Designed for real estate investors who want to grow their portfolio without the hassle of traditional income documentation. Let your property's rental income do the qualifying.
No obligation. No credit check to get started.
California is the largest mortgage market in the country by dollar volume. Most coastal and Bay Area counties are designated high-balance, with conforming limits of $1,209,750 — meaningfully above the national floor. Median home prices in San Francisco, San Mateo, Santa Clara, and Marin counties remain above $1.5M.
California's strict tenant-protection laws (AB 1482, just-cause eviction) shape rental income underwriting. We work with DSCR lenders that price these rules in correctly.
A DSCR loan allows real estate investors to qualify for financing based on the income a property generates rather than their personal income, tax returns, or employment history.
DSCR stands for Debt Service Coverage Ratio. It measures a property's ability to cover its mortgage payment using the rental income it produces. Instead of verifying your personal W-2s, pay stubs, or tax returns, lenders evaluate whether the property itself generates enough income to service the debt.
The formula is simple: DSCR = Property's Net Operating Income / Total Debt Service. A ratio of 1.0 or higher means the property's rental income fully covers the mortgage payment. The higher the ratio, the stronger the loan application.
For example, if a property generates $2,500/month in rent and the total mortgage payment (PITI) is $1,800/month, the DSCR is 1.39 — meaning the property earns 39% more than needed to cover the debt.
Removes the biggest barriers investors face when scaling their portfolio.
Skip the W-2s, pay stubs, and tax returns. Qualify based on the property's rental income alone.
Whether you own one rental or fifty. Long-term rentals, short-term vacation properties, multi-unit buildings — all under one program.
Streamlined documentation and underwriting. DSCR loans often close in 21-30 days.
Straightforward criteria focused on the property's performance and your investment profile.
A DSCR of 1.0 or higher is preferred. Higher ratios unlock better rates. Some programs accept 0.75 with compensating factors.
Most DSCR loans require 20-25%, depending on property type and DSCR ratio.
660 minimum typically required. 700+ qualifies for more competitive rates and lower fees.
Single-family, duplex, triplex, quadplex, condo, townhome, short-term rentals (Airbnb/VRBO).
Getting a DSCR loan is straightforward.
Quick application with property and investment details. No tax returns or pay stubs.
We evaluate the property's rental income using market data, appraisals, and lease agreements.
Once DSCR ratio meets the threshold and credit/down payment check out, you receive a clear approval.
Streamlined closing — often funded in as little as 21 days.
Answers to the most common questions about dscr loans in California.
Lending Arena offers the full mortgage product set across California. See what else might fit your situation.
Lending Arena, NMLS #1603937. Licensed by the California Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act and/or the California Finance Lenders Law. Equal Housing Lender. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. All loans are subject to credit and property approval. Do Not Sell or Share My Personal Information requests can be submitted to privacy@lendingarena.com.