Question 1

What DSCR ratio do I need in Cloverdale?

Accepted Answer

Most lenders want 1.1 or higher. Some will go down to 1.0 with a stronger credit profile or larger down payment.

Question 2

Can I use Airbnb income to qualify?

Accepted Answer

Some lenders accept short-term rental income with 12 months of documented platform history. Not all do — lender selection matters here.

Question 3

Do I need to show tax returns?

Accepted Answer

No. DSCR loans qualify based on the property's income, not yours. Tax returns are not part of the file.

Question 4

What's the minimum down payment for a DSCR loan?

Accepted Answer

Typically 20-25%. Some lenders require more for short-term rental properties or lower DSCR ratios.

Question 5

Can I use a DSCR loan to buy a vacation rental in Cloverdale?

Accepted Answer

Yes, but lender rules on short-term rentals vary. We identify which lenders accept that income type before submitting your file.

Question 6

How is DSCR different from a conventional investment loan?

Accepted Answer

Conventional loans require full income docs and cap at 10 financed properties. DSCR skips personal income verification and has no portfolio cap with most lenders.

DSCR Loans for Cloverdale Rental Properties