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Investor Loans in Novato
Novato offers investor opportunities without paying for downtown San Rafael location premium. Single-family rentals here attract North Bay commuters and families priced out of San Francisco.
Most investment properties in Marin County require non-QM financing since rental income rarely fits traditional debt-to-income formulas. Conventional investor loans cap at 10 properties total.
You need 15-25% down depending on property count and loan program. DSCR loans approve based on rental income covering the mortgage, not your W-2 earnings.
Credit requirements start at 620 for DSCR programs, 660 for conventional investor loans. Expect higher rates than owner-occupied financing—typically 1-2% above primary residence rates.
Most retail banks won't touch investment properties in Marin County due to high loan amounts and non-traditional income documentation. You need wholesale lenders who specialize in investor programs.
We access 200+ wholesale lenders with different overlays on property condition, cash-out restrictions, and portfolio size limits. One lender may decline while another approves the same deal.
Fix-and-flip deals in Novato work better with hard money loans—12-month terms at higher rates but faster closes. Long-term rentals fit DSCR loans with 30-year amortization.
Novato's rental market favors single-family homes over condos. HOA restrictions in many Marin complexes limit rental activity, and some lenders won't finance condos with rental caps.
DSCR loans don't require tax returns or employment verification—approval depends entirely on whether rent covers the mortgage at 1.0-1.25x ratio. Hard money loans fund based on after-repair value for renovation projects.
Bridge loans let you buy before selling another property. Interest-only options reduce monthly payments during lease-up periods or while you stabilize occupancy.
Novato sits in unincorporated Marin in some areas, which affects property taxes and development restrictions. Verify whether your target property falls under city or county jurisdiction.
Rental demand stays strong from families and professionals working in San Rafael or commuting to San Francisco via Highway 101. Proximity to Hamilton Field and Vintage Oaks attracts tenants seeking newer construction.
DSCR loans use market rent appraisals to qualify you, not existing leases. The appraiser determines rental income based on comparable properties in Novato.
Expect 20-25% down for your second investment property. Some DSCR lenders require 25% on all non-owner occupied loans regardless of property count.
Yes, most lenders require 6-12 months of reserves per financed property. Reserves must cover principal, interest, taxes, insurance, and HOA if applicable.
Hard money lenders focus on property value and your experience, not credit scores. Expect 10-14% rates with 2-4 points upfront for 12-month terms.
DSCR and hard money programs go up to $3-5 million depending on the lender. Loan-to-value ratios drop as loan amounts increase above $2 million.
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.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
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.
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.