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Laguna Beach is one of the strongest short-term rental markets in Southern California. Vacation demand here is year-round, not seasonal.
DSCR loans — which qualify you based on the property's rent, not your tax returns — are built for this market. Investors with complex income structures use them constantly.
620
Min Credit Score
1.0x (most lenders)
Min DSCR Ratio
20–25% typical
Down Payment
30-year fixed available
Loan Term
Allowed
LLC Vesting
DSCR Loans in Laguna Beach
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by the mortgage payment. A ratio of 1.0 means rent covers the payment exactly.
Most lenders want a DSCR of 1.0 or higher. Some will go below 1.0 with a larger down payment. Credit score minimums typically start at 620, with better pricing above 700.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Laguna Beach.
Laguna Beach is one of the strongest short-term rental markets in Southern California. Vacation demand here is year-round, not seasonal.
DSCR loans — which qualify you based on the property's rent, not your tax returns — are built for this market. Investors with complex income structures use them constantly.
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by the mortgage payment. A ratio of 1.0 means rent covers the payment exactly.
Most banks won't touch DSCR loans. This is a non-QM product, meaning it lives outside conventional lending guidelines. Wholesale lenders built for investors are where these deals get done.
At SRK CAPITAL, we work with 200+ wholesale lenders. That matters here — DSCR guidelines vary significantly from lender to lender, especially on vacation rental properties.
Vacation rental income in Laguna Beach is strong, but some lenders won't use Airbnb or VRBO income at face value. They may use long-term market rent instead — which is lower. That kills deals.
The fix is finding lenders that accept STR income documentation. We know which ones do. That distinction alone can be the difference between approval and denial on a Laguna Beach investment property.
Bank Statement loans also skip tax returns, but they verify your personal income through deposits. DSCR ignores personal income entirely — the property carries the deal on its own.
Hard Money loans close fast but carry high rates and short terms. DSCR loans offer 30-year fixed options. For a buy-and-hold rental in Laguna Beach, DSCR almost always wins on long-term cost.
Laguna Beach has strict short-term rental regulations. Confirm your property's STR permit status before applying — lenders will ask, and unpermitted rental income won't count.
Property values here are high, which often pushes loan amounts into jumbo DSCR territory. Not every non-QM lender goes that high. We target the ones that do.
Some lenders accept short-term rental income. Others use long-term market rent only. We target lenders that work with STR documentation.
No. DSCR loans qualify based on the rental property's income. Your personal returns don't factor into approval.
Yes. Most DSCR programs allow LLC vesting. This is one reason investors prefer DSCR over conventional investor loans.
Most lenders require 1.0 or above. Some go lower with stronger credit or a larger down payment. Rates vary by borrower profile and market conditions.
Yes, typically. DSCR is a non-QM product, so pricing reflects that. Rates vary by borrower profile and market conditions.
Rental restrictions can disqualify the income used to underwrite the loan. Confirm HOA rules before applying — this kills deals late in the process.