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Bishop's rental market is heating up as investors recognize the Eastern Sierra's year-round appeal. Spring tourism season brings steady occupancy to vacation rentals and long-term leases alike.
Inyo County's median household income of $72,432 means rental yields on modest properties can exceed owner income — exactly where DSCR shines. You're buying cash flow, not just real estate.
620
Minimum FICO
20–25%
Typical Down Payment
1.0x–1.25x
DSCR Ratio Target
30–45 days
Underwriting Timeline
2–3% of loan
Closing Costs
DSCR Loans in Bishop
DSCR loans typically require a 620+ FICO score and 20% to 25% down payment. The property's net operating income must cover the monthly loan payment by a set ratio — usually 1.0x or higher.
Bishop properties with solid occupancy and reasonable expense ratios qualify easily. A duplex or small multi-unit generating $3,000 monthly rent against a $2,500 payment hits the 1.2x ratio lenders want.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Bishop.
Bishop's rental market is heating up as investors recognize the Eastern Sierra's year-round appeal. Spring tourism season brings steady occupancy to vacation rentals and long-term leases alike.
Inyo County's median household income of $72,432 means rental yields on modest properties can exceed owner income — exactly where DSCR shines. You're buying cash flow, not just real estate.
DSCR loans typically require a 620+ FICO score and 20% to 25% down payment. The property's net operating income must cover the monthly loan payment by a set ratio — usually 1.0x or higher.
DSCR lending is a specialist market. Fewer lenders offer it than conventional or FHA, and those who do focus on investors with clear rental income. Brokers typically source DSCR loans from portfolio lenders and private investors rather than agency channels.
Underwriting takes 30–45 days because the lender must verify occupancy, lease terms, and expense documentation. Appraisals are stricter — the appraiser values the property as an income asset, not a residence. Closing costs run 2% to 3% of the loan amount.
DSCR makes sense in Bishop when you're buying a rental property and your W-2 income doesn't match the property's earning potential. A seasonal worker or self-employed investor with strong rental income but thin tax returns qualifies instantly.
It doesn't work for owner-occupied homes or properties with no rental history. DSCR is strictly for investors. If you're buying a primary residence or a vacation home you'll use personally, conventional or FHA is faster and cheaper.
Conventional loans require your personal income and tax returns to qualify, even if the property generates more cash flow than you earn. DSCR flips that — the property's income is the only income that matters.
The tradeoff: DSCR rates run higher than conventional (typically 0.5% to 1.0% above par) and down payments are steeper. Closing is slower. But if your rental income is strong and your personal tax returns are messy, DSCR saves the deal.
April is peak season for Eastern Sierra tourism. The Mammoth Times reports that spring nature activities drive visitor volume through Bishop. Investors buying rental properties here benefit from predictable seasonal demand and year-round occupancy potential.
Bishop Parks & Recreation Commission meetings signal ongoing city investment in amenities. A well-maintained parks system and active recreation program support both resident retention and visitor appeal — both boost rental income for property owners.
Most lenders require 620+ FICO. Some portfolio lenders go as low as 600 if the property's cash flow is strong. The property's income matters more than your personal credit.
No. DSCR is for investment properties only. If you're buying a home to live in, conventional or FHA is the right path. DSCR requires rental income documentation and owner-occupancy disqualifies you.
Typically 20% to 25%. Some lenders go as low as 15% if the property's debt service coverage ratio is 1.25x or higher. The stronger the rental income, the lower the down payment may go.
No — that's the main advantage. DSCR lenders qualify you on the property's rent rolls and leases, not your personal income. You'll still provide an appraisal and proof of occupancy, but not personal tax returns.
DSCR is the property's annual net operating income divided by the annual loan payment. A 1.2x ratio means the property generates 20% more income than the payment requires. Lenders typically want 1.0x to 1.25x; higher is safer.