We help real estate investors across California secure financing using rental income instead of personal income. A DSCR Loan focuses on property cash flow, making it easier to scale your investment portfolio without income documentation.
DSCR Loans in California
About
What Is a DSCR (Debt-Service Coverage Ratio) Loan?
A DSCR Loan is an investment property loan that qualifies borrowers based on the property’s rental income, not their personal income. Approval depends on whether the rental income can cover the monthly mortgage payment. These loans are ideal for real estate investors, landlords, and short-term rental owners.
You may qualify for a DSCR Loan if you meet these criteria:
- Investment Property Only (No primary residence)
- DSCR Ratio: Typically 0.75–1.25+
- Credit Score: Usually 620+
- Down Payment: 15–25%
- Rental Income: Long-term or short-term allowed
- No Personal Income Verification Required
Benefits
Benefits of a DSCR Loan
No Income or Employment Verification
No W-2s, pay stubs, or tax returns
Based on Rental Cash Flow
Approval depends on property performance
Unlimited Investment Properties
No cap on financed properties
Short-Term & Long-Term Rentals Allowed
Airbnb, VRBO, and traditional rentals
Fast Closings
Ideal for competitive investment markets
Entity Ownership Allowed
LLCs and corporations welcome
Types
Types of DSCR Loans We Offer
Long-Term Rental DSCR Loan
Best For: Traditional rental investors
Highlights: Stable cash-flow qualification
Short-Term Rental DSCR Loan
Best For: Airbnb & vacation rentals
Highlights: Uses market rent analysis
Cash-Out Refinance DSCR Loan
Best For: Investors seeking liquidity
Highlights: Access equity without income docs
Purchase DSCR Loan
Best For: New investment purchases
Highlights: Fast approvals
Comparison
DSCR Loan vs. Conventional Investment Loan
DSCR Loan
- Income Used: Rental income only
- Personal Income Required: No
- Property Limit: Unlimited
- Ownership: Personal or LLC
- Best For: Investors
Conventional Loan
- Income Used: Personal income
- Personal Income Required: Yes
- Property Limit: Restricted
- Ownership: Personal only
- Best For: Traditional buyers
FAQs
Frequently
Asked Questions
Still have a question?
JLLendingTeam: A collaborative group specializing in providing tailored lending solutions and financial support for clients.
What DSCR ratio do I need?
Most lenders accept ratios starting at 0.75, though higher ratios get better terms.
Can first-time investors qualify?
Yes, DSCR loans are available even to first-time real estate investors.
What rental income is used to calculate DSCR?
DSCR is calculated using either the current lease agreement or a market rent appraisal (Form 1007) to determine whether the property’s income can cover the mortgage payment.
Do DSCR loans require landlord experience?
In many cases, no prior landlord experience is required, making DSCR loans a great option for both new and experienced real estate investors.
Still have a question?
JLLendingTeam: A collaborative group specializing in providing tailored lending solutions and financial support for clients.
JL Lending Team
Why Choose Us for DSCR Loans?
Local Experts
Serving California’s veterans with deep knowledge of the state’s housing market.
Fast, Tech-Enabled Process
Apply, upload documents, and track your loan online.
Personalized Guidance
We’re not tied to one lender — we find the best loan for you.
Contact Us
Ready to Get Started with Your DSCR Loan?
Grow your real estate portfolio with a DSCR loan that qualifies you based on rental income, not personal earnings. Whether you’re purchasing or refinancing an investment property in California, we make the process simple and fast.
We’ll guide you every step of the way — from deal analysis to closing.