DSCR loans: qualify on the rent, not your tax return.
California's debt-service-coverage loans let real-estate investors finance rental property based on its cash flow — no personal income documentation required.
Built for investors who think in cash flow.
- Buying or refinancing a 1–4 unit rental or short-term rental in California.
- Self-employed or have complex returns that make traditional qualifying hard.
- Scaling a portfolio and want to avoid debt-to-income limits on conventional loans.
- Closing in an LLC and prefer to keep personal income out of the file.
At a glance
What underwriting looks at.
| Factor | Typical requirement | Notes |
|---|---|---|
| DSCR | ≥ 1.00 | Some lenders allow sub-1.0 with larger down / reserves. |
| Down payment | 20–25% | Lower DSCR or lower FICO raises the requirement. |
| Credit score | 660+ | Best pricing at 720+. |
| Reserves | 3–6 mo | Of PITIA, depending on loan size. |
| Income docs | None | No tax returns or pay stubs — qualified on property cash flow. |
| Property types | 1–4 unit, condo, STR | Owner-occupancy not permitted. |
How the DSCR math comes together.
A duplex in Long Beach renting for $4,200/mo against a $3,280 fully-loaded payment (principal, interest, taxes, insurance, and HOA) produces a DSCR of 1.28× — comfortably above the 1.0 threshold most lenders want.
- Gross monthly rent: $4,200
- Monthly PITIA: $3,280
- DSCR = 4,200 ÷ 3,280 = 1.28×
Compliance-safe assumptions. Figures shown are a hypothetical example for educational purposes only and do not represent an available rate, an offer, or a commitment to lend. DSCR program terms, minimum ratios, down payment, reserves, and pricing vary by lender, property, and borrower profile and are subject to change. Investment-property loans are not for owner-occupied residences. All loans subject to underwriting approval. Equal Housing Opportunity · NMLS #2030045.
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