Loading
Loading
Modesto is a cash flow market. Rents are strong relative to purchase prices compared to coastal California.
That spread matters for DSCR loans. When rent covers your mortgage, you qualify — no tax returns needed.
1.0 (most lenders)
Min DSCR Ratio
620–660
Min Credit Score
20–25%
Down Payment
Fixed & ARM options
Rate Type
None
Income Docs Required
DSCR Loans in Modesto
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by the mortgage payment.
Most lenders want a DSCR of 1.0 or higher. A 1.25 ratio gets you better rates. Below 1.0 is still possible with some lenders — expect a higher rate.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Modesto.
Modesto is a cash flow market. Rents are strong relative to purchase prices compared to coastal California.
That spread matters for DSCR loans. When rent covers your mortgage, you qualify — no tax returns needed.
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by the mortgage payment.
DSCR loans are non-QM products. That means banks won't touch them — you need a wholesale lender that specializes in investor financing.
We work with 200+ wholesale lenders. Several have aggressive DSCR programs built for Central Valley price points and Modesto rent rolls.
The biggest mistake I see: investors run the DSCR math on list price but forget to factor in property taxes and insurance. Your real PITIA payment changes the ratio.
Airbnb and short-term rental income can qualify — but only with lenders who accept market rent surveys or STR income history. Not all do. We know which ones do.
Bank Statement loans qualify you on business deposits. Hard Money loans close fast but carry high rates and short terms. DSCR is the middle ground for buy-and-hold investors.
If you own multiple rentals, DSCR scales better than conventional. Fannie Mae caps you at 10 financed properties. Many DSCR lenders have no such cap.
Stanislaus County has no high-cost area designation. DSCR loan limits follow standard guidelines, which is fine given Modesto's price range.
Modesto's tenant base is stable — healthcare, agriculture, and logistics workers drive consistent rental demand. That stability shows up well on rent appraisals used in DSCR underwriting.
Most lenders want 1.0 or above. A 1.25 ratio gets you better pricing. Some lenders go below 1.0 with a higher rate.
Yes. Most DSCR lenders allow LLC vesting. It's one reason investors prefer this product over conventional financing.
No. DSCR loans qualify based on the property's rent, not your personal income. Tax returns are not required.
Some lenders accept Airbnb income or STR market surveys. Not all do. We know which wholesale lenders allow it.
Expect 20-25% down for most programs. Some lenders allow 15% down at lower LTV tiers with stronger DSCR ratios.
Yes. DSCR works well for 2-4 unit and small multi-family properties. Combined rent from all units counts toward the ratio.