© SAN DIEGO SAN DIEGO · CA
SAN DIEGO DSCR LOANS
Rental property loans that qualify on the rent, not your tax returns: 5 to 40 year fixed terms from 6.50%, up to 80% LTV, with short-term rental and ADU income permitted.
CALL OR TEXT US (619) 617-2797
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A DSCR loan qualifies a rental property on its own income. The lender divides the rent by the full monthly payment, principal, interest, property taxes, insurance and any association dues, and if the ratio works the loan works: no tax returns, no debt-to-income ratio and no employment verification. For San Diego investors who are self-employed, who already hold several properties or who would rather keep their personal income out of the file, it is the long-term loan that fits.
Loan Goat's rental DSCR loan runs 5, 7, 30 and 40 year fixed terms at rates from 6.50% to 9.99% on the Non-QM tier, up to 80% LTV, with a 620 minimum credit score. It covers non-owner occupied single family homes, condos and townhomes, and 2 to 4 unit buildings. First-time investors are accepted, and short-term rental income, ADU income and non-warrantable condos are permitted. The portfolio and multifamily term loans add larger buildings and mixed use for landlords with experience.
In San Diego the ratio is usually decided by the payment, not the rent. Below are the published terms, the costs that move a San Diego DSCR ratio, what the city's short-term rental rules mean for the income and the questions investors ask before they call (619) 617-2797.
© THE TERMS SAN DIEGO · CA
SAN DIEGO DSCR LOANS: THE PUBLISHED TERMS
| PROGRAM | RATES | LEVERAGE UP TO | TERMS | LOAN AMOUNTS |
|---|---|---|---|---|
| RENTAL DSCR | 6.50% to 9.99% Non-QM | LTV 80% | 5, 7, 30 and 40 year fixed | Sized to the property |
| RENTAL PORTFOLIO | 6.50% to 9.99% Non-QM | LTV 80% | 5, 7, 30 and 40 year fixed | Sized to the property |
| MULTIFAMILY TERM | 6.50% to 9.99% Non-QM | LTV 80% | 5, 7, 30 and 40 year fixed | Sized to the property |
Starting rates for qualified borrowers, from the published terms cards. Points and fees are quoted on the Letter of Intent. Rates are subject to change without notice and are not a commitment to lend.
REQUIREMENTS · RENTAL DSCR
- Minimum Credit Score
- 620
- Property Type
- SFR, Condo/Townhome, 2-4 Units
- Occupancy
- Non owner occupied
- Experience
- First time investor OK
BENEFITS
- No prepayment penalty
- Interest rates only options available
- DTI not calculated
- Large deposits do not need to be sourced
- Short term rental income permitted
- ADU income permitted
- Non warrantable condos permitted
- Recently listed properties OK
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WHAT MOVES A SAN DIEGO DSCR RATIO
Property tax resets on purchase. A California purchase is reassessed at the price you pay, so a property the seller has owned for twenty years can show a tax bill far below what yours will be. Underwrite the new tax, not the one on the listing.
Special taxes and dues come next. Newer master-planned communities carry Mello-Roos special taxes on top of the base rate, with eastern Chula Vista's Otay Ranch and Eastlake the best-known examples, and condos everywhere carry association dues. Both count in the payment the rent has to cover.
Insurance is the third. Premiums have risen across California, and in fire-exposed parts of the county, from the East County foothills to the backcountry, coverage can take longer to place. The premium sits in the payment, so get a real quote before you write the offer.
Short-term rentals have rules of their own. The rental DSCR loan permits short-term rental income, but inside the City of San Diego a short-term rental needs a license under the city's short-term residential occupancy ordinance, and whole-home licenses are capped: at 1% of the city's housing units outside Mission Beach and 30% of the units in Mission Beach. Plan a coastal property on the income it can legally earn, licensed short-term income or long-term rent, and run both in the DSCR calculator.
THE PROCESS
- Complete your application
- Submit required documentation
- Sign your Letter of Intent
- We process and close your loan in 5-7 days
© LOAN SCENARIOS SAN DIEGO · CA
WHEN SAN DIEGO INVESTORS USE DSCR LOANS
- 1031 EXCHANGE A replacement rental bought in an exchange can be financed long-term on its rent from the day it closes.
- NON-WARRANTABLE CONDOS Downtown and beach-area condos in buildings that fail conventional review are permitted on the rental DSCR loan.
- SELF-EMPLOYED Self-employed investors qualify on the property's rent, with no tax returns, no W-2s and no debt-to-income ratio.
- VACATION RENTAL Furnished coastal rentals can qualify on short-term rental income where the property holds a city license; without one, the long-term rent carries the loan.
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SAN DIEGO BORROWERS, IN THEIR WORDS
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This team is equipped with professional, knowledgeable, patient, friendly, and responsive members! We were able to purchase our first investment property with the help and guidance of Milad and his team. They answered our questions...
GABI JUACHE -
As a business owner traditional lending doesn't fit my finances, which is why Loan Goat is a godsend. They are able to work with you, understand what you're trying to do and get it done.
NEVENKA MOROZIN -
I recently worked with Loan Goat, and my experience was fantastic. From start to finish, the team was attentive, knowledgeable, and genuinely interested in helping me find the best loan options for my needs. They walked me through every...
LUIS GONZALEZ -
This team is equipped with professional, knowledgeable, patient, friendly, and responsive members! We were able to purchase our first investment property with the help and guidance of Milad and his team. They answered our questions...
GABI JUACHE -
As a business owner traditional lending doesn't fit my finances, which is why Loan Goat is a godsend. They are able to work with you, understand what you're trying to do and get it done.
NEVENKA MOROZIN -
I recently worked with Loan Goat, and my experience was fantastic. From start to finish, the team was attentive, knowledgeable, and genuinely interested in helping me find the best loan options for my needs. They walked me through every...
LUIS GONZALEZ
© QUESTIONS SAN DIEGO · CA
SAN DIEGO DSCR LOANS, ANSWERED
Straight answers to what borrowers ask before they call. Questions we answer elsewhere link to the page that owns them.
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Our rental DSCR loan publishes 6.50% to 9.99% on the Non-QM tier, on 5, 7, 30 and 40 year fixed terms, at up to 80% LTV with a 620 minimum credit score. Where a specific loan prices depends on the ratio, the leverage, the credit and the property. Rates are subject to change and are not a commitment to lend.
Rental property loans -
Divide the monthly rent by the full monthly payment: principal, interest, property taxes, insurance and any association dues or Mello-Roos. At 1.00 the rent covers the payment exactly; above it there is room to spare. In expensive coastal neighborhoods the ratio can land near 1.00 once the reassessed tax and a real insurance quote are counted, so run the numbers before you offer.
DSCR calculator -
Short-term rental income is permitted on the rental DSCR loan. Inside the City of San Diego the property needs a short-term residential occupancy license to earn it, and whole-home licenses are capped, so plan the loan on what the property can legally earn: licensed short-term income, or the long-term rent if it will not hold a license.
Short-term rental loans -
Yes. ADU income is permitted on the rental DSCR loan, so a main house and an ADU on the same lot can both count toward the rent.
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Yes, on the rental DSCR loan, for single family homes, condos and townhomes, and 2 to 4 unit buildings. The portfolio and multifamily term loans require landlord experience.
DSCR loan requirements -
DSCR loans are business purpose loans on non-owner occupied property, and most investors hold the property in an LLC.
LLC vesting for investment loans -
Yes, and it is the most common way investors use one: buy and renovate with a bridge or fix and flip loan, lease the property, then refinance into a 30 or 40 year fixed DSCR loan once the rent and the finished value support it.
San Diego fix and flip loans
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BEFORE YOU APPLY
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SAN DIEGO, OUR HOME MARKET.
- CLOSED LOANS SINCE 2022
- LOANS FUNDED ACROSS 46 STATES
- Lending footprint, 46 states
- Home markets: California and Arizona
- San Diego headquarters
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