Question 1

What DSCR ratio do I need to qualify in Orange County?

Accepted Answer

Most lenders require 1.0 or above. Some accept below 1.0 with a larger down payment or higher rate.

Question 2

Can I buy in La Palma using an LLC with a DSCR loan?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. It's one of the main reasons investors prefer this product.

Question 3

Do I need to show tax returns for a DSCR loan?

Accepted Answer

No. DSCR lenders qualify based on the property's rent — not your personal income or tax returns.

Question 4

Can I use short-term rental income to qualify?

Accepted Answer

Some lenders allow it. Many require long-term lease income only. Tell your broker upfront so they find the right lender.

Question 5

How much do I need to put down on a DSCR loan in La Palma?

Accepted Answer

Typically 20–25%. Higher down payments can offset a weaker DSCR ratio or lower credit score.

Question 6

Are DSCR rates higher than conventional investment property rates?

Accepted Answer

Yes, generally. DSCR is non-QM, so rates run higher. Rates vary by borrower profile and market conditions.

DSCR Loans in La Palma, CA — Qualify on Rent, Not W-2s