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Ferndale is a small Victorian-era city in Humboldt County. Its historic character and tourism draw make it a niche but real rental market.
DSCR loans work here because approval depends on what the property earns — not your W-2. That matters in a town where many investors are self-employed.
620–680
Min Credit Score
1.10
Min DSCR Ratio
20–25%
Down Payment
None
Income Docs Required
3–4 weeks
Est. Close Time
DSCR Loans in Ferndale
Lenders calculate your DSCR by dividing monthly rent by your monthly debt payment. A ratio of 1.0 means the property breaks even. Most lenders want 1.1 or higher.
Expect a minimum 620-680 credit score depending on the lender. Down payments typically start at 20-25% for investment properties.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Ferndale.
Ferndale is a small Victorian-era city in Humboldt County. Its historic character and tourism draw make it a niche but real rental market.
DSCR loans work here because approval depends on what the property earns — not your W-2. That matters in a town where many investors are self-employed.
Lenders calculate your DSCR by dividing monthly rent by your monthly debt payment. A ratio of 1.0 means the property breaks even. Most lenders want 1.1 or higher.
DSCR is a non-QM loan. Most retail banks won't touch it. You need a broker with access to wholesale non-QM lenders who specialize in investor products.
Rates on DSCR loans run higher than conventional. Rates vary by borrower profile and market conditions. The tradeoff is speed and flexibility.
Short-term rental income can be tricky. Some lenders use Airbnb revenue. Others require a market rent appraisal instead. Know which approach your lender uses before you apply.
In a small market like Ferndale, property valuations can be inconsistent. A strong appraisal is critical. Get a lender who orders appraisals in rural Humboldt County regularly.
Hard money loans close faster but carry higher rates and short terms. DSCR loans give you a 30-year fixed option, which actually works for buy-and-hold investors.
Bank statement loans look at your personal deposits. DSCR loans ignore your income entirely. If your rental cash flow is strong, DSCR is the cleaner path.
Ferndale's Victorian architecture draws visitors year-round. Short-term rentals in historic homes can generate solid income — but zoning rules in Humboldt County matter.
Rural properties sometimes face limited comparable sales. That can compress appraisal values and affect your DSCR calculation. Work with a lender who understands this dynamic.
Some lenders accept Airbnb income with booking history. Others use a market rent appraisal instead. Ask upfront which method your lender applies.
Most lenders want a ratio of 1.1 or higher. A ratio below 1.0 means the rent doesn't cover the debt payment — that's a hard stop for most programs.
No. That's the main advantage. Approval is based on the property's income, not yours.
Plan for 20-25% down. Some lenders go to 30% for rural markets or lower DSCR ratios.
Yes. DSCR is non-QM, so rates run higher. Rates vary by borrower profile and market conditions.
DSCR loans can close in 3-4 weeks with a clean file. Rural appraisal scheduling can add time — build that buffer in.