Question 1

What is a DSCR loan and how does it work in La Palma?

Accepted Answer

DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's rent by its monthly payment — a ratio above 1.0 typically qualifies.

Question 2

Can I use rental income to qualify for an investor loan?

Accepted Answer

Yes. DSCR loans qualify you based on the property's income, not yours. No tax returns or pay stubs required on most programs.

Question 3

How much do I need to put down on an investment property in La Palma?

Accepted Answer

Most investor loan programs require 20-25% down. Hard money lenders may go lower depending on the deal's equity position.

Question 4

How fast can I close on a La Palma investment property?

Accepted Answer

DSCR loans typically close in 2-4 weeks. Hard money can close in days when the deal is clean and documentation is ready.

Question 5

Are investor loans available for multi-unit properties in La Palma?

Accepted Answer

Yes. DSCR and portfolio loan programs cover single-family, 2-4 unit, and small multifamily properties. Each has its own underwriting criteria.

Question 6

Do investor loans in California have prepayment penalties?

Accepted Answer

Many do — especially DSCR and hard money products. Penalties vary by lender, so compare terms before you commit to a rate.

Investor Loans in La Palma, CA — Built for Real Returns