Loading
Loading
Napa is one of the strongest short-term rental markets in California. Wine tourism drives year-round demand that supports premium nightly rates.
DSCR loans qualify you on the property's income — not your W-2. That's a major advantage for investors who own multiple properties or run their own business.
620+
Min Credit Score
1.0–1.25
Min DSCR Ratio
20–25%
Down Payment
Not required
Income Docs
Up to 30-year fixed
Loan Term
DSCR Loans in Napa
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by the monthly mortgage payment. A ratio of 1.0 means the rent covers the payment exactly.
Most DSCR lenders want a ratio of 1.1 or higher. Credit score minimums typically start at 620, and down payments usually run 20-25%.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Napa.
Napa is one of the strongest short-term rental markets in California. Wine tourism drives year-round demand that supports premium nightly rates.
DSCR loans qualify you on the property's income — not your W-2. That's a major advantage for investors who own multiple properties or run their own business.
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by the monthly mortgage payment. A ratio of 1.0 means the rent covers the payment exactly.
DSCR is a non-QM loan. That means retail banks rarely offer it. You need a broker with access to wholesale non-QM lenders — not just your local credit union.
We work with 200+ wholesale lenders at SRK CAPITAL. Several specialize in short-term rental properties, which matters in a market like Napa.
Napa vacation rentals can show strong DSCR on paper. The key is using market rent data that reflects STR income, not long-term lease comps.
Some lenders use AirDNA or similar STR data to underwrite Napa properties. Others only accept long-term lease comps — that kills the deal. Know which lender uses which method before you apply.
Bank Statement loans also skip tax returns, but they qualify you on personal income. DSCR ignores your income entirely — only the property cash flow matters.
Hard Money loans close faster but carry higher rates and short terms. DSCR loans offer 30-year fixed options, which Hard Money never does. For a buy-and-hold Napa rental, DSCR wins.
Napa County enforces short-term rental permit rules. Before you close on a property, confirm the permit is transferable or obtainable — no permit means no STR income.
Property prices in Napa skew high relative to long-term rents. Run the DSCR math using conservative STR projections. A deal that pencils at peak occupancy may not hold at 65%.
Some lenders accept STR income data from platforms like AirDNA. Not all do — lender selection matters significantly here.
Most lenders want 1.1 or higher. Some approve at 1.0, but you'll pay a higher rate for it.
Lenders don't require it at application. But you need it to operate legally — and that affects projected income.
Plan for 20-25% down. Some lenders allow 15% with strong DSCR and credit, but that's less common.
Yes. Many DSCR lenders allow LLC vesting. It's one of the reasons investors prefer this loan type.
Conventional loans check your personal income and debt ratios. DSCR only looks at property cash flow — personal income is irrelevant.