Question 1

What DSCR ratio do I need to qualify in Scotts Valley?

Accepted Answer

Most lenders want 1.1 or above. Some programs allow 1.0 with stronger credit or a larger down payment.

Question 2

Can I use short-term rental income for a DSCR loan here?

Accepted Answer

Some lenders accept AirDNA projections for STRs. Others require 12 months of actual rental history. Lender rules vary significantly.

Question 3

Do DSCR loans require a California LLC?

Accepted Answer

No. You can close in your personal name. Some lenders also allow LLCs, which many investors prefer for liability reasons.

Question 4

How fast can a DSCR loan close in Scotts Valley?

Accepted Answer

Typical close is 21-30 days. No income verification speeds things up versus conventional investor loans.

Question 5

What property types qualify for DSCR in this area?

Accepted Answer

Single-family, 2-4 unit, and some small multifamily properties qualify. Lenders evaluate each based on the property's rental income.

DSCR Loans in Scotts Valley — Let the Property Qualify Itself