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Redding draws investors who want California cash flow without Southern California prices. Single-family rentals here pencil out in ways most coastal markets don't.
A DSCR loan — Debt Service Coverage Ratio — qualifies you based on what the property earns, not what you earn. That changes everything for investors with complex income.
1.0 (1.2 preferred)
Min DSCR Ratio
620–680
Min Credit Score
20–25%
Down Payment
30-year fixed available
Loan Term
Non-QM, varies by lender
Rate Type
DSCR Loans in Redding
Lenders divide the property's monthly rent by the mortgage payment. A ratio at or above 1.0 means the rent covers the debt. Many lenders want 1.2 or higher.
Most DSCR programs require a 620-680 credit score minimum. Expect 20-25% down. Reserves of 6-12 months are common. Rates vary by borrower profile and market conditions.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Redding.
Redding draws investors who want California cash flow without Southern California prices. Single-family rentals here pencil out in ways most coastal markets don't.
A DSCR loan — Debt Service Coverage Ratio — qualifies you based on what the property earns, not what you earn. That changes everything for investors with complex income.
Lenders divide the property's monthly rent by the mortgage payment. A ratio at or above 1.0 means the rent covers the debt. Many lenders want 1.2 or higher.
DSCR is a non-QM product. Most retail banks won't touch it. You need a broker with access to wholesale non-QM lenders who actually close these.
Pricing varies wildly across lenders on DSCR deals. One lender might hit you with a 2-point premium. Another prices it near conventional. Shopping matters here.
The most common DSCR mistake I see: investors use projected rent instead of actual market rent. Lenders want a third-party rent schedule — get it early.
Short-term rental properties in Redding need extra attention. Some lenders won't use Airbnb income at all. Others will, with the right documentation.
Hard money is faster but far more expensive and short-term. DSCR gives you a 30-year fixed rate and a real hold strategy for a rental property.
Bank statement loans look at your personal deposits. DSCR ignores your income completely. If the property covers the debt, that's the whole story.
Redding's rental market benefits from a stable base of healthcare, retail, and state workers. That tenant pool keeps vacancy low and rents predictable.
Shasta County property values are accessible. That means lower loan amounts and easier DSCR ratios to hit compared to buying in Sacramento or the Bay Area.
Most lenders want a 1.0 minimum, with better pricing at 1.2 or higher. Redding rents often support a solid ratio on entry-level investment properties.
Some lenders allow it with documented STR income history. Others require long-term lease income only. Lender selection matters a lot here.
No. DSCR lenders qualify the property, not you. Personal income docs are not required for approval.
Most programs require 20-25% down. A few lenders will go to 15% with a stronger DSCR and credit profile.
Yes. DSCR cash-out refis are common. You pull equity from an existing rental without showing personal income.
Single-family, 2-4 unit, and some small multifamily properties qualify. Condos are eligible but some lenders add restrictions.