California
DSCR Loans
Are you looking for a flexible and fully customized loan to finance your rental property? If your property is located in California let’s get started.
GET PRE-APPROVED FOR THIS PROGRAM TODAY
CALL TODAY:(813) 928-9610
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USE OUR
DSCR CALCULATOR
DSCR LOANS
(Debt Service Coverage Ratio)
RESIDENTIAL INVESTMENT LENDING BASED ON THE CASHFLOW POTENTIAL OF THE HOME.
👉 KEY PROGRAM HIGHLIGHTS:
- Ideal for Real Estate Investors looking for an easier way to finance rental properties, without the hard money interest rates and terms.
- Investment Homes Only – Owner cannot occupy any part of the property
- Cash-Out for business and investment purposes
- No Tax Returns or Personal Income needed to qualify
- Qualify on the income potential of the property (aka – “DSCR Ratio Formula”)
- Single-Unit Homes and 2-4 Multi-Unit Homes and 5-8+ Unit Properties
- What Does DSCR Stand for? DSCR stands for Debt Service Coverage
⚙️ HOW DSCR LOANS WORK
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DSCR DEBT SERVICE COVERAGE RATIO
DSCR FORMULA:
GROSS RENTS ÷ TOTAL HOUSING PAYMENT
Total Housing Payment = PITIA
(Principle + Interest + Property Taxes + Insurance + Association Dues)
At a Glance
Minimum Down Payment
15% – 20%
Minimum Down Payment to avoid PMI
N/A
Acceptable DSCR Ratio Range
Single Unit properties:
As low as 0.75
Multi-Unit Properties:
Minimum of 1.00 or higher required
* Tips for lowering DSCR Ratios *
Minimum mid-credit score
575 – Max 65% LTV
620 – Max 70% LTV
660 – Max 80% LTV
700 – Max 85% LTV
Min/ Max Loan Amount
$100,000 – $3MM
Loan Repayment Terms
30 years
✅ HOW TO QUALIFY FOR A DSCR LOAN
To qualify for a DSCR Loan, applicants must have the following:
- DOWN PAYMENT of 15% – 20%. For 2-4 unit multi-family homes, the minimum down payment is 20% – 25%.
- MINIMUM FICO for a DSCR Loan is 575 or higher. Scores < 700 may affect LTV / down payment. (see loan originator for details)
- PRIMARY HOME EXPERIENCE with a clean, verifiable residency payment history in the most recent 12 months.
It’s your mortgage. Use it.
Take Cash Out
Paying down your mortgage builds equity you can use to take cash out – great for renovating your home or paying down high-interest debt.
Lower Your Payment
Paying down your mortgage builds equity you can use to take cash out – great for renovating your home or paying down high-interest debt.
Shorten Your Loan Term
Paying down your mortgage builds equity you can use to take cash out – great for renovating your home or paying down high-interest debt.
👔 CLOSE IN THE NAME OF YOUR BUSINESS ENTITY
We allow you to close in the name of your business entity, such as an LLC, LLP, Corporation, S-Corporation, or LLLP. This approach can offer significant liability protection and tax advantages for real estate investors. This is full-recourse lending, meaning that the applicant(s) will personally guarantee the new loan, however it will be recorded on title as the name of your entity. On some of our DSCR programs, we go a step further and do not report the new loan on the applicant’s personal credit report.
Your loan originator will review the specific business entity documentation needed at the time of application.
IF YOU ARE PLANNING ON CLOSING IN THE NAME OF YOUR ENTITY, HERE ARE SOME THINGS TO KNOW:
- All Applicants /Guarantors Must Be Entity Members.
- Single Guarantor Option: A business entity with multiple members can have a single guarantor, provided they are a managing member or a majority owner.
- Multiple Entity Members Option: If your business entity has multiple members, and you are planning to use only one person to guarantee the loan, be sure to discuss this with your loan originator upfront.
- Multiple Business Entities: We allow transactions to close in the name of up to two business entities, as long as there is one guarantor who owns 100% of both entities.