Question 1

What DSCR ratio do I need to qualify in Novato?

Accepted Answer

Most lenders target 1.2 or above. Some accept ratios as low as 0.75 with strong credit and reserves.

Question 2

Can I close a DSCR loan in an LLC?

Accepted Answer

Yes. Most non-QM lenders allow LLC vesting. This is one of the main reasons investors choose DSCR over conventional.

Question 3

Do Novato short-term rentals qualify for DSCR?

Accepted Answer

Some lenders accept STR income using platforms like Airbnb. Others require a standard long-term lease. Confirm upfront.

Question 4

How much do I need to put down on a DSCR loan?

Accepted Answer

Expect 20-25% down for most deals. Higher down payments can offset a weaker DSCR ratio.

Question 5

How fast can a DSCR loan close in Marin County?

Accepted Answer

Most DSCR loans close in 21-30 days. Simpler deals with clean rent schedules can move faster.

Question 6

Are DSCR rates higher than conventional rates?

Accepted Answer

Yes. DSCR is non-QM, so rates run higher than conventional. Rates vary by borrower profile and market conditions.

DSCR Loans in Novato — Qualify on Rent, Not Your Tax Returns