Question 1

Can I use Airbnb income to qualify for a DSCR loan in Laguna Beach?

Accepted Answer

Some lenders accept short-term rental income. Others use long-term market rent only. We target lenders that work with STR documentation.

Question 2

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

Accepted Answer

No. DSCR loans qualify based on the rental property's income. Your personal returns don't factor into approval.

Question 3

Can I buy under an LLC with a DSCR loan?

Accepted Answer

Yes. Most DSCR programs allow LLC vesting. This is one reason investors prefer DSCR over conventional investor loans.

Question 4

What DSCR ratio do I need to qualify?

Accepted Answer

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.

Question 5

Are DSCR loan rates higher than conventional rates?

Accepted Answer

Yes, typically. DSCR is a non-QM product, so pricing reflects that. Rates vary by borrower profile and market conditions.

Question 6

What if my Laguna Beach property has an HOA that limits rentals?

Accepted Answer

Rental restrictions can disqualify the income used to underwrite the loan. Confirm HOA rules before applying — this kills deals late in the process.

DSCR Loans in Laguna Beach: Finance Investment Property on Rental Income