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Eureka's rental market is drawing investor attention as the Great Redwood Trail master plan gains traction, signaling long-term infrastructure investment across Humboldt County.
Investors in Eureka typically work with properties in the $300,000 to $500,000 range. DSCR underwriting focuses on the property's debt-service coverage ratio — the monthly rent divided by the monthly payment.
680+
Minimum FICO
15–25%
Down Payment Range
1.25
Standard DSCR Ratio
30–45 days
Typical Close Timeline
DSCR Loans in Eureka
DSCR loans require a 680+ FICO, though 700+ is safer. Down payment ranges from 20% to 25% for standard DSCR; no-ratio programs may accept 15% down. The property's monthly rent must cover the loan payment at your target ratio.
Humboldt County's median household income is $61,135. That figure matters less on a DSCR loan — the property's income is what counts. Lenders verify rent with a lease or rent roll. Bank statements showing deposits confirm actual cash flow.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Eureka.
Eureka's rental market is drawing investor attention as the Great Redwood Trail master plan gains traction, signaling long-term infrastructure investment across Humboldt County.
Investors in Eureka typically work with properties in the $300,000 to $500,000 range. DSCR underwriting focuses on the property's debt-service coverage ratio — the monthly rent divided by the monthly payment.
DSCR loans require a 680+ FICO, though 700+ is safer. Down payment ranges from 20% to 25% for standard DSCR; no-ratio programs may accept 15% down. The property's monthly rent must cover the loan payment at your target ratio.
DSCR lending in California has expanded significantly. Portfolio lenders, credit unions, and some correspondent banks now offer these loans. Rates are typically 0.5% to 1.0% higher than conventional conforming loans because the risk profile is different.
Closing timelines run 30 to 45 days. Appraisals are standard. Some lenders require a personal guarantee; others don't. Shop multiple lenders — DSCR pricing and terms vary widely.
DSCR loans make sense in Eureka when you're buying a rental property and your personal income doesn't reflect the investment's true earning potential. If you have W-2 income from a day job but the rental cash flow is strong, DSCR bypasses that mismatch.
They don't make sense if you're buying a primary residence or if the property's rent is marginal. A 1.0 ratio means zero monthly cushion — one vacancy wipes out your payment.
Conventional loans require you to qualify on your personal income — W-2s, tax returns, and debt-to-income ratio. DSCR ignores your job and looks at the property's rent. If your day job doesn't support the loan amount, DSCR opens the door.
The tradeoff: DSCR rates run higher and down payments are steeper. Conventional at 20% down has no PMI and lower rates. DSCR at 20% down costs more per month but lets you buy investment properties that conventional underwriting would reject.
Godwit Days, the 30-year-old spring migration bird festival returning April 16–19, draws thousands to Humboldt County. That kind of seasonal tourism supports short-term rental income for investors.
The Humboldt County Trades Day event highlights vocational careers and workforce development. A growing skilled workforce means stable rental demand from workers relocating for jobs. Long-term rental stability supports DSCR qualification.
DSCR stands for debt-service coverage ratio. It's a loan for investment properties where the property's monthly rent is the primary income source. Use it when you're buying a rental and your W-2 income doesn't support the loan amount.
Standard DSCR is 1.25 — the monthly rent must be 125% of the monthly payment. Some lenders offer 1.0 DSCR or no-ratio programs for borrowers with strong reserves and excellent credit. Call for your lender's specific floor.
Most DSCR lenders require 20–25% down. Some no-ratio programs accept 15% down if you have six months or more in reserves. The exact minimum depends on your credit, the property's cash flow, and your lender's overlays.
Lenders ask for a signed lease or rent roll. Bank statements showing deposits confirm actual cash flow. Tax returns showing rental income on Schedule E are helpful but not always required on DSCR loans.
No. DSCR loans are for investment properties only. If you're buying a primary residence, use a conventional, FHA, or VA loan instead. DSCR underwriting assumes the property will be rented out.