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McFarland is a small agricultural city in Kern County. Rental demand here is steady, driven by farmworkers and working families who need affordable housing.
That consistent tenant base is exactly what DSCR lenders want to see. Strong occupancy supports the rent-to-debt ratio that gets these loans approved.
620+
Min Credit Score
1.0 (1.25 preferred)
Min DSCR Ratio
None
Income Docs Required
20–25%
Down Payment
Up to 30-year fixed
Loan Term Available
DSCR Loans in McFarland
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by the monthly mortgage payment. You need that number at 1.0 or higher — most lenders prefer 1.25.
Most DSCR programs require a 620 minimum credit score and 20-25% down. No tax returns. No pay stubs. The rental income does the qualifying.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in McFarland.
McFarland is a small agricultural city in Kern County. Rental demand here is steady, driven by farmworkers and working families who need affordable housing.
That consistent tenant base is exactly what DSCR lenders want to see. Strong occupancy supports the rent-to-debt ratio that gets these loans approved.
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by the monthly mortgage payment. You need that number at 1.0 or higher — most lenders prefer 1.25.
DSCR is a non-QM product. Most retail banks won't touch it. You need wholesale lenders who specialize in investor loans.
At SRK CAPITAL, we work with 200+ wholesale lenders. Several of them actively price DSCR loans in rural Kern County markets like McFarland.
McFarland's low purchase prices create a real opportunity here. A cheaper property means a lower mortgage payment — that math makes hitting 1.25 DSCR much easier.
Watch out for vacancy risk in small ag towns. DSCR lenders will often use a percentage of market rent, not your optimistic projection. Get realistic rent comps before you apply.
Hard money loans close faster but carry higher rates and short terms. DSCR loans give you a 30-year fixed option — real buy-and-hold financing.
Bank statement loans look at your personal deposits. DSCR ignores your income entirely. If the property cash flows, that's the story.
Kern County has no shortage of rental housing demand. McFarland sits between Delano and Shafter — workers need housing close to job sites.
As of April 2026, Kern County remains one of the more affordable inland markets in California. That affordability is an asset when structuring a DSCR deal.
Most lenders want a 1.0 minimum, but 1.25 is the sweet spot. Lower prices in McFarland make hitting that ratio more realistic.
No. DSCR loans qualify based on the rental property's income. Your tax returns and pay stubs stay out of it.
Yes. Most DSCR programs allow 20-25% down. Some lenders require more depending on credit score and property type.
Yes, typically. Non-QM pricing carries a premium. Rates vary by borrower profile and market conditions.
Lenders use a market rent appraisal, not your projection. They want a third-party rent estimate from the appraisal.
Yes. We work with wholesale lenders who actively lend in markets like McFarland. Rural properties need the right lender match.