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San Dimas investors use DSCR loans to buy rentals without showing W-2s or tax returns. Your rental income does the talking.
The property needs to generate enough rent to cover its own mortgage. Lenders calculate this ratio and approve based on that number alone.
Most San Dimas deals need a DSCR of 1.0 or higher. Some lenders go to 0.75 if you put more down.
This works for single-family rentals near downtown San Dimas and multi-units throughout the area. Property cash flow matters more than your job title.
DSCR Loans in San Dimas
You need 620 credit minimum. Most competitive rates start at 680. Credit matters less here than on conventional loans.
Expect to put down 20-25% for purchases. Cash-out refinances cap at 75% LTV in most cases.
Lenders pull a rent schedule or appraisal with market rent analysis. That rental number divided by your mortgage payment is your DSCR.
No income verification beyond the property itself. Self-employed investors and high earners with complex returns love this structure.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in San Dimas.
San Dimas investors use DSCR loans to buy rentals without showing W-2s or tax returns. Your rental income does the talking.
The property needs to generate enough rent to cover its own mortgage. Lenders calculate this ratio and approve based on that number alone.
Most San Dimas deals need a DSCR of 1.0 or higher. Some lenders go to 0.75 if you put more down.
We work with 30+ non-QM lenders who price DSCR loans differently. Rate spreads between top and bottom quotes run 1-2 points.
Some lenders offer better pricing on higher DSCR ratios. Others beat the market on cash-out deals or properties under 1.0 DSCR.
Portfolio lenders often give more flexibility on property condition than aggregators. That matters for San Dimas fixers.
Closing takes 21-30 days typically. Faster than conventional because there's no employment verification dance.
Most San Dimas investors use DSCR loans because California tax returns scare conventional underwriters. Depreciation kills stated income.
We see investors lock DSCR loans on properties they plan to stabilize. Get tenants in place, then refi to conventional in 12 months.
Properties near San Dimas High School and around Downtown rent strong. Those deals underwrite better because appraisers find solid comps.
Don't assume you need perfect 1.25 DSCR. We close deals at 0.85-0.95 regularly with compensating factors like higher credit or reserves.
Hard money costs 9-12% and requires payoff in 12 months. DSCR gives you 30-year fixed rates around 7-8% with no balloon.
Conventional investor loans beat DSCR on rate by 1-1.5%. But they require tax returns and limit you to 10 financed properties.
Bank statement loans work if you need personal residence financing. DSCR works better for pure rental purchases with no occupancy games.
Bridge loans make sense for heavy rehabs. DSCR works when the property is rentable now or needs light cosmetic work only.
San Dimas sits in a strong rental pocket of eastern LA County. Families rent here for the schools before they buy.
Properties near the Village and Metrolink station command premium rents. Those higher rents improve your DSCR calculation.
Watch for HOA restrictions in some San Dimas neighborhoods. Lenders may reject properties with rental caps or short-term bans.
Appraisers sometimes struggle finding investor comps in smaller San Dimas pockets. Pick properties on streets with multiple rentals when possible.
Most lenders want 1.0 or higher, meaning rent covers the mortgage payment. Some go to 0.75 DSCR with 25-30% down and strong credit.
Most DSCR lenders require 12-month lease terms. Short-term rental income doesn't qualify unless you find a specialty lender.
Yes. Cash-out refinances pull equity from performing rentals without income verification. Expect 70-75% max LTV on cash-out deals.
No seasoning requirement on most DSCR loans. You can refinance immediately if rates drop or you want to pull equity out.
Lenders use market rent from the appraisal, not actual collected rent. Vacant properties qualify based on rental potential.
Yes, typically 1-2% higher. You pay for the flexibility of no income verification and no property count limits.