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in Cotati, CA
Cotati sits in the heart of Sonoma County's rental market. Investors and owner-occupants here face very different financing paths.
Conventional loans work for buyers moving in. DSCR loans are built for investors whose income comes from rent, not a W-2.
Conventional loans are the standard for owner-occupied purchases. Lenders look at your income, credit, and debt-to-income ratio.
You'll need at least a 620 credit score. Put 20% down and you skip private mortgage insurance entirely.
DSCR loans skip personal income verification. The property's rent covers the debt — that's the whole qualification.
Lenders typically want a DSCR ratio of 1.0 or higher. That means rent equals or exceeds the monthly mortgage payment.
Conventional lenders scrutinize your personal finances. DSCR lenders scrutinize the property's cash flow. That's the core split.
HousingWire flagged the 30-year fixed hitting 6.57% with applications falling sharply. DSCR rates run higher than conventional — factor that into your cash flow projections. Rates vary by borrower profile and market conditions.
Buying a home to live in near Cotati's downtown? Conventional is your lane. It offers lower rates and flexible term options.
Buying a rental near Sonoma State? DSCR makes sense. Self-employed investors especially benefit when their tax returns understate actual income.
No. DSCR loans are for investment properties only. You need rental income to qualify — not your personal income.
Most DSCR lenders want a 680 or higher. Some go down to 660, but expect a higher rate.
Yes, up to 4 units. But lenders count your personal debt load, so qualifying gets harder with multiple properties.
Divide the monthly rent by the total mortgage payment. A ratio of 1.0 means rent covers the payment exactly.
DSCR loans often close faster. No income docs means fewer conditions to clear before closing.
Yes. DSCR refinances are common for investors who can't show enough income on tax returns to qualify conventionally.