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Los Banos sits in the San Joaquin Valley, where rents are lower than coastal California but so are purchase prices. That spread creates real cash flow potential for rental investors.
DSCR loans ignore your W-2 or tax returns. The property's rent-to-payment ratio is what gets you approved — and in Los Banos, that ratio can work in your favor.
1.0 (some allow 0.75)
Minimum DSCR Ratio
620–660
Min Credit Score
20–25%
Down Payment
21–30 days
Typical Close Time
None
Income Docs Required
DSCR Loans in Los Banos
Most lenders want a DSCR of 1.0 or higher. That means the monthly rent covers the full mortgage payment. Some lenders allow 0.75 with a higher down payment.
Expect a minimum 620-660 credit score. Down payments typically start at 20-25%. This is not a low-down-payment loan program.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Los Banos.
Los Banos sits in the San Joaquin Valley, where rents are lower than coastal California but so are purchase prices. That spread creates real cash flow potential for rental investors.
DSCR loans ignore your W-2 or tax returns. The property's rent-to-payment ratio is what gets you approved — and in Los Banos, that ratio can work in your favor.
Most lenders want a DSCR of 1.0 or higher. That means the monthly rent covers the full mortgage payment. Some lenders allow 0.75 with a higher down payment.
DSCR loans are non-QM products. Banks rarely offer them. You need wholesale lenders who specialize in investor financing — and not every broker has access to that shelf.
SRK CAPITAL works with 200+ wholesale lenders. We can shop DSCR programs across multiple investors to find the best rate and terms for your Los Banos rental deal.
Los Banos investors often run into one problem: appraisals come in conservative. If the appraiser uses weak rent comps, your DSCR drops — and the deal can fall apart.
Pull your own rent comps before you apply. Know what similar units are leasing for right now. A strong rental market analysis protects your DSCR calculation from the start.
Hard money loans close faster but cost more — often 10-12% rates with short terms. DSCR loans carry 30-year amortization and lower rates, making them better for buy-and-hold investors.
Bank statement loans verify your business income. DSCR loans skip your income entirely. If you own rentals and want to scale without showing more income, DSCR is the cleaner path.
Los Banos has a strong blue-collar rental demand tied to agriculture and distribution employment. Tenant demand tends to be steady, which supports consistent rent rolls.
Merced County is not a high-cost area, so loan amounts typically stay well below jumbo thresholds. That means more lenders will compete for your DSCR deal here than in coastal markets.
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by its mortgage payment — a ratio above 1.0 means the rent covers the debt.
Yes. Most DSCR lenders allow LLC vesting. Some require a personal guarantee, so confirm structure with your lender before closing.
Most do not verify income for qualification. Some pull a soft credit check and verify assets, but your W-2 or tax returns are not used.
DSCR rates run higher than conventional loans — typically 1-2 points above conventional investment pricing. Rates vary by borrower profile and market conditions.
Single-family rentals, 2-4 unit properties, and some condos qualify. Rural or agricultural parcels may require specialized programs outside standard DSCR.
Most DSCR loans close in 21-30 days. Some lenders offer expedited timelines for experienced investors with clean files.