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DSCR Loans in Vallejo
Vallejo's rental market pulls in Bay Area commuters priced out of SF and Oakland. That tenant demand creates cashflow properties that work for DSCR financing.
Solano County's lower entry prices let investors hit 1.0+ ratios easier than core Bay markets. Most Vallejo properties pencil at 75% LTV without stretching rent assumptions.
You're competing with cash buyers rehabbing foreclosures and out-of-state investors chasing California appreciation. DSCR closes fast enough to stay competitive.
Lenders calculate your debt service coverage ratio: monthly rent divided by monthly PITIA. You need 1.0 minimum—rent covers the full payment. Strong deals hit 1.25.
Credit minimums run 660-680 depending on LTV. Higher scores unlock better rates and loan amounts up to $3M on single properties.
No tax returns, no W-2s, no employment letters. The property income is your income. Perfect for self-employed investors or anyone with complicated personal finances.
Most lenders cap at 80% LTV for purchases, 75% for cashout refinances. Expect 20-25% down plus closing costs and six months reserves.
SRK Capital shops 200+ wholesale lenders who actually fund DSCR loans. Not every non-QM shop does them, and rate spreads hit 150 basis points between best and worst pricing.
Portfolio lenders move faster than aggregators. We route Vallejo deals to lenders comfortable with Solano County—some shy away from anything outside core metros.
Appraisals kill more DSCR deals than credit. Vallejo's mixed inventory means comparables matter. We pre-screen properties before you go hard on purchase contracts.
Vallejo works best for long-term rentals hitting 1.15+ DSCR. Short-term rental income doesn't count unless you show two years of Airbnb tax returns—which defeats the point.
Mare Island and downtown properties appraise inconsistent. Stick to established single-family neighborhoods where comps are clean and rents are documented.
If your deal sits at 0.95 DSCR, don't force it. Either negotiate price down, increase rent, or put more down. Lenders won't flex ratio minimums no matter how good your credit is.
Seasoning matters for cashout refis. Most lenders want six months ownership minimum. Some require 12 months. Plan your capital recycling timeline accordingly.
Bank Statement Loans let you buy rentals using personal income. DSCR ignores your income entirely. Choose DSCR when the property cashflows but your 1099 income looks choppy.
Hard Money works for fix-and-flip. DSCR works for buy-and-hold. Hard money rates hit 10-12% short-term. DSCR runs 7-9% for 30-year fixed.
Conventional investor loans require full income docs and cap at 10 financed properties. DSCR has no property count limit and zero income verification.
Vallejo's rental regulations are landlord-friendly compared to SF or Oakland. No rent control, straightforward eviction process. That stability helps lenders feel comfortable.
Section 8 concentration runs high in certain zip codes. Some DSCR lenders won't count Section 8 as qualifying income. Know your lender's policy before you buy.
Solano County transfer taxes stay reasonable. But rehab costs run higher than you'd expect—factor that into your cashflow math before assuming rents will hit target DSCR.
Ferry access to SF keeps Vallejo competitive for tenants. That transportation link supports rent growth assumptions lenders will actually believe.
Minimum 1.0 DSCR—monthly rent must cover full PITIA payment. Most lenders prefer 1.15+ for best rates and smoothest approvals.
Lenders use appraised market rent, not actual lease amount. Vacant properties qualify fine as long as appraisal supports the rent assumption.
Yes. Expect 6-12 months PITIA in reserves per property. Higher reserve requirements apply above 75% LTV or below 700 credit.
No property count limit. Each property qualifies independently based on its own cashflow and your overall credit profile.
Three weeks typical from application to close. Appraisal turnaround drives timeline—Solano County appraisers can take 7-10 days.
Appraisers use current market rent, not rent growth projections. Strong rental comps in your specific neighborhood improve your qualifying ratio.
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.