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DSCR Loans in Fairfield
Fairfield's rental market runs on DSCR loans. Most investors here finance properties based on rent, not W-2 income.
Single-family rentals and small multifamily units dominate Solano County. DSCR loans let you scale without hitting DTI limits.
Traditional bank loans stall when you own 5+ properties. DSCR financing removes that ceiling entirely.
Fairfield sits between Sacramento and the Bay Area. Investors target renters priced out of both markets.
You need a DSCR of 1.0 or higher. That means monthly rent covers the full mortgage payment, taxes, insurance, and HOA fees.
Most lenders want 20-25% down. Credit scores start at 620, but 680+ unlocks better rates.
The property must be investor-occupied or vacant. Owner-occupied properties don't qualify for DSCR programs.
Lenders order a rent schedule appraisal. The appraiser estimates market rent, not your current lease amount.
SRK CAPITAL works with 200+ wholesale lenders. About 40 of them actively price DSCR loans in Solano County.
Portfolio lenders offer more flexibility on DSCR ratios below 1.0. They price it with higher rates or larger down payments.
Some lenders cap loans at $3M. Others go higher but require reserves equal to 6-12 months of payments.
Rate spreads between lenders hit 0.75% on identical scenarios. Shopping multiple quotes saves thousands over the loan term.
Most Fairfield investors overpay because they apply direct to one lender. Brokers access pricing tiers retail branches never see.
DSCR loans close in 21-30 days. They move faster than agency loans because there's no employment verification or tax return review.
Lenders calculate DSCR differently. Some use net rent minus vacancy factors. Others use gross rent. This shifts your qualifying ratio by 10-15%.
Prepayment penalties run 6-36 months on many DSCR loans. Read the fine print before you lock.
DSCR loans cost 0.5-1.5% more than conventional investor loans. You pay for the flexibility to skip tax returns.
Bank statement loans work for self-employed buyers. DSCR loans work for anyone with rental income, W-2 or not.
Hard money loans close faster but carry 8-12% rates. DSCR rates run 6.5-8.5%, half the cost for long-term holds.
Bridge loans cover fix-and-flip projects. DSCR loans fit buy-and-hold investors who want 30-year amortization.
Fairfield rents run $2,200-$2,800 for single-family homes. That supports DSCR financing on properties up to $450K-$550K with 25% down.
Travis Air Force Base drives steady tenant demand. Military renters prefer short-term leases, which some DSCR lenders flag as higher risk.
Solano County property taxes hit 1.1-1.2%. Factor that into your DSCR calculation or you'll underestimate the payment.
Most Fairfield investment properties are 1970s-1990s builds. Lenders require homes built before 1978 to pass lead paint inspections.
Yes. DSCR loans ignore your W-2 income entirely. They only look at whether the rental property generates enough income to cover its own debt.
The lender uses the appraiser's rent estimate, not your lease. If it's lower, your DSCR drops and you may need a larger down payment.
Yes, up to 4 units. Lenders total the rent from all units to calculate DSCR. Larger buildings require commercial financing.
Yes. DSCR cash-out refis let you pull equity without tax returns. Most lenders cap cash-out at 75% LTV.
Most lenders require 6-12 months of ownership. Some allow immediate refis but use your original purchase price as the value cap.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.