Question 1

Can I use Airbnb income to qualify for a DSCR loan in Napa?

Accepted Answer

Some lenders accept STR income data from platforms like AirDNA. Not all do — lender selection matters significantly here.

Question 2

What DSCR ratio do I need to get approved?

Accepted Answer

Most lenders want 1.1 or higher. Some approve at 1.0, but you'll pay a higher rate for it.

Question 3

Do I need a Napa STR permit before applying for a DSCR loan?

Accepted Answer

Lenders don't require it at application. But you need it to operate legally — and that affects projected income.

Question 4

How much do I need to put down on a DSCR loan in Napa?

Accepted Answer

Plan for 20-25% down. Some lenders allow 15% with strong DSCR and credit, but that's less common.

Question 5

Can I use a DSCR loan to buy a Napa vacation rental as an LLC?

Accepted Answer

Yes. Many DSCR lenders allow LLC vesting. It's one of the reasons investors prefer this loan type.

Question 6

How is DSCR different from a conventional investment loan?

Accepted Answer

Conventional loans check your personal income and debt ratios. DSCR only looks at property cash flow — personal income is irrelevant.

DSCR Loans for Napa Rental Properties