Question 1

What DSCR ratio do I need to qualify in Laguna Niguel?

Accepted Answer

Most lenders require a 1.0 DSCR minimum. Some go to 0.75 with higher rates and stricter LTV caps.

Question 2

Can I use a DSCR loan to buy under an LLC?

Accepted Answer

Yes. Most non-QM DSCR lenders accept LLC borrowers. It's one of the cleaner ways to hold investment property in California.

Question 3

Do DSCR lenders allow short-term rentals in Orange County?

Accepted Answer

Some do, some don't. Lenders that allow it often use a percentage of projected STR income. Confirm this before you make an offer.

Question 4

How is the rent income calculated for DSCR approval?

Accepted Answer

The appraiser completes a rent schedule — called a 1007 form. That projected rent is what lenders use to calculate your DSCR ratio.

Question 5

What down payment is required for a DSCR loan?

Accepted Answer

Expect 20-25% down on most DSCR loans. Some lenders allow 15% with stronger credit and a higher DSCR ratio.

Question 6

Are DSCR rates higher than conventional investor loan rates?

Accepted Answer

Yes, typically. DSCR is non-QM, so lenders price in more risk. Rates vary by borrower profile and market conditions.

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