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Pacific Grove sits on the Monterey Peninsula — one of California's strongest short-term rental markets. Vacation demand here is year-round, not seasonal.
That consistent rental income is exactly what DSCR lenders want to see. Strong gross rents can offset high purchase prices on the Peninsula.
680 (typical)
Min Credit Score
1.0–1.1
Min DSCR Ratio
20–25%
Down Payment
Non-QM / Investor
Loan Type
None (personal)
Income Docs Required
DSCR Loans in Pacific Grove
DSCR lenders look at one ratio: monthly rent divided by monthly debt payment. A ratio of 1.0 means the property breaks even. Most lenders want 1.1 or higher.
Credit requirements vary by lender. Expect a 680 minimum at most wholesale lenders. Rates vary by borrower profile and market conditions.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Pacific Grove.
Pacific Grove sits on the Monterey Peninsula — one of California's strongest short-term rental markets. Vacation demand here is year-round, not seasonal.
That consistent rental income is exactly what DSCR lenders want to see. Strong gross rents can offset high purchase prices on the Peninsula.
DSCR lenders look at one ratio: monthly rent divided by monthly debt payment. A ratio of 1.0 means the property breaks even. Most lenders want 1.1 or higher.
Most banks don't offer DSCR loans. This is a non-QM product — you need wholesale lenders who specialize in investor financing.
We work with 200+ wholesale lenders. Several of them actively price DSCR loans for California coastal markets. That competition works in your favor.
Airbnb and VRBO income can support DSCR qualification — but lenders handle it differently. Some use a market rent appraisal. Others accept 12 months of platform income history.
Know this before you shop: down payment requirements on DSCR loans run higher than conventional. Plan for 20-25% down on a Pacific Grove investment property.
A conventional investment loan runs your debt-to-income ratio against your personal income. If you're self-employed or already own multiple properties, that math gets ugly fast.
DSCR sidesteps that entirely. The property qualifies itself. That's why investors with complex financials consistently choose this program over conventional investor loans.
Pacific Grove has local short-term rental regulations. Confirm your property and rental strategy comply before you commit to a purchase. Lenders won't catch that for you.
Monterey County property taxes and HOA fees — where they apply — factor into your debt service calculation. Higher carrying costs can push your DSCR below 1.0.
Most lenders want a DSCR of 1.1 or higher. Some lenders allow 1.0, but expect a higher rate or larger down payment.
Yes, but lenders differ on how they calculate it. Some use a market rent appraisal. Others require 12 months of documented platform income.
No. DSCR loans don't use personal income verification. The property's rent-to-debt ratio is what qualifies you.
Yes. Most DSCR lenders allow LLC vesting. It's one reason investors prefer this product for building a portfolio.
Plan for 20-25% down. Some lenders require more depending on property type, credit score, or DSCR ratio.
Yes, typically. DSCR is a non-QM product and priced accordingly. Rates vary by borrower profile and market conditions.