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Sand City sits inside Monterey County, steps from the coast. Short-term and mid-term rentals here attract investors year-round.
DSCR loans skip the W-2 review entirely. The property's rental income is what gets you approved.
660–680 typical
Min Credit Score
1.20 for best terms
Min DSCR Ratio
20–25%
Down Payment
Allowed
LLC Vesting
3–4 weeks
Avg Close Time
DSCR Loans in Sand City
Lenders calculate your DSCR by dividing monthly rent by monthly debt payments. A ratio of 1.0 means rent covers the mortgage exactly.
Most lenders want a DSCR of 1.20 or higher. Below 1.0 is possible with some lenders, but expect a higher rate and more equity required.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Sand City.
Sand City sits inside Monterey County, steps from the coast. Short-term and mid-term rentals here attract investors year-round.
DSCR loans skip the W-2 review entirely. The property's rental income is what gets you approved.
Lenders calculate your DSCR by dividing monthly rent by monthly debt payments. A ratio of 1.0 means rent covers the mortgage exactly.
DSCR is a non-QM loan. Most retail banks don't offer it. You need a broker with access to wholesale non-QM lenders.
We work with 200+ wholesale lenders, including dedicated non-QM shops. That access matters when pricing varies this much across lenders.
The biggest mistake investors make: using projected rents instead of verified lease agreements. Lenders want actual rent or a market rent appraisal.
Short-term rental income like Airbnb gets treated differently. Some lenders use 75% of gross STR income. Others won't touch it. Know who you're dealing with.
Hard money moves faster but costs more. DSCR loans close in 3-4 weeks and carry 30-year amortization. For a hold strategy, DSCR wins.
Bank statement loans qualify on your personal cash flow. DSCR qualifies on the property's. If the deal pencils, DSCR keeps your personal finances out of it.
Sand City is a small, dense market inside Monterey County. Inventory is tight and rental demand from military, students, and tourism is consistent.
Monterey County's coastal zoning can limit what you do with a property. Verify short-term rental permits before you close — that affects your DSCR calculation.
Most lenders want 1.20 or above. Some allow lower with more equity down, but you'll pay for it in rate.
Some lenders accept short-term rental income at 75% of gross. Others require long-term leases. STR zoning in Monterey County must be confirmed first.
No. That's the point. Lenders qualify the property, not you. No personal income docs or tax returns required.
Yes. Most non-QM lenders allow LLC vesting. It's one reason investors prefer DSCR over conventional rental loans.
Typically 3-4 weeks with a clean appraisal. Non-QM underwriting can move fast when docs are ready upfront.
Plan for 20-25% down. Some lenders go to 15%, but the rate premium usually makes it not worth it.