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Monterey draws serious short-term rental investors. Coastal tourism drives strong nightly rates year-round.
DSCR loans — which qualify you on a property's rental income, not your tax returns — are built for this market.
1.0 (some at 0.75)
Min DSCR Ratio
620–660 typical
Min Credit Score
None (personal)
Income Docs Required
20–25% typical
Down Payment
DSCR, LTV & credit
Rates Vary By
DSCR Loans in Monterey
Lenders calculate your DSCR by dividing monthly rental income by monthly debt payment. A ratio of 1.0 means rent covers the payment exactly.
Most lenders want a DSCR of 1.0 or higher. Credit score minimums typically start around 620 to 660, depending on the lender.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Monterey.
Monterey draws serious short-term rental investors. Coastal tourism drives strong nightly rates year-round.
DSCR loans — which qualify you on a property's rental income, not your tax returns — are built for this market.
Lenders calculate your DSCR by dividing monthly rental income by monthly debt payment. A ratio of 1.0 means rent covers the payment exactly.
DSCR is a non-QM product — meaning most big banks won't touch it. You need wholesale lenders who specialize in investor loans.
At SRK CAPITAL, we work with 200+ wholesale lenders. That gives you real options on rate, LTV, and how lenders underwrite short-term rental income.
Monterey vacation rentals look great on paper. But not every DSCR lender accepts Airbnb income — some require long-term lease agreements.
Find a lender who underwrites using market rent data, not just your actual lease. That matters in a high-demand coastal market.
Bank statement loans look at your personal deposits. Hard money loans care about equity, not income. DSCR loans care about the property's numbers.
If your rental cash flows well, DSCR is usually your cleanest path. Fewer documents, faster close, and no income ratio hurdle from your personal returns.
Monterey County has strict short-term rental regulations in some zones. Confirm your permit status before you close — it affects how lenders view the income.
Properties near Cannery Row and the waterfront command premium nightly rates. That rental strength is exactly what makes DSCR math work in this city.
Most lenders require 1.0 or above. Some go down to 0.75 with a larger down payment and stronger credit.
Some lenders accept short-term rental income with platform statements. Others require long-term leases — lender selection matters here.
Expect 20-25% down for most DSCR loans. Lower DSCRs or higher-risk properties may require more.
Yes, but only with lenders who accept STR income. We know which wholesale lenders underwrite Monterey vacation rentals without issue.
Conventional loans check your personal income and debt ratios. DSCR only looks at whether the property pays for itself.
Yes. Cash-out refinances are available. As long as the property's income supports the new payment, you can qualify.