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Vacaville's rental market runs on long-term tenants who work at Travis Air Force Base or commute to the Bay Area. That stability matters when underwriters evaluate rental income for DSCR loans.
Properties near Creekside or Alamo Creek neighborhoods rent fast and hold value. DSCR lenders want to see those rental comps when you apply.
Self-employed borrowers and multi-property investors dominate DSCR applications here. Traditional income verification doesn't work when you own several rentals across Solano County.
DSCR Loans in Vacaville
You need a DSCR of 1.0 or higher. That means monthly rent covers the mortgage payment, taxes, insurance, and HOA fees.
Most lenders require 20-25% down and credit scores above 660. Some will go to 640 if the property's rental income is strong.
The property must be currently rented or have a signed lease. Lenders order an appraisal that includes rental income analysis, not just property value.
Expect 30-year fixed rates 1.5-2.5% above conventional loans. That spread pays for the flexible underwriting that ignores your personal income.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Vacaville.
Vacaville's rental market runs on long-term tenants who work at Travis Air Force Base or commute to the Bay Area. That stability matters when underwriters evaluate rental income for DSCR loans.
Properties near Creekside or Alamo Creek neighborhoods rent fast and hold value. DSCR lenders want to see those rental comps when you apply.
Self-employed borrowers and multi-property investors dominate DSCR applications here. Traditional income verification doesn't work when you own several rentals across Solano County.
DSCR lending isn't standardized like conventional loans. Each lender has different DSCR minimums, rate sheets, and prepayment penalties.
We shop 200+ lenders because one might accept a 0.9 DSCR on a Vacaville duplex while another requires 1.2. That difference decides whether your deal closes.
Some lenders cap DSCR loans at four properties. Others don't care if you own twenty rentals across California.
Prepayment penalties are common—usually 3-2-1 declining over three years. Lock periods run 30-45 days because these loans don't trade on secondary markets like Fannie Mae paper.
Most Vacaville investors mess up the rental income calculation. You can't just multiply asking rent by 12. Lenders use appraised market rent minus 25% vacancy factor.
We see deals die because borrowers didn't account for HOA fees in the DSCR calculation. A $350 monthly HOA kills the ratio on borderline properties.
Timing matters more than borrowers think. If you're between tenants, wait until the new lease is signed before applying. A vacant property tanks your DSCR to zero.
Rate buydowns don't work the same as conventional loans. Paying points on a DSCR loan rarely makes sense unless you plan to hold the property past the prepayment penalty period.
Bank statement loans work better if you're self-employed but only buying one or two properties. DSCR loans shine when you own multiple rentals and don't want to show personal income.
Hard money makes sense for fix-and-flip projects. DSCR loans are for buy-and-hold investors who want 30-year financing, not 12-month bridge terms.
Conventional investment loans beat DSCR rates by 1-2%, but Fannie Mae caps you at 10 financed properties. DSCR lenders don't count.
Vacaville single-family rentals near downtown or Travis AFB appraise with the strongest rental income analysis. Lenders see consistent demand there.
Properties in newer subdivisions like Southtown or Leisure Town often have HOA fees that squeeze DSCR margins. Run the numbers before making offers.
Condos in Vacaville rarely hit 1.0 DSCR because HOA fees run $250-400 monthly. You'll need 25-30% down to make the ratios work.
Solano County property taxes average 1.1-1.2% of assessed value. That's lower than Bay Area counties but still factors into your debt service calculation.
No. Lenders require either current tenants with lease agreements or an appraisal showing market rent. Vacant properties need signed leases before closing.
They count the debt service on existing mortgages but don't cap how many properties you own. Unlike Fannie Mae, there's no 10-property limit.
Most lenders require 1.0 minimum, meaning rent covers all expenses. Some accept 0.9-1.0 with larger down payments or higher credit scores.
DSCR loans ignore your personal income and tax returns entirely. You qualify based solely on the property's rental income versus its expenses.
Yes, if the property is currently rented and the rent supports a 1.0 DSCR. Cash-out refinances are available up to 75% loan-to-value.
Most DSCR lenders require 12-month leases. Short-term rental income requires specialized programs with higher rates and stricter underwriting.