Question 1

What DSCR do I need to qualify in King City?

Accepted Answer

Most lenders require 1.0 minimum, meaning rent covers the mortgage payment. Some accept 0.75 with higher reserves and credit scores.

Question 2

Can I use a DSCR loan for a vacation rental?

Accepted Answer

Short-term rentals qualify if the appraisal includes market rent analysis for nightly rental income. Not all DSCR lenders allow this.

Question 3

Do I need to show tax returns for DSCR loans?

Accepted Answer

No. DSCR loans qualify on property income only. Lenders skip employment and income verification entirely.

Question 4

How long does DSCR underwriting take?

Accepted Answer

Expect 3-4 weeks from application to closing. Appraisal timelines drive the schedule in Monterey County.

Question 5

What rates should I expect on a King City DSCR loan?

Accepted Answer

As of February 2026, rates run 7-8% for strong profiles. Rates vary by borrower profile and market conditions.

DSCR Loans in King City: Qualify on Rental Income, Not W-2s