Question 1

What DSCR ratio do I need in Sonoma?

Accepted Answer

Most lenders require 1.0 minimum, meaning rent covers the mortgage payment. Ratios above 1.25 unlock better pricing and lower down payment requirements.

Question 2

Can I use Airbnb income for DSCR qualification?

Accepted Answer

Yes, but lender policies vary. Some use full documented income while others cap it at 75% of gross revenue to account for vacancy and seasonality.

Question 3

Do DSCR loans work for wine country vacation rentals?

Accepted Answer

Absolutely. The property's rental income qualifies you, not your W-2. Just confirm your property sits in a zone that permits short-term rentals before applying.

Question 4

How much down payment do I need?

Accepted Answer

Expect 20-25% down for most Sonoma investment properties. Higher DSCR ratios sometimes unlock 15% down programs with select lenders.

Question 5

Can I avoid prepayment penalties on a DSCR loan?

Accepted Answer

Many lenders build in 2-3 year penalties, but we find no-penalty options for investors planning to refinance when rates improve. It's negotiable upfront.

DSCR Loans in Sonoma: Finance Investment Properties on Rental Income Alone