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DSCR Loans in San Juan Bautista
San Juan Bautista sits in a rental market where property cash flow matters more than what's on your 1040. DSCR loans let you buy or refinance investment properties based purely on rental income.
This loan type works for self-employed investors and serial property buyers who show low taxable income. If the property generates enough rent to cover the mortgage, you can qualify without traditional employment verification.
San Benito County sees steady rental demand from commuters and agricultural workers. Properties that pencil out here often hit the 1.0 to 1.25 DSCR range lenders want to see.
Lenders calculate DSCR by dividing monthly rent by monthly mortgage payment. A 1.0 ratio means rent equals the payment. Most lenders want 1.1 or higher, though some approve at 1.0 with reserves.
Expect 20-25% down minimum. Credit scores typically need to hit 640 for best terms, though some programs go to 620. You'll need 6-12 months reserves depending on DSCR ratio and experience.
The property must be investment-only—no primary residences. Single-family homes, 2-4 units, condos, and townhomes all qualify if they appraise and generate verifiable rent.
DSCR loans live in the non-QM space, meaning rates run 1-2% higher than conventional loans. You're paying for the flexibility to skip income documentation.
Our wholesale network includes 15-20 lenders who compete on DSCR pricing. Rate spreads between lenders hit 0.5-0.75% on the same deal, which is why shopping multiple sources matters.
Some lenders use actual leases, others accept market rent from the appraisal. The appraisal route works better for vacant properties or lease renewals coming up.
San Juan Bautista properties often work better for DSCR than you'd expect. Lower purchase prices mean rent-to-payment ratios can hit 1.25+ where more expensive markets struggle to reach 1.0.
I see investors use DSCR here for 1031 exchanges and portfolio building. You can close multiple properties in a year without income limits killing your buying power.
The biggest mistake is using list price to calculate DSCR before you have an offer accepted. Rent might cover a $500K purchase but not $550K. Run numbers at your offer price, not asking price.
Bank statement loans look at deposits to prove income. DSCR ignores your income completely—only the property's rent matters. If you have strong personal income but the property is marginal, bank statement wins. If the property cash flows but your income is complex, DSCR wins.
Hard money makes sense for fix-and-flip with 6-12 month holds. DSCR works for buy-and-hold with 30-year amortization. Rate difference runs 3-5% between the two products.
Conventional investor loans beat DSCR on rate but cap you at 10 financed properties. DSCR has no portfolio limits, though each lender sets their own maximum loan count.
San Juan Bautista's historic district and small-town appeal attract long-term renters. Properties within walking distance of downtown or near Mission San Juan Bautista tend to hold tenants better.
Appraisers sometimes struggle with comps here since inventory stays tight. Factor in 3-4 weeks for appraisal if the property is unique or rural. Delayed appraisals push closing dates.
County rent control doesn't apply to most single-family homes, but verify your property isn't affected. Rent control kills DSCR qualification by capping future income growth.
Yes. Lenders accept market rent from the appraisal's rent schedule. You don't need a tenant in place at closing.
Some lenders approve below 1.0 with larger down payments and higher reserves. Expect worse rates and stricter terms.
No. You can close in personal name or LLC. Most lenders charge the same rate either way.
Underwriting runs 5-7 days once appraisal completes. Appraisal takes 2-4 weeks depending on property type and appraiser availability.
Yes. Most lenders allow up to 75% LTV on cash-out refinances using current rent to qualify.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.