DSCR Loans in California
No income verification required. Qualify based on rental income, not personal income. Perfect for real estate investors with 20% down. Close in 21 days.
What is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio. It's a loan program designed specifically for real estate investors who want to qualify based on the property's rental income rather than their personal income.
How DSCR is Calculated:
Example: If your property generates $3,000/month in rent and the total monthly payment (principal, interest, taxes, insurance, association fees) is $2,400, your DSCR is 1.25.
Most lenders require a minimum DSCR of 1.0 to 1.25, meaning the property's rental income must cover (or exceed) the monthly debt payment. The higher the DSCR, the better your terms.
DSCR Lenders California
As experienced DSCR lenders in California, we work with 20+ specialized investment property lenders to find you the best rates and terms. Unlike big banks that don't offer DSCR loans, we specialize in investor financing and can close your loan in 21 days or less.
Why work with us: We shop multiple DSCR lenders simultaneously to ensure you get competitive rates, and our local California expertise means we understand the unique requirements of investing in this market.
DSCR Loan Rates California
Get personalized DSCR loan rates based on your property and financial profile
Factors Affecting Your DSCR Loan Rate:
- DSCR Ratio: 1.25+ gets best rates
- Credit Score: 720+ qualifies for lowest rates
- Down Payment: 25-30% improves pricing
- Property Type: Single-family gets best rates
- Loan Amount: Larger loans may qualify for discounts
- Reserves: More reserves = better terms
DSCR Loan Calculator California
Calculate your Debt Service Coverage Ratio and see if your California investment property qualifies
Property Details
Typically 20-25% for DSCR loans
Analysis Results
Monthly Breakdown
Loan Details
Why Choose a DSCR Loan?
No Tax Returns Required
Perfect for self-employed investors or those with complex tax returns. Qualify based on property cash flow, not personal income documentation.
Fast Approval Process
Close in as little as 21 days. Streamlined underwriting with fewer documentation requirements means faster closings.
Build Your Portfolio
Finance up to 10 investment properties. Each property qualifies on its own merits, making it easier to scale your real estate portfolio.
Flexible Income Sources
W-2, 1099, business income, or no income at all - it doesn't matter. The property's rental income is what qualifies you.
All Property Types
Single-family, condos, townhomes, and 2-4 unit properties all qualify. Both long-term and short-term rentals accepted.
Protect Your Privacy
No need to disclose personal financial details. Your investment properties remain separate from your personal finances.
DSCR Loan California Requirements
Qualification Criteria
- DSCR: Minimum 1.0 (1.25+ for best rates)
- Credit Score: 660+ (680+ preferred)
- Down Payment: 20-25% minimum
- Reserves: 6-12 months PITIA
- Property Type: 1-4 units, SFR, condos
- Loan Amount: Up to $3M+
Required Documentation
- Credit report (we pull this)
- Photo ID (driver's license)
- Proof of down payment funds
- Proof of reserves (bank statements)
- Purchase contract (when ready)
- Lease agreement or rent estimate
✅ NO tax returns, NO W-2s, NO pay stubs, NO employment verification!
Who Benefits from DSCR Loans?
Self-Employed Investors
Business owners and freelancers who write off expenses and show lower taxable income. DSCR loans ignore your tax returns completely.
Portfolio Builders
Investors looking to scale quickly. Each property qualifies independently, making it easier to finance multiple properties simultaneously.
High Net Worth Individuals
Those who prefer privacy and don't want to disclose complex income sources. Asset-based qualification protects your financial privacy.
Out-of-State Investors
Investors buying rental properties in California while living elsewhere. Streamlined process works great for remote transactions.
Foreign Nationals
Non-U.S. citizens investing in U.S. real estate. DSCR loans don't require U.S. credit history or employment verification.
Fix-and-Rent Investors
Those who renovate properties and convert to rentals. Qualify based on after-repair value and projected rents.
DSCR Loan FAQ
What DSCR ratio do I need to qualify?
Most lenders require a minimum DSCR of 1.0, meaning the property's rental income must at least cover the monthly debt payment. However, a DSCR of 1.25 or higher typically qualifies you for better interest rates and terms. Some lenders will go as low as 0.75 DSCR with higher down payments.
Can I use projected rent or do I need a tenant in place?
You can use projected market rent based on a rent appraisal or comparable properties. You do NOT need a tenant in place at closing. We'll order a rent schedule or use comparable rents to determine the property's income potential.
How much down payment do I need?
Typically 20-25% down for DSCR loans. The exact amount depends on your credit score, DSCR ratio, and property type. Higher down payments (30-35%) can sometimes offset a lower DSCR or credit score.
What credit score do I need?
Minimum credit score is typically 660, but 680+ gets you better rates. Some lenders will go down to 640 with compensating factors like higher down payment or strong DSCR.
Can I use a DSCR loan for short-term rentals (Airbnb)?
Yes! Many DSCR lenders accept short-term rental income. We'll use either your existing rental history or a market rent analysis for the area. Some lenders use 75% of projected short-term rental income for qualification.
How many properties can I finance with DSCR loans?
Most DSCR lenders allow up to 10 financed properties, and some have no limit. Each property qualifies on its own cash flow, making it easier to build a large portfolio compared to conventional loans.
Are DSCR loan rates higher than conventional loans?
DSCR rates are typically 0.5% to 1.5% higher than conventional investment property loans, but the trade-off is no income verification and faster approval. For many investors, the convenience and privacy are worth the slightly higher rate.
Can I refinance with a DSCR loan?
Absolutely! DSCR loans work for both purchases and refinances. Many investors use DSCR cash-out refinances to pull equity from existing rentals without having to verify their personal income.
Ready to Finance Your Investment Property?
Hi, I'm Tino Montelongo. I specialize in DSCR loans for California real estate investors. Let me help you get pre-approved in 24 hours with no tax returns or income verification required.
I'll find you the best rate
I understand this market
21 days or less