Loading
Loading
Carmel By The Sea is one of California's most coveted rental markets. Short-term vacation demand here is relentless year-round.
DSCR loans are built for exactly this setup. The property's rent qualifies — your W-2 or tax returns don't enter the equation.
1.10+
Min DSCR Ratio
660–680
Min Credit Score
20–25%
Down Payment
None
Income Docs Required
30-Year Fixed
Loan Term Available
DSCR Loans in Carmel-by-the-Sea
Lenders calculate your DSCR by dividing monthly rent by monthly debt payments. A ratio of 1.0 means rent covers the payment exactly.
Most DSCR lenders want a ratio of 1.1 or higher. Strong Carmel rental income often clears that bar without issue.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Carmel-by-the-Sea.
Carmel By The Sea is one of California's most coveted rental markets. Short-term vacation demand here is relentless year-round.
DSCR loans are built for exactly this setup. The property's rent qualifies — your W-2 or tax returns don't enter the equation.
Lenders calculate your DSCR by dividing monthly rent by monthly debt payments. A ratio of 1.0 means rent covers the payment exactly.
DSCR is a non-QM product. Retail banks rarely offer it. You need a wholesale lender who actively prices this program.
At SRK CAPITAL, we shop DSCR rates across 200+ wholesale lenders. That spread matters — non-QM pricing varies widely between lenders.
Carmel's short-term rental income can be strong, but lenders treat STR income differently. Some require a 12-month Airbnb history. Others use a market rent appraisal instead.
Get that detail wrong early and you'll waste weeks. We know which lenders accept STR income and which ones want long-term lease comparables only.
Conventional investment loans cap out at 10 financed properties and require full income docs. DSCR has neither of those walls.
Hard money moves faster but costs more short-term. DSCR gives you a 30-year fixed — real hold financing, not a bridge.
Carmel By The Sea has strict short-term rental regulations. Zoning and permit status directly affect which lenders will fund the deal.
Monterey County luxury price points push many Carmel properties into jumbo territory. Confirm your DSCR lender's max loan amount before you're under contract.
Most lenders want 1.10 or higher. Strong Carmel rental rates often support that, but confirm with actual market rent data.
Some lenders accept short-term rental income with 12 months of history. Others use long-term market rent only — lender policy varies.
Most DSCR wholesale lenders allow LLC vesting. It's one of the program's real advantages for investors protecting their assets.
Expect 20–25% down for most DSCR programs. Some lenders require more on short-term rental properties or higher loan amounts.
Yes, but you need a lender with a jumbo DSCR program. Not every non-QM lender goes that high — we know which ones do.
DSCR qualifies on the property's rent, not your income. Conventional loans require full personal income documentation and cap financed properties at 10.