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Coachella draws serious short-term rental investors. Festival season alone can generate enough income to cover months of debt service.
DSCR loans skip your W-2 entirely. The property's rental income is what gets you approved — not your tax returns.
620+
Min Credit Score
1.0 (some at 0.75)
Min DSCR Ratio
20–25%
Down Payment
Allowed
LLC Vesting
Non-QM / Investor
Loan Type
DSCR Loans in Coachella
Lenders calculate your DSCR by dividing the property's gross rental income by its monthly debt payment. A ratio of 1.0 means the rent covers the mortgage exactly.
Most lenders want a DSCR of 1.0 or higher. Some go down to 0.75 with a larger down payment. Credit score minimums typically start at 620 to 640.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Coachella.
Coachella draws serious short-term rental investors. Festival season alone can generate enough income to cover months of debt service.
DSCR loans skip your W-2 entirely. The property's rental income is what gets you approved — not your tax returns.
Lenders calculate your DSCR by dividing the property's gross rental income by its monthly debt payment. A ratio of 1.0 means the rent covers the mortgage exactly.
DSCR is a non-QM product. That means retail banks rarely offer it. You need a broker with access to wholesale non-QM lenders.
We work with 200+ wholesale lenders. Several specialize specifically in short-term rental DSCR deals in high-demand markets like Coachella Valley.
The tricky part with Coachella STR deals is income documentation. Lenders want to see an AirDNA report or a lease — not just your verbal estimate of festival revenue.
Seasoned lenders use a market rent analysis. If the property has no rental history, they'll rely on a comparable rental schedule from the appraiser.
A conventional investment loan checks your DTI — debt-to-income ratio — using your personal income. If you own multiple properties, that DTI gets ugly fast.
DSCR sidesteps all of that. Each deal stands on its own. That's why investors scaling a portfolio in Coachella Valley almost always prefer DSCR over conventional.
Coachella sits in Riverside County. Property taxes run roughly 1.1% to 1.25% of assessed value. That affects your debt service calculation directly.
HOA fees on gated STR communities add to monthly obligations. Run the full PITIA — principal, interest, taxes, insurance, and association fees — before assuming you'll clear a 1.0 DSCR.
Yes. Many lenders accept short-term rental income. They typically use an AirDNA market analysis or a signed rental schedule from the appraiser.
Most lenders require 1.0 or above. Some allow 0.75 with a stronger down payment and higher credit score.
Yes. Most non-QM lenders allow LLC vesting. It's one of the main reasons investors prefer DSCR over conventional financing.
Expect 20 to 25% down for most programs. Rates vary by borrower profile and market conditions.
No. Qualification is based on the property's income, not yours. Tax returns are not required on standard DSCR programs.
DSCR loans are long-term, typically 30-year fixed or ARM products. Hard money is short-term bridge financing with much higher rates.