Typically 20% to 25%. Some lenders go as low as 15% for strong DSCR and credit, but 20% is the standard floor. The higher your down payment, the easier the DSCR math becomes.

Question 2

Do I need two years of tax returns to qualify?

Accepted Answer

Yes. Lenders want full returns for the past two years to verify your income and business stability. If you're self-employed or own rental property, those returns are non-negotiable.

Question 3

What is DSCR and why does it matter?

Accepted Answer

DSCR is debt-service coverage ratio — your annual rental income divided by your annual mortgage, taxes, insurance, and HOA. A DSCR of 1.25 means the property generates 25% more income than the loan costs.

Question 4

Can I use no-ratio financing if my rental income is low?

Accepted Answer

Yes. No-ratio financing is available when standard DSCR doesn't work. You'll pay a higher rate and need stronger reserves, but it opens the door for newer rentals or seasonal properties with uneven income.

Question 5

How long does it take to close an investor loan?

Accepted Answer

Plan for 45 to 60 days. Investor loans take longer than owner-occupied because lenders verify rental income, review leases, and order appraisals based on cash flow. Brokers can expedite by shopping multiple lenders early.

Investor Loans in Orland: Finance Your Rental Property