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DSCR Loans in Hanford
Hanford rental properties qualify for financing based on the rent they generate, not your tax returns. DSCR loans work when the property income covers the mortgage payment.
Central Valley investors use these loans to build portfolios without employment verification. The property either cash flows or it doesn't—your day job stays out of the equation.
You need a 1.0 DSCR minimum—meaning monthly rent equals or exceeds the monthly mortgage payment. Most lenders require 20-25% down and credit scores above 620.
The property needs a current lease or appraisal with market rent analysis. Investment properties only—you can't live in a DSCR-financed home.
DSCR lenders calculate differently. Some use actual rent rolls, others use appraised market rents. The appraisal method works better for vacant properties or new purchases.
Rates run 1-2% above conventional mortgages. You pay for the flexibility of no income verification. Closing costs include standard fees plus prepayment penalties on some programs.
Hanford single-family rentals typically hit 1.0-1.2 DSCR ratios at current prices. Multi-units perform better on the income calculation. Properties under $300k are easiest to make work.
I've closed DSCR deals for borrowers with six-figure W-2 income who didn't want to document it. Also works for self-employed investors tired of explaining business write-offs to conventional underwriters.
Bank statement loans require 12-24 months of deposits to prove income. DSCR loans skip that entirely—property income is the only income that matters.
Hard money works for quick closings but costs 9-12% rates. DSCR rates sit around 7-8% with 30-year terms. Bridge loans make sense for 6-month flips, DSCR for long-term holds.
Kings County property taxes run about 1.1% of assessed value. Factor that into your DSCR calculation or the deal won't cash flow. Insurance costs have climbed—get quotes before assuming a ratio works.
Hanford rental demand stays steady with ag industry employment. Vacancy rates matter less here than in resort towns. Conservative rent estimates still qualify most deals at 1.0 DSCR.
Most lenders require 1.0 minimum, meaning rent covers the mortgage payment. Higher ratios get better rates.
Appraisers provide market rent estimates for vacant properties. Actual leases work too if rent matches market rates.
Yes, 2-4 unit properties qualify and usually hit higher DSCR ratios than single-family homes. Better cash flow helps approval.
Expect 20-25% down. Some lenders go to 15% for strong ratios over 1.25 DSCR.
Absolutely. Cash-out refinances work if the new loan amount maintains required DSCR ratios after the cash-out.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.