Loading
Loading
Temple City's stable residential character attracts rental investors who value proximity to San Gabriel Valley schools and commuter access. Most investment properties here are single-family homes and older duplexes in established neighborhoods.
Traditional lenders often reject investor deals based on W-2 income or debt-to-income ratios. Investor loans focus on the property's rental income instead, which opens financing to portfolio buyers and self-employed investors.
Investor Loans in Temple City
Most investor loans require 15-25% down for single-family rentals. Credit minimums range from 620 to 680 depending on the program and whether you're financing your first rental or your tenth.
DSCR loans dominate this space—lenders calculate a debt service coverage ratio by dividing projected rent by the mortgage payment. You need a DSCR above 1.0, ideally 1.25, to qualify without proving employment income.
Local decision guide
Use this guide to connect investor loans eligibility, lender expectations, and local market factors before comparing payment options in Temple City.
Temple City's stable residential character attracts rental investors who value proximity to San Gabriel Valley schools and commuter access. Most investment properties here are single-family homes and older duplexes in established neighborhoods.
Traditional lenders often reject investor deals based on W-2 income or debt-to-income ratios. Investor loans focus on the property's rental income instead, which opens financing to portfolio buyers and self-employed investors.
Most investor loans require 15-25% down for single-family rentals. Credit minimums range from 620 to 680 depending on the program and whether you're financing your first rental or your tenth.
Investor loans live in the non-QM space, which means you won't find them at Wells Fargo or Chase. Specialty lenders price these deals based on DSCR, credit score, loan-to-value ratio, and whether the property is already rented.
Rates run 1-2 points higher than owner-occupied conventional loans because lenders price for investor risk. A broker with wholesale non-QM access can shop 30-40 lenders to find the sharpest pricing for your specific deal.
Temple City investors often underestimate how rental appraisals work. Appraisers pull comparable rents, not just sales comps, and a weak rent survey kills deals even when the purchase price looks solid.
I see investors chase 1031 exchanges or portfolio refinances that need fast closes. Hard money bridges the gap when timing matters, then you refi into a DSCR loan once the property stabilizes and shows rent history.
DSCR loans suit long-term buy-and-hold investors who want 30-year fixed terms. Hard money loans work for fix-and-flip projects or bridge financing when you need capital in two weeks, not two months.
Bridge loans offer another angle—short-term financing that gets you into a property while you line up permanent financing or sell another asset. Each program serves a different investment strategy.
Temple City sits in an unincorporated LA County pocket with good schools, which keeps rental demand steady from families. Single-family homes and small multifamily properties dominate the rental stock.
Rent control doesn't apply here, but California's statewide AB 1482 caps annual increases at 5% plus inflation for properties over 15 years old. Factor that into your cash flow models when calculating DSCR.
Yes. Lenders order a rent schedule as part of the appraisal to determine market rent. That projected rent calculates your DSCR even without a tenant in place.
Most programs require 6-12 months of PITI reserves per financed property. The more rentals you finance, the higher your total reserve requirement climbs.
DSCR lenders don't cap property counts like Fannie Mae does. Portfolio investors routinely finance 10, 20, or 50+ properties through non-QM programs.
Some lenders approve DSCR as low as 0.75 with compensating factors like higher credit scores or bigger down payments. Rates increase as DSCR drops.
No. DSCR loans work for rentable properties in livable condition. Fix-and-flip projects need hard money or renovation loans that fund construction draws.