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Scotts Valley sits between Santa Cruz and Silicon Valley. That location drives strong rental demand from tech workers priced out of both markets.
Investors here don't need to show personal income. DSCR loans qualify the deal based on what the property earns.
680 typical
Min Credit Score
1.1x preferred
Min DSCR Ratio
20%
Min Down Payment
None
Income Docs Needed
21-30 days
Typical Close Time
DSCR Loans in Scotts Valley
DSCR stands for Debt Service Coverage Ratio. Lenders divide monthly rent by the mortgage payment. A ratio of 1.0 means rent covers the mortgage exactly.
Most lenders want a DSCR of 1.1 or higher. Credit scores typically need to hit 680. Down payments usually start at 20%.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Scotts Valley.
Scotts Valley sits between Santa Cruz and Silicon Valley. That location drives strong rental demand from tech workers priced out of both markets.
Investors here don't need to show personal income. DSCR loans qualify the deal based on what the property earns.
DSCR stands for Debt Service Coverage Ratio. Lenders divide monthly rent by the mortgage payment. A ratio of 1.0 means rent covers the mortgage exactly.
DSCR is a non-QM product. Most big retail banks don't touch it. You need a broker with access to wholesale non-QM lenders.
We work with 200+ wholesale lenders. That means we can shop pricing and overlay requirements across dozens of DSCR programs at once.
Short-term rental income is tricky on DSCR deals. Some lenders use AirDNA data. Others want actual lease agreements or 12-month rental history.
If your Scotts Valley property is priced for STR income, nail down which lenders accept that income method before you're under contract.
Bank Statement Loans also skip tax returns. But they require 12-24 months of personal bank statements. DSCR skips personal income entirely.
Hard Money moves faster but costs more. Bridge Loans work for value-add plays. DSCR fits stabilized properties with reliable rent rolls.
Scotts Valley's rental market benefits from Highway 17 access. Tenants commute to Los Gatos and Campbell. That supports rents and keeps vacancy low.
Santa Cruz County has specific short-term rental regulations. Confirm local STR permit status before underwriting projected rental income.
Most lenders want 1.1 or above. Some programs allow 1.0 with stronger credit or a larger down payment.
Some lenders accept AirDNA projections for STRs. Others require 12 months of actual rental history. Lender rules vary significantly.
No. You can close in your personal name. Some lenders also allow LLCs, which many investors prefer for liability reasons.
Typical close is 21-30 days. No income verification speeds things up versus conventional investor loans.
Single-family, 2-4 unit, and some small multifamily properties qualify. Lenders evaluate each based on the property's rental income.