Question 1

What does DSCR actually mean?

Accepted Answer

It's the ratio of monthly rent to monthly mortgage payment. A 1.0 DSCR means the rent exactly covers the debt.

Question 2

Can I use a DSCR loan for a vacation rental in Ukiah?

Accepted Answer

Yes, but lenders may use market rent — not projected Airbnb income. Confirm how your lender calculates income before closing.

Question 3

Do I need to show personal income for a DSCR loan?

Accepted Answer

No. The property's income qualifies the loan. Your W-2 or tax returns won't factor in.

Question 4

What credit score do I need for a DSCR loan?

Accepted Answer

Most lenders start at 620. Higher scores get better rates — rates vary by borrower profile and market conditions.

Question 5

How much do I need to put down in Mendocino County?

Accepted Answer

Plan for 20-25% minimum. Some lenders require more for rural or vacation-use properties.

Question 6

Can I do a cash-out refinance using DSCR?

Accepted Answer

Yes. DSCR works for purchases and cash-out refis. The property still needs to hit the required coverage ratio.

DSCR Loans in Ukiah, CA — Qualify on Rental Income