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DSCR Loans in Belvedere
Belvedere investors face a unique challenge: luxury rental properties with strong income potential but personal tax returns that show depreciation, write-offs, and paper losses.
DSCR loans ignore your tax returns entirely. Lenders approve based on what the property collects in rent versus what it costs to carry the mortgage.
This works especially well for high-net-worth borrowers who optimize personal income for tax purposes but own properties generating solid rental cash flow.
Rates vary by borrower profile and market conditions, but Marin County's rental demand creates strong DSCR profiles for waterfront and view properties.
You need a DSCR of 1.0 or higher. That means monthly rent must equal or exceed the monthly mortgage payment including taxes and insurance.
Most lenders require 15-25% down. Credit scores start at 620, but better rates come at 680 or above.
The property must be investment only. No owner-occupied purchases. Portfolio landlords with multiple properties get the best terms.
Appraisals must include a rent schedule. Lenders use appraised market rent, not your current lease, to calculate the ratio.
DSCR loans sit in the non-QM space. You won't find them at Chase or Wells Fargo.
We work with 200+ wholesale lenders who price these deals differently based on DSCR strength, property type, and loan size.
A 1.4 DSCR gets better pricing than a 1.0. A single-family rental in Belvedere prices better than a condo conversion.
Lenders cap loan amounts between $2M and $4M depending on the program. Jumbo DSCR loans exist but carry higher rates and tighter underwriting.
I've closed dozens of DSCR loans for Marin County investors. The biggest mistake is underestimating how appraisers calculate market rent.
Your tenant might pay $8,000 a month, but if comparable rentals show $7,200, lenders use the lower number. That kills deals at 1.0 DSCR.
Build in a cushion. Target 1.15 or higher to handle appraisal variance and rate changes during closing.
Properties with ADUs or separate units rent higher per door but appraisers often discount the secondary income. Know this going in.
DSCR loans compete with bank statement loans and hard money. Bank statement programs require 12-24 months of business deposits and work for self-employed buyers who also live in the property.
Hard money and bridge loans close faster but cost 9-12% with points. DSCR loans price closer to conventional at 7-9% with better long-term holds.
Investor loans through conventional lenders require full income documentation and cap you at 10 financed properties. DSCR programs have no portfolio limits.
If the property cash flows and you want to avoid tax return scrutiny, DSCR wins. If you need a 10-day close, hard money is the only option.
Belvedere's average rent-to-price ratio runs lower than most Bay Area markets. High purchase prices relative to rental income make 1.0 DSCR challenging without substantial down payments.
Waterfront properties command premium rents but appraisers struggle to find comparable rental data. Expect conservative rent estimates.
Marin County rental regulations allow rent increases but include tenant protections. Lenders want to see lease terms and rental history if the property is tenant-occupied.
Short-term rental income doesn't qualify. Lenders require 12-month leases or strong long-term rental comps from the appraisal.
Only if the property is vacant. Lenders rely on appraised market rent from comparable properties, not your pro forma projections.
Most lenders want 6-12 months of mortgage payments in reserves. Higher DSCR ratios and larger down payments can reduce this requirement.
Some lenders approve down to 0.75 DSCR with 30-35% down and higher rates. You're compensating for negative cash flow with equity.
Typically 3-4 weeks from application to close. Delays usually come from slow appraisals or rent schedule documentation issues.
Yes, cash-out and rate-term refinances both work. Same DSCR requirements apply based on current market rent and new loan amount.
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.