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DSCR Loans in Palmdale
Palmdale's rental market makes DSCR loans a strong fit for investors targeting Antelope Valley properties. These loans ignore your tax returns and focus solely on whether the rent covers the mortgage.
With Palmdale's mix of single-family rentals and multi-unit buildings, investors use DSCR financing to scale portfolios without income documentation headaches. Your property's cash flow is the underwriter.
You need a DSCR of 1.0 or higher—meaning monthly rent equals or exceeds the proposed mortgage payment. Most lenders want 1.2 to 1.25 for the best terms.
Expect 20-25% down minimums and credit scores above 660. Lenders calculate DSCR using market rent or an existing lease, then divide by your PITI payment including taxes and insurance.
DSCR lenders are private capital sources, not Fannie Mae. Rates run 1-2% higher than conventional loans because you're skipping income verification entirely.
Each lender prices DSCR differently based on ratio, reserves, and property type. We shop 30+ DSCR-specific lenders to find the one that fits your Palmdale deal best. Rate variance can hit 0.75% between lenders on identical scenarios.
Palmdale investors often underestimate how taxes and insurance affect DSCR. Lancaster tax rates differ from Palmdale's, and insurance varies by neighborhood—both crush your ratio if mispriced.
We pre-run rent comps before you make an offer. If a property shows 0.95 DSCR, you know immediately you need 30% down instead of 20% to hit lender minimums. Saves dead deals.
Bank statement loans require 12-24 months of statements and underwrite your deposits. DSCR loans don't touch your bank accounts—just the property's rent schedule.
Hard money works for fix-and-flips under 12 months. DSCR loans are 30-year mortgages for buy-and-hold investors who want permanent financing without showing personal income. Different tools, different goals.
Palmdale's rental demand comes from aerospace workers and families priced out of west LA County. Single-family homes near Rancho Vista or Anaverde Hills rent consistently, which lenders favor for DSCR approvals.
Multifamily properties in older Palmdale neighborhoods can pencil well on DSCR if rents are documented. Lenders want lease agreements or broker opinion letters showing market rent—we coordinate those for you during underwriting.
Yes, lenders accept appraisal rent schedules or broker opinion letters. Vacant properties qualify based on market rent, not current occupancy.
Most lenders require 1.0 minimum, but 1.25 gets better rates and terms. We help structure down payments to hit the ratio you need.
Absolutely. Duplexes through fourplexes qualify if total rent meets DSCR requirements. Some lenders approve up to 8-unit buildings.
Expect 6-12 months of PITI in reserves per property. Requirements increase with multiple financed investment properties.
Yes, most DSCR lenders allow LLC ownership. Rates and terms stay the same as personal name financing.
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.