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Berkeley rental demand is relentless. UC Berkeley, strong employment, and tight housing stock keep vacancy rates low and rents high.
That rental income is exactly what DSCR lenders underwrite. Your property's cash flow does the qualifying — your tax returns stay out of it.
620+
Min Credit Score
0.75 – 1.1+
Min DSCR Ratio
20 – 25%
Down Payment
Up to $3M (select lenders)
Max Loan Amount
30-yr fixed available
Loan Term
DSCR Loans in Berkeley
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's gross rent by the monthly mortgage payment. A ratio of 1.0 means rent covers the payment exactly.
Most lenders want a DSCR of 1.1 or higher. Some programs go down to 0.75 — but expect a higher rate and larger down payment at that level.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Berkeley.
Berkeley rental demand is relentless. UC Berkeley, strong employment, and tight housing stock keep vacancy rates low and rents high.
That rental income is exactly what DSCR lenders underwrite. Your property's cash flow does the qualifying — your tax returns stay out of it.
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's gross rent by the monthly mortgage payment. A ratio of 1.0 means rent covers the payment exactly.
DSCR is a non-QM product. Most retail banks won't touch it. You need wholesale lenders who specialize in investor programs.
At SRK CAPITAL, we work with 200+ wholesale lenders. Several run DSCR programs built for high-cost California markets like Berkeley.
Berkeley has a lot of multi-unit properties — duplexes, triplexes, fourplexes near campus. DSCR works well on these because combined rents push the ratio up fast.
Watch for rent control exposure. Some lenders apply a haircut to restricted rents when calculating DSCR. Know what your actual allowable rent is before you run the numbers.
Bank Statement loans also skip W-2s — but they underwrite your business income, not the property's rent. Self-employed investors often use both programs depending on the deal.
Hard Money moves faster but costs more. DSCR gives you a 30-year fixed option. For a buy-and-hold Berkeley rental, DSCR almost always wins on long-term cost.
Alameda County sits in a high-cost market. Loan amounts on Berkeley rentals often push into jumbo territory. Several DSCR lenders cap at $3M — confirm limits early.
Berkeley's rent control ordinance covers most pre-1980 buildings. If you're buying a rent-controlled unit with below-market tenants, run DSCR on current rent — not market rent.
Yes. Most DSCR lenders allow LLC vesting. It's one of the program's biggest advantages for investors building a portfolio.
Some lenders accept Airbnb income using a market rent estimate or 12-month rental history. Not all do — you need the right lender for this.
Most programs start at 620. Scores above 700 get meaningfully better rates. Rates vary by borrower profile and market conditions.
Add both units' gross rents and divide by the total monthly mortgage payment. Higher combined rent makes duplexes easier to qualify.
Yes, but lenders use current allowable rent — not market rent. A below-market tenancy can drag your DSCR below the lender's minimum.
Typically 20-25% for a standard approval. Lower DSCR ratios or lower credit scores usually push that requirement higher.