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DSCR Loans in Alhambra
Alhambra's rental market attracts serious investors who need financing that ignores personal income. DSCR loans qualify you based solely on what the property earns.
These loans work for single-family rentals, multi-unit buildings, and even properties you're buying as short-term rentals. Your 1040 stays out of the equation.
Most Alhambra investors use DSCR loans when they've maxed out conventional financing or run self-employed businesses with write-offs. The property's rent becomes the underwriting tool.
You need a 620 credit score minimum, though most approved deals sit at 680 or higher. Down payment starts at 20% for long-term rentals, 25% for short-term.
The lender calculates debt service coverage ratio by dividing monthly rent by the mortgage payment. Most require 1.0 or higher, meaning rent covers the full payment.
You can't owner-occupy. These are investment properties only. First-time investors qualify if the numbers work, but expect closer scrutiny on your reserves.
DSCR loans come from non-QM lenders, not Fannie Mae or Freddie Mac. That means rates run 1-2% higher than conventional investor loans.
We access 40+ DSCR lenders who price differently based on property type and DSCR ratio. A 1.25 DSCR gets better terms than a 1.0, and single-family beats multi-unit pricing.
Most lenders use a rental income worksheet or lease agreement for qualification. Some accept market rent appraisals if the property's vacant when you buy it.
Alhambra's proximity to Downtown LA and Pasadena drives strong rental demand, but the DSCR calculation doesn't care about appreciation potential. It's a pure math exercise.
We see investors stumble when they underestimate property taxes and insurance in the DSCR formula. Lenders use actual PITIA, not just principal and interest.
If your DSCR sits at 0.95, don't walk away. Some lenders approve down to 0.75 with compensating factors like high credit scores or extra reserves. Shop the deal.
Conventional investor loans beat DSCR rates but cap you at 10 financed properties and require full income documentation. Bank statement loans verify income through deposits, not rent rolls.
Hard money works for fix-and-flip, not cash-flowing rentals. Bridge loans cost more short-term but transition to permanent financing if you need that structure.
DSCR loans occupy the sweet spot for portfolio investors who earn income through LLCs or have multiple properties. You trade higher rates for zero personal income hassle.
Alhambra's older housing stock means potential maintenance costs that eat into your DSCR. Lenders don't adjust for deferred maintenance, but they'll factor in lower rent if the property shows poorly.
Properties near San Gabriel Boulevard or Valley Boulevard command higher rents due to commercial access and transit. Show your lender recent rental comps from those corridors.
Los Angeles County transfer taxes and HOA fees on condos shrink your debt coverage ratio. Run the full expense picture before you submit the loan application.
Yes. Most DSCR lenders accept a market rent appraisal showing comparable properties. You'll need strong comps to justify the rent figure.
Yes. DSCR loans don't count your other mortgages against personal debt-to-income. Each property qualifies independently based on its own rent.
Some lenders approve ratios as low as 0.75 with higher down payments and reserves. Expect rate premiums for sub-1.0 deals.
Yes. Cash-out and rate-term refinances both work. Most lenders require six months of ownership before refinancing an existing rental.
Yes, but you'll need 25% down and proof the city allows short-term rentals. Some lenders require longer rental history data.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.