DSCR Loan California: Rental Property Loans That Qualify on Rent
A DSCR loan in California lets real estate investors qualify for a rental property based on the rent it brings in, not tax returns or W-2s. Ted Erickson brokers DSCR purchase, refinance and cash-out loans for non-owner-occupied rentals in Marin, Sonoma and across California, comparing many lenders to find the right fit.
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DSCR Loan California Facts at a Glance
How a DSCR loan works and what Ted will ask for before he shops your deal.
| DSCR loan item | What it means for you |
|---|---|
| How you qualify | The property’s rent compared with its full monthly payment: principal, interest, taxes, insurance and any HOA dues |
| Property | Non-owner-occupied investment property only. It is a business-purpose loan. |
| Loan uses | Buy a rental, refinance, or cash-out refinance |
| Borrower | You personally or your LLC |
| Personal income | Not the main test. Tax returns and W-2s usually aren’t needed. |
| Rent coverage | Varies by lender. Some lenders accept rent below the payment, or no ratio at all. |
| What Ted asks for | Property address, price or value, lease or market rent, credit, down payment, reserves and investor experience |
| Where | Marin, Sonoma and the rest of California |
Why use a broker for a DSCR loan in California?
DSCR rules change from lender to lender: the rent coverage they require, the property types they accept and the reserves they want. A bank offers only its own program. As a broker with Barrett Financial Group, Ted takes one file to many DSCR lenders and finds the one whose rules fit your rental, including no-ratio options.
Ted Erickson brokers DSCR loans for California investors, including rentals in Marin and Sonoma counties. DSCR loans are business-purpose loans for non-owner-occupied investment property only. Not every lender requires the rent to cover the payment one-to-one, and some offer no-ratio DSCR loans. That is how Ted gets more of these loans closed. Options matter.
How a DSCR Loan Works
DSCR stands for debt service coverage ratio. The lender compares the property’s rent to its monthly payment, including principal, interest, taxes, insurance and any HOA dues. If the rent covers the payment by enough, the property qualifies. Your personal income is not the main test.
Who DSCR Loans Fit
- Self-employed investors whose tax returns don’t show their real cash flow
- Investors adding to a portfolio of rentals
- Buyers who want to close in an LLC
- Investors refinancing a rental, including cash-out
What Ted Will Ask For
- The property address and purchase price or current value
- The lease, or the expected market rent
- Your credit, down payment and reserves
- Your experience as an investor, if any
Requirements vary by lender and program. Ted shops your deal across lenders and tells you what actually applies to it.
Then he shops the loan. DSCR lenders price the same loan very differently, so once Ted knows which lenders will approve your property, he compares their pricing and terms side by side to find the strongest offer.
Tell Ted What Happened
Got turned down, stuck in underwriting, or have a deal that doesn’t fit the box? Call or text Ted directly, or start your application online.
Theodore Emery Erickson · NMLS #223442 · (415) 717-0477
Barrett Financial Group, L.L.C. · NMLS #181106 · NMLS Consumer Access
Branch: 3207 Grey Hawk Court, Suite 110, Carlsbad, CA 92010
CA 60DBO-46052 and 41DBO-148702. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Equal Housing Opportunity. Equal Housing Lender. This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines and property eligibility.
DSCR Loan Questions
Straight answers to what California investors ask most about DSCR loans.
Call or text (415) 717-0477