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Newport Beach is one of California's most desirable rental markets. Coastal properties here command strong rents year-round.
DSCR loans — which qualify you based on property income, not your tax returns — are built for this market. High rents mean strong debt service coverage ratios.
1.0 (some at 0.75)
Min DSCR Ratio
680+
Min Credit Score
20-25%
Down Payment
30-Year Fixed Available
Loan Term
Fixed & ARM options
Rate Type
DSCR Loans in Newport Beach
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by the mortgage payment. A ratio of 1.0 or higher usually gets you approved.
Most lenders want a 680+ credit score and 20-25% down. Short-term rental income from platforms like Airbnb can qualify — but lender rules vary significantly.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Newport Beach.
Newport Beach is one of California's most desirable rental markets. Coastal properties here command strong rents year-round.
DSCR loans — which qualify you based on property income, not your tax returns — are built for this market. High rents mean strong debt service coverage ratios.
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by the mortgage payment. A ratio of 1.0 or higher usually gets you approved.
DSCR is a non-QM product. That means most big banks won't touch it. You need wholesale lenders who specialize in investor lending.
At SRK CAPITAL, we work with 200+ wholesale lenders. Many offer DSCR programs with different rent calculation methods and reserve requirements.
Newport Beach properties often carry high purchase prices. Your DSCR ratio is tighter when the mortgage payment is large relative to rent.
Run the numbers before you make an offer. We see deals die at underwriting because buyers didn't check rent-to-payment coverage first.
Bank Statement loans also skip tax returns — but they require 12-24 months of personal bank statements. DSCR ignores your income entirely.
Hard Money loans close faster but carry higher rates and short terms. DSCR gives you a 30-year fixed with no income verification. That's a different tool.
Newport Beach has a strong short-term rental market. Properties near the Balboa Peninsula and harbor areas generate premium nightly rates.
City regulations on short-term rentals matter. Some zones require permits. Lenders want to see permissible rental use before approving DSCR on an STR property.
Most lenders require a 1.0 minimum. Some go below 1.0 with better terms. Higher ratios get better pricing.
Some lenders accept short-term rental income. They'll use a market rent analysis or platform history. Not all lenders allow it.
No. That's the point. Approval is based on property cash flow, not your personal income documents.
Most programs start at 20% down. Some lenders require 25% on condos or short-term rental properties.
Yes. Many DSCR lenders allow LLC vesting. It's one of the biggest advantages over conventional investor loans.
Lenders order a rent schedule from the appraiser. That market rent figure — not your lease — determines your DSCR.