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Tracy sits at the edge of the Bay Area commuter belt. Rents hold strong because workers priced out of Alameda County keep moving here.
That rental demand makes Tracy a real target for DSCR investors. The math on cash flow tends to work better here than in pricier markets.
620+
Min Credit Score
1.0x
Min DSCR Ratio
20-25%
Down Payment
None
Income Docs Needed
Non-QM / Investor
Loan Type
DSCR Loans in Tracy
DSCR loans qualify you on the property's rent, not your tax returns. If the rent covers the mortgage, you can get approved.
Most lenders want a DSCR of 1.0 or higher. That means rent equals or exceeds the full monthly payment. Some lenders go below 1.0 with a larger down payment.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Tracy.
Tracy sits at the edge of the Bay Area commuter belt. Rents hold strong because workers priced out of Alameda County keep moving here.
That rental demand makes Tracy a real target for DSCR investors. The math on cash flow tends to work better here than in pricier markets.
DSCR loans qualify you on the property's rent, not your tax returns. If the rent covers the mortgage, you can get approved.
DSCR is a non-QM loan. Your local bank almost certainly won't offer it. You need a wholesale lender that specializes in investor products.
We work with 200+ wholesale lenders at SRK CAPITAL. Several run strong DSCR programs with competitive terms for San Joaquin County properties.
The mistake I see most often: investors buy in Tracy but use a lender pricing it like a Bay Area deal. Appraisals and rent comps here are different.
Get the rent schedule done before you apply. A weak comparable rental analysis kills DSCR deals faster than anything else.
Hard money loans close faster but cost more. DSCR loans take longer but give you a 30-year fixed rate and real long-term financing.
Bank statement loans work if you have strong self-employment income. DSCR ignores your income entirely — that's the key difference.
Tracy has a mix of single-family homes and small multi-units. Both qualify for DSCR financing, but lenders look at them differently.
As of April 2026, San Joaquin County remains a strong buy-and-hold market. Tracy's location near major logistics hubs keeps steady employment and rental demand.
Most lenders require 1.0 or above. That means your monthly rent must cover the full mortgage payment.
Yes. Lenders use a rent schedule from the appraiser. The property doesn't need to be leased at application.
Some lenders allow it, but they require documented Airbnb or VRBO income history. Expect more scrutiny and tighter terms.
Most programs start at 620. Better pricing kicks in around 700 and above.
Many lenders have no cap on DSCR loans. This is one reason investors prefer it over conventional financing past loan four.
Yes. Two-to-four unit properties qualify. The combined rent from all units counts toward the DSCR calculation.