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Long Beach rental properties qualify for DSCR loans when monthly rent covers the mortgage payment. Multi-unit buildings near the port and beach neighborhoods work especially well.
Investors add properties here without reporting W-2 income or explaining 1099 deductions. The rent determines approval, not your tax returns.
DSCR Loans in Long Beach
You need a 620 minimum credit score and 20-25% down. The property's monthly rent must cover at least 100% of the mortgage payment (DSCR of 1.0).
Higher ratios get better rates. A property with rent at 125% of the payment qualifies at lower pricing than one barely breaking even.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Long Beach.
Long Beach rental properties qualify for DSCR loans when monthly rent covers the mortgage payment. Multi-unit buildings near the port and beach neighborhoods work especially well.
Investors add properties here without reporting W-2 income or explaining 1099 deductions. The rent determines approval, not your tax returns.
You need a 620 minimum credit score and 20-25% down. The property's monthly rent must cover at least 100% of the mortgage payment (DSCR of 1.0).
Most DSCR lenders cap loans at $2-3 million in Long Beach. A few go higher for strong rental properties with long-term leases already in place.
Non-QM lenders price these deals differently. Shopping across 200+ sources typically saves 0.25-0.75% on rate or gets you better prepayment terms.
Properties with existing tenants close faster than vacant units. Lenders use current leases to calculate DSCR, not projected market rent.
Long Beach investors often pair DSCR loans with 1031 exchanges. You can close without showing employment history or explaining business write-offs.
DSCR loans cost 0.5-1.5% more than conventional investor loans. You pay for the flexibility of no tax returns and unlimited properties.
Hard money costs more but closes faster. Bank statement loans verify income differently but still require documentation. DSCR only checks the rent roll.
Long Beach rent control laws affect certain properties built before 1978. Lenders verify exemptions before approving DSCR loans on older buildings.
Coastal properties with short-term rental potential need different calculations. Most DSCR lenders require 12-month leases, not vacation rental projections.
Most lenders require an appraisal with market rent analysis. A few accept this for vacant units, but rates run higher than properties with leases in place.
Yes, up to four units using residential DSCR programs. Larger buildings need commercial financing with different terms and structure.
Monthly rent divided by monthly payment (principal, interest, taxes, insurance, HOA). A $3,000 rent with a $2,400 payment gives you a 1.25 DSCR.
Yes, if you have an existing rental property. The process works like a purchase: approval depends on current rent versus new payment.
Some lenders offer renovation DSCR loans with funds held in escrow. You draw money for improvements, then refinance based on the completed rent.