Work with the #1 rated California Mortgage Broker for your DSCR loan in California! We don’t sell leads, unlike many other companies you find online. We are your point of contact throughout the DSCR loan process.
If you are looking to refinance an investment property and either don’t believe you will qualify for a conventional loan based on your debt-to-income ratio or if you don’t want to deal with the hassle of conventional loan underwriting, a DSCR loan can be a great option for you!
- Close quickly.
- Less hassle
- No income documentation required.
- Easy application process
- Quick rate quote
Get your Free DSCR Loan Quote Today!
What does DSCR stand for?
DSCR stands for Debt Service Coverage Ratio Loans.
What are DSCR loans?
DSCR loans allow real estate investors to qualify for a mortgage based on a property’s rental income instead of using the borrower’s income to qualify. This makes the underwriting process much easier!
Lenders calculate the amount of current or future rental income on an investment property that will be used to cover the PITIA payment (principal, interest, taxes, insurance, and assessments). Some of our lenders will allow you to qualify based on your interest-only payment, rather than a principal and interest payment.
How long does it take to close a DSCR loan?
We can close DSCR loans in as little as 10 days.
Can I get a DSCR loan for my primary residence?
No, DSCR loans are only available on investment properties.
How is the debt service coverage ratio calculated?
The DSCR ratio is calculated by taking the rental income of the property and dividing it by the proposed PITIA (principal, interest, taxes, insurance, and assessments). We have lenders who will allow you to qualify based on your interest-only payment, rather than principal and interest payments.
How is the rental income determined when calculating the DSCR ratio?
Rental income calculation depends on whether the property has a long-term lease, is a short-term rental property, or is unleased. Below are the calculations for those three different scenarios.
- Long-Term Leased Properties: Lenders will typically use either the lower of the market rent or the lease agreement amount. We can usually use the higher of these two amounts.
- Short-Term Rental Properties: Lenders will use a 12-month average of actual rental income
- Unleased Properties: Lenders will typically use 100% of the market rent on a rent survey report completed by an appraiser.
Minimum Debt Service Coverage Ratio for DSCR loans in California.
While you will be offered lower rates and costs, the higher your DSCR ratio is, our lenders do not have a minimum DSCR ratio.
Pre-payment penalty on DSCR loans in California.
The longer you agree to not pay off the DSCR loan, the better your pricing (rate and costs) will be on your DSCR loan. Our lenders allow for 1, 2, or 3-year prepayment penalties, with the best rates offered for a 3-year prepayment penalty.
Minimum FICO scores for DSCR loans in California.
Our lenders allow for FICOs as low as 640 for DSCR loans.
Minimum Loan Amount for DSCR loans in California.
Our lenders have a minimum loan amount of $50,000 for DSCR loans.
Maximum Loan Amount for DSCR loans in California.
Our lenders have maximum DSCR loans of $3,000,000 on refinances and purchases. For DSCR cashout refinances, maximum loan amounts may depend on your loan-to-value ratio, DSCR ratio and credit score.
Closing a DSCR loan in an LLC in California.
Our lenders will allow you to close your DSCR loan in an LLC.
Maximum loan-to-value (LTV) ratio for a DSCR loan in California.
Our lenders will allow a maximum LTV of 80% for a DSCR loan.
Maximum amount of financed properties for a DSCR loan in California.
Our lenders will allow a maximum of 20 financed properties for a DSCR loan.
