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Davis is a college town. UC Davis drives consistent rental demand year-round — that's exactly the kind of market DSCR lenders want to see.
Investor properties here tend to hold occupancy well. That steady rent roll is what gets your DSCR ratio above 1.0 and your deal approved.
620–660
Min Credit Score
1.0 (some at 0.75)
Min DSCR Ratio
None
Income Docs Required
20–25%
Down Payment
30-yr fixed available
Loan Term
DSCR Loans in Davis
DSCR loans skip your W-2s and tax returns entirely. Lenders look at the property's monthly rent divided by its monthly debt payment.
Most lenders want a DSCR of 1.0 or higher. That means rent covers the mortgage. Credit scores typically need to hit 620-660 minimum.
DSCR is a non-QM product. Most big banks don't offer it. You need a broker with access to wholesale non-QM lenders — that's where pricing lives.
Rates vary significantly across lenders on these loans. Shopping 10 lenders isn't overkill. Rates vary by borrower profile and market conditions.
The number one mistake I see: investors buying in Davis without a rent comps analysis first. Lenders use an appraisal-based rent estimate — not what you think the unit will fetch.
Short-term rentals near UC Davis can produce strong income. But most DSCR lenders want long-term lease comps. Know which income type your lender will credit before you close.
Conventional investor loans cap out at 10 financed properties and require full income docs. DSCR loans have neither of those restrictions for most lenders.
Hard money is faster but expensive — rates often run several points higher. DSCR gives you a 30-year fixed option that hard money never will.
Davis is a small city with limited housing inventory. Multi-unit and student-adjacent properties move fast — having financing lined up before you shop is non-negotiable.
Yolo County property taxes and HOA fees factor into your DSCR calculation. A deal that pencils at 1.15 DSCR can drop below 1.0 when you add those costs in correctly.
No. DSCR loans qualify based on the property's rental income, not yours. Tax returns are not required.
Most lenders want 1.0 or above. Some go as low as 0.75 with a higher rate and larger down payment.
Yes. Lenders use a market rent estimate from the appraisal, not a signed lease. The appraiser sets the number.
Generally yes, if the property is a standard residential asset. Some lenders flag rooming houses — confirm property type eligibility first.
Most DSCR programs require 20-25% down. Some lenders go lower with stronger DSCR ratios and higher credit scores.
Some lenders allow it using Airbnb or VRBO income history. Many still require long-term lease comps — ask before assuming.