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Novato sits at the northern edge of Marin County. Rents here run high, and that works in your favor with a DSCR loan.
DSCR loans qualify you based on what the property earns. Your W-2, Schedule E, or business losses don't enter the picture.
0.75 – 1.25+
Min DSCR Ratio
620 – 680
Min Credit Score
20 – 25%
Down Payment
21 – 30 days
Typical Close Time
6 – 12 months
Reserves Required
DSCR Loans in Novato
Lenders calculate your DSCR by dividing the property's monthly rent by its total monthly debt payment. A ratio of 1.0 means rent covers the mortgage exactly.
Most lenders want a DSCR of 1.2 or higher. Some go down to 0.75 for strong borrowers with solid reserves.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Novato.
Novato sits at the northern edge of Marin County. Rents here run high, and that works in your favor with a DSCR loan.
DSCR loans qualify you based on what the property earns. Your W-2, Schedule E, or business losses don't enter the picture.
Lenders calculate your DSCR by dividing the property's monthly rent by its total monthly debt payment. A ratio of 1.0 means rent covers the mortgage exactly.
DSCR is a non-QM product. Most banks won't touch it. You need a broker with access to wholesale non-QM lenders — not a retail loan officer at a credit union.
Pricing varies sharply across lenders on DSCR. One lender might price a 1.1 DSCR deal two points higher than another. Shopping matters here.
Marin County properties command premium rents. That gives Novato investors a real edge — higher rent means a better DSCR ratio on the same loan amount.
Short-term rental income is trickier. Some lenders accept Airbnb projections. Others only use long-term lease rates. Know which lender will accept your income type before you open escrow.
Bank statement loans look at your personal deposits. DSCR loans don't care about your deposits at all. If the property cash flows, that's the qualifier.
Hard money moves faster but costs more. DSCR rates run lower and terms run longer — better for a buy-and-hold strategy in a stable market like Novato.
Novato's rental market benefits from proximity to San Francisco and limited housing supply across Marin. Tenant demand stays steady, which lenders notice.
Property values in Marin push loan sizes up. Make sure your DSCR lender has high loan limits — some non-QM lenders cap out below what Novato deals require.
Most lenders target 1.2 or above. Some accept ratios as low as 0.75 with strong credit and reserves.
Yes. Most non-QM lenders allow LLC vesting. This is one of the main reasons investors choose DSCR over conventional.
Some lenders accept STR income using platforms like Airbnb. Others require a standard long-term lease. Confirm upfront.
Expect 20-25% down for most deals. Higher down payments can offset a weaker DSCR ratio.
Most DSCR loans close in 21-30 days. Simpler deals with clean rent schedules can move faster.
Yes. DSCR is non-QM, so rates run higher than conventional. Rates vary by borrower profile and market conditions.