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Sonora sits in Tuolumne County's Sierra Nevada foothills. Short-term rentals and vacation properties drive strong investor interest here.
DSCR loans fit this market well. Lenders qualify you on what the property earns — not your W-2 or tax returns.
620+
Min Credit Score
1.0 – 1.25
Min DSCR Ratio
20–25%
Down Payment
None required
Income Docs
Up to 30 years
Loan Term
DSCR Loans in Sonora
DSCR stands for Debt Service Coverage Ratio. A ratio of 1.0 means the rent covers the mortgage exactly. Most lenders want 1.1 or higher.
Expect a minimum 620 credit score. Most lenders want 20-25% down on investment property.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Sonora.
Sonora sits in Tuolumne County's Sierra Nevada foothills. Short-term rentals and vacation properties drive strong investor interest here.
DSCR loans fit this market well. Lenders qualify you on what the property earns — not your W-2 or tax returns.
DSCR stands for Debt Service Coverage Ratio. A ratio of 1.0 means the rent covers the mortgage exactly. Most lenders want 1.1 or higher.
DSCR is a non-QM product. Most big banks don't touch it. You need wholesale lenders who specialize in investor loans.
Rates run higher than conventional. That's the trade-off for skipping income verification. Rates vary by borrower profile and market conditions.
Sonora and the surrounding foothills attract Airbnb investors. Some lenders will use projected short-term rental income — not just long-term lease comps.
Not every DSCR lender accepts short-term rental projections. That distinction alone can determine whether a deal works or dies.
Hard money is faster but expensive — think short-term bridge, not a hold strategy. DSCR gives you a 30-year fixed with no income docs.
Bank statement loans work if you want to use personal income. DSCR works when the property stands on its own.
Tuolumne County is rural. Some lenders apply stricter guidelines for rural or small-market properties. Always confirm before you're deep in a deal.
Sonora's proximity to Yosemite fuels vacation rental demand. That helps DSCR ratios — but lender acceptance of short-term income still varies.
Most lenders require a DSCR of 1.0 to 1.25. Some allow below 1.0 with stronger credit and larger down payment.
Some lenders accept short-term rental projections. Not all do — this is the first question to ask any DSCR lender.
It can. Some wholesale lenders add overlays for rural markets. We screen for lenders comfortable with Tuolumne County deals.
Plan for 20-25% down. Some lenders allow 15% with stronger DSCR and credit profile.
Often yes — if the rental income covers the mortgage. The key is finding a lender who counts short-term rental income.