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Lathrop sits in San Joaquin County's growth corridor. Warehousing, logistics, and new residential development have made it a magnet for rental demand.
Investors buying here don't need W-2s to qualify. DSCR loans approve based on what the property earns — not what you take home.
1.0 – 1.1+
Min DSCR Ratio
620+
Min Credit Score
20-25%
Down Payment
Non-QM / Investor
Loan Type
Fixed, ARM, I/O
Rate Type
DSCR Loans in Lathrop
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by its monthly mortgage payment. A ratio of 1.0 means rent covers the mortgage exactly.
Most lenders want a DSCR of 1.1 or higher. Credit score minimums typically start at 620. Expect to put 20-25% down on most DSCR purchases.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Lathrop.
Lathrop sits in San Joaquin County's growth corridor. Warehousing, logistics, and new residential development have made it a magnet for rental demand.
Investors buying here don't need W-2s to qualify. DSCR loans approve based on what the property earns — not what you take home.
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by its monthly mortgage payment. A ratio of 1.0 means rent covers the mortgage exactly.
DSCR is a non-QM product. That means big retail banks largely don't offer it. You need access to wholesale lenders who specialize in investor financing.
Rates vary significantly across lenders on this product. Shopping 5-10 lenders isn't overkill — it's how you find the right rate and terms. Rates vary by borrower profile and market conditions.
Lathrop has a strong single-family rental market fed by workers priced out of the Bay Area. That rental demand profile works in your favor on DSCR underwriting.
Watch your rent-to-value ratio on newer builds. Appraisers use market rent for the DSCR calculation — not what you hope to charge. Get a rent schedule before you make an offer.
A conventional investment loan requires full income documentation and counts your existing debt load. If you're self-employed or hold multiple properties, that math often doesn't work.
DSCR ignores your personal DTI — debt-to-income ratio. The property qualifies itself. That's the entire advantage over conventional investor financing.
San Joaquin County has seen persistent renter demand from essential and logistics workers. Lathrop's Amazon and industrial corridors keep that demand stable.
Property values here are lower than Bay Area metros. That helps DSCR ratios. Lower purchase prices relative to rent make it easier to hit that 1.1 threshold.
Most lenders want 1.1 or above. Some go to 1.0 with a higher down payment or stronger credit score.
Some lenders allow it using AirDNA or similar data. Not all do — you need a lender that specifically allows STR income.
No. DSCR lenders qualify the property, not you. No pay stubs, W-2s, or tax returns required.
Plan for 20-25% down. Some lenders go lower with a higher rate. Cash reserves also matter to underwriters.
Yes. DSCR loans work on 1-4 unit properties and some small multifamily. The full rental income from all units counts.
Hard money is short-term and expensive — built for flips. DSCR is a long-term hold loan with 30-year amortization options.