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San Clemente's coastal rental market is strong. Short-term and long-term rentals both perform well here, which makes DSCR lending a natural fit.
DSCR loans qualify you on what the property earns — not your W-2. That matters when you're buying in a high-demand beach market like San Clemente.
620+
Min Credit Score
20-25%
Min Down Payment
1.1x (typical)
Min DSCR Ratio
30-yr fixed available
Loan Term
Fixed & ARM options
Rate Type
DSCR Loans in San Clemente
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's gross rent by its monthly mortgage payment. A ratio of 1.0 means it breaks even. Most lenders want 1.1 or higher.
Most DSCR programs require a 620+ credit score and 20-25% down. No tax returns. No employment verification. The property's rent does the qualifying work.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in San Clemente.
San Clemente's coastal rental market is strong. Short-term and long-term rentals both perform well here, which makes DSCR lending a natural fit.
DSCR loans qualify you on what the property earns — not your W-2. That matters when you're buying in a high-demand beach market like San Clemente.
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's gross rent by its monthly mortgage payment. A ratio of 1.0 means it breaks even. Most lenders want 1.1 or higher.
DSCR is a non-QM product. Most retail banks don't offer it. You need access to wholesale non-QM lenders — that's where the real program variety lives.
We work with 200+ wholesale lenders at SRK CAPITAL. Several specialize in non-QM coastal California deals. That gives you real options on rate and terms.
San Clemente has a lot of short-term rental properties. Some lenders use market rent, not Airbnb projections, to calculate DSCR. That gap can kill a deal if your broker isn't watching for it.
Seasoned investors often vest in an LLC. Several of our DSCR lenders allow that — most retail banks won't touch it. Know who you're working with before you submit.
Bank Statement loans also skip tax returns — but they qualify on your personal deposits, not the property. DSCR is cleaner for investors with multiple properties.
Hard Money moves faster but costs more. If you need a 30-year fixed on a rental and have time to close properly, DSCR almost always beats hard money on rate and term.
San Clemente sits in Orange County, one of California's most expensive coastal markets. Higher purchase prices mean larger loan amounts — and DSCR lenders do have loan limits that vary by program.
Seasonal rental swings are real here. A lender using peak-month rents to calculate DSCR will give you a very different number than one using annual averages. That's a conversation worth having upfront.
Some lenders accept short-term rental income, others use market rent only. Confirm the lender's policy before you apply — it directly changes your qualifying ratio.
Most lenders want a 1.1 or higher. Some allow 1.0 with a stronger credit profile or larger down payment.
No. DSCR lenders qualify the property, not you personally. Tax returns and pay stubs are not required.
Many non-QM lenders allow LLC vesting. Not all do. This is one of the key differences between lenders we vet before placing your loan.
Most programs require 20-25% down. Higher loan amounts or lower DSCR ratios may push that requirement toward 25-30%.
Conventional loans require income documentation and cap the number of financed properties. DSCR loans have neither restriction, making them better for active investors.