Question 1

Can I use projected Airbnb income to qualify?

Accepted Answer

No. DSCR lenders need actual lease agreements or 12-month rental comps. They won't approve based on vacation rental projections without permit and booking history.

Question 2

What's the minimum down payment for a Scotts Valley rental property?

Accepted Answer

15% for single-family, 20-25% for multi-unit. Investment properties always require more down than owner-occupied. Hard money may go higher at 25-30%.

Question 3

How long does a DSCR loan take to close?

Accepted Answer

30 days from application to funding. No employment verification speeds things up. Appraisal delays happen when investor comps are scarce.

Question 4

Do I need reserves for an investor loan?

Accepted Answer

Yes, 6-12 months of mortgage payments in liquid assets. Lenders want proof you can cover vacancies. More properties require higher reserves.

Question 5

Can I finance a fix-and-flip in Scotts Valley?

Accepted Answer

Hard money works best for flips under 12 months. Rates run 9-12% but you close in 7-10 days. DSCR loans are for rental holds, not quick resales.

Investor Loans in Scotts Valley: Finance Rental Properties and Fix-and-Flip Projects