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Madera is a Central Valley market where rents hold steady and purchase prices stay below coastal California norms. That gap creates real cash flow opportunity for rental investors.
DSCR loans — which qualify you on what the property earns, not what you earn — are built for markets like this. Lower entry prices mean the rent-to-price ratio often works in your favor.
620–640
Min Credit Score
1.0x
Min DSCR Ratio
20–25%
Min Down Payment
None
Income Docs Required
30-yr fixed or ARM
Loan Term Options
DSCR Loans in Madera
Most lenders want a DSCR of 1.0 or higher. That means monthly rent must at least equal the monthly mortgage payment. A ratio above 1.25 gets you better rates.
Credit score minimums typically sit at 620 to 640. Down payment requirements usually start at 20 to 25 percent. This is not a low-down-payment loan program.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Madera.
Madera is a Central Valley market where rents hold steady and purchase prices stay below coastal California norms. That gap creates real cash flow opportunity for rental investors.
DSCR loans — which qualify you on what the property earns, not what you earn — are built for markets like this. Lower entry prices mean the rent-to-price ratio often works in your favor.
Most lenders want a DSCR of 1.0 or higher. That means monthly rent must at least equal the monthly mortgage payment. A ratio above 1.25 gets you better rates.
Retail banks rarely offer DSCR loans. This product lives almost entirely in the wholesale and non-QM lending space. That is exactly where we operate.
We work with 200+ wholesale lenders, several of whom specialize in DSCR for Central Valley properties. Madera deals are not exotic to them — they close them regularly.
The mistake I see most often: investors underestimate the property. Get a rent schedule from an appraiser before you apply. Lenders use appraised market rent, not the lease you negotiated.
Short-term rentals are tricky. Some DSCR lenders will only accept long-term lease income. If you are buying an Airbnb-style property, we need to match you to a lender who accepts that income type.
Conventional investment loans cap out at ten financed properties and require full income docs. DSCR loans have no such cap and skip the personal income review entirely.
Hard money loans close faster but carry higher rates and short terms. DSCR loans offer 30-year fixed options — real long-term financing for buy-and-hold investors.
Madera County's rental market is driven by agricultural employment, UC Merced spillover, and steady working-class demand. Those factors keep vacancy low and rents predictable.
Lenders appraise to Madera comps, not Fresno or Merced. Make sure your broker is using lenders familiar with Central San Joaquin Valley valuations — not coastal underwriting assumptions.
Most lenders require at least 1.0 — rent equals or exceeds the payment. A ratio of 1.25 or higher typically earns better pricing.
Yes. Lenders use appraised market rent from the appraisal report. The property does not need an active lease to qualify.
Yes, most DSCR programs cover 1-4 unit properties. Some lenders go up to 8 units. We match your deal to the right program.
Divide the monthly gross rent by the monthly PITIA — that is principal, interest, taxes, insurance, and HOA if applicable. Above 1.0 means positive cash flow coverage.
Yes. Most DSCR programs offer 30-year fixed and ARM options. Fixed rates provide stability for long-term Madera rental holds.
Often yes — many DSCR loans carry 3 to 5 year prepayment penalties. Review the terms before signing. We flag this on every deal.