Question 1

What DSCR ratio do lenders want in Gilroy?

Accepted Answer

Most lenders target 1.0 or above. Some go as low as 0.75 with 25-30% down and a stronger credit profile.

Question 2

Can I use a DSCR loan to buy in an LLC?

Accepted Answer

Yes. Most non-QM DSCR lenders allow LLC vesting. This is one of the top reasons investors prefer DSCR over conventional.

Question 3

Do DSCR lenders count short-term rental income in Gilroy?

Accepted Answer

A few do, but most use long-term market rent. If you're buying an Airbnb, confirm the lender's policy before applying.

Question 4

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

Accepted Answer

Expect 20-25% minimum. Some lenders require more if the DSCR is below 1.0 or the credit score is near the floor.

Question 5

Is a DSCR loan harder to get than a conventional investor loan?

Accepted Answer

Not harder — different. DSCR ignores your personal income. The property has to carry itself. That's the tradeoff.

Question 6

What property types qualify for DSCR loans in Gilroy?

Accepted Answer

Single-family, 2-4 units, and some condos qualify. Commercial properties and rural land typically don't fit DSCR programs.

DSCR Loans in Gilroy, CA — Qualify on Rental Income, Not Your W-2