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Cotati sits in Sonoma County where 20+ restaurants are opening in 2026, signaling economic momentum. DSCR loans let investors buy rental properties based on the property's income, not personal W-2s.
DSCR financing works when the property's debt service coverage ratio—gross rental income divided by total loan payments—meets the lender's threshold. Most lenders want a 1.25x ratio minimum.
20-25%
Minimum Down Payment
680
Minimum FICO
1.25x
Min DSCR Ratio
30-45 days
Underwriting Timeline
$897,000
2026 Conforming Limit
DSCR Loans in Cotati
DSCR loans require 20-25% down on investment properties in Cotati. Credit scores typically start at 680, though 700+ is preferred. The key metric is the property's rental income, not your personal income.
Sonoma County's median household income of $102,840 tells you what owner-occupants can afford, but DSCR buyers are different. They're buying for rental income.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Cotati.
Cotati sits in Sonoma County where 20+ restaurants are opening in 2026, signaling economic momentum. DSCR loans let investors buy rental properties based on the property's income, not personal W-2s.
DSCR financing works when the property's debt service coverage ratio—gross rental income divided by total loan payments—meets the lender's threshold. Most lenders want a 1.25x ratio minimum.
DSCR loans require 20-25% down on investment properties in Cotati. Credit scores typically start at 680, though 700+ is preferred. The key metric is the property's rental income, not your personal income.
DSCR lending in California is dominated by portfolio lenders and private money sources. Banks rarely offer DSCR loans because they can't sell them to Fannie Mae or Freddie Mac.
Underwriting takes 30-45 days for DSCR loans. Lenders order appraisals, verify rent rolls, and stress-test the property's cash flow. No-ratio DSCR products exist for properties with lower cash flow, but they carry higher rates.
DSCR loans make sense in Cotati when you're buying a rental property that generates solid cash flow. If the property rents for $3,500/month and your loan payment is $2,200, the 1.59x ratio qualifies easily.
The trap is overpaying for a property hoping rents will rise. Lenders underwrite based on current rent, not future potential. In Cotati's market, that's conservative but fair. Buy properties that work at today's rents, not tomorrow's.
Conventional investment loans require 25% down and your personal income on the application. DSCR loans need 20-25% down but ignore your W-2s entirely. If you're self-employed or have irregular income, DSCR is simpler.
The real difference: conventional lenders care about your debt-to-income ratio. DSCR lenders care only about the property's cash flow. In Cotati, where investors often have multiple properties, DSCR keeps your personal DTI clean and lets you stack more deals.
Apple just opened a new 8,684-square-foot store at Montgomery Village in Santa Rosa in January 2026. That's 15 minutes from Cotati. Job growth in tech and retail supports renter stability.
Sonoma County is advancing $12 million in park projects and a Highway 101 bicycle overpass breaking ground spring 2026. Infrastructure investment signals long-term property value growth.
DSCR is the property's gross rental income divided by total loan payments (principal, interest, taxes, insurance). Lenders want 1.25x minimum. A $3,000/month rent on a $2,400 payment = 1.25x DSCR.
No. DSCR loans require 20-25% down on investment properties. Some lenders offer 15% down on owner-occupied duplexes, but single-family rentals need 20% minimum. The down payment size directly affects your rate and approval odds.
No. DSCR lenders ignore your W-2 income and focus entirely on the property's rental income. Plan on submitting 12 months of rent history or a lease, but personal tax returns are not required.
Most lenders start at 680 FICO, but 700+ is preferred and gets better rates. Some portfolio lenders go down to 660 with 25% down. The property's cash flow matters more than your credit, but lenders still want to see responsible borrowing history.
Standard DSCR takes 30-45 days. The lender orders an appraisal, verifies the rent roll, and stress-tests the property's cash flow. No-ratio DSCR may take slightly longer because the lender is taking more risk.