California DSCR Loan FAQ
Straight answers to the DSCR questions California investors ask most, on qualifying, property types, money, and the process.
Estimate your DSCRAsk us your scenarioDSCR loans come with a lot of specific questions. Here are clear answers to the ones California investors ask most. Every figure is a typical range and depends on the lender and the file.
Generally, 1.25 or higher is comfortable and clears most standard programs. 1.00 to 1.24 still qualifies on many expanded programs. Below 1.00 can work on low-DSCR or no-ratio programs with adjustments.
Sometimes. A 0.75 usually needs a specialized low-DSCR or no-ratio program, often with a larger down payment or a pricing adjustment. It is exactly where broker access to multiple lenders helps.
Minimums often start around 620 to 680 and vary by lender, with better pricing at higher scores. A lower score may still work with more down payment.
Typically 20 to 30 percent, depending on the program, the DSCR, your credit, and the property type. More down raises the DSCR.
Yes, most DSCR programs allow LLC or entity vesting, which is a key reason investors choose them over conventional.
Sometimes. Some programs qualify short-term rentals on projected or documented income, others use long-term market rent. The city also has to allow the STR use.
Yes, rate-and-term and cash-out refinances are available on qualifying programs, subject to DSCR, loan-to-value limits, and seasoning.
Yes, on qualifying programs, based on the property’s DSCR and the lender’s LTV and seasoning rules.
Yes. DSCR is popular precisely because it is built for investors with several properties, past the point where conventional property-count limits apply.
There is generally no conventional-style cap. Portfolio and investor DSCR programs are designed for multiple financed properties.
Yes, 2 to 4 unit properties are eligible, and combined rents often lift the DSCR above a single-family home at the same price.
Yes, warrantable condos on standard programs and many non-warrantable condos through portfolio and non-QM paths. The condo project review is the main hurdle.
Often, for the first few years. The structure varies and can sometimes be shortened or bought down. Know the terms before you sign.
They include standard lender, title, escrow, and appraisal costs, and vary by loan size and program. We give you the real numbers before you commit.
Yes. Taxes are part of PITIA, and California reassesses to your purchase price under Prop 13, plus any Mello-Roos, which raises PITIA and lowers the DSCR.
Often yes. Some programs welcome first-time investors, others want prior experience or more reserves. Matching the file to the right lender is where a broker helps.