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Carlsbad is one of San Diego County's strongest rental markets. Coastal demand, tourism, and limited inventory keep vacancy rates low and rents competitive.
That rental income strength works directly in your favor with a DSCR loan. Lenders look at what the property earns — not what you personally make.
620+
Min Credit Score
1.0 – 1.1
Min DSCR Ratio
20 – 25%
Down Payment
None Required
Income Docs
Up to 30 Years
Loan Term
DSCR Loans in Carlsbad
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by the mortgage payment. A ratio of 1.0 means rent covers the loan exactly.
Most DSCR lenders want a ratio of 1.1 or higher. Credit score minimums typically start at 620. Down payment is usually 20-25% for investment properties.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Carlsbad.
Carlsbad is one of San Diego County's strongest rental markets. Coastal demand, tourism, and limited inventory keep vacancy rates low and rents competitive.
That rental income strength works directly in your favor with a DSCR loan. Lenders look at what the property earns — not what you personally make.
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by the mortgage payment. A ratio of 1.0 means rent covers the loan exactly.
DSCR is a non-QM product. That means it sits outside conventional lending guidelines. Not every lender offers it — and pricing varies significantly across those that do.
At SRK CAPITAL, we work with 200+ wholesale lenders, including many non-QM specialists. Shopping that network is how investors in Carlsbad get competitive rates on these deals.
Carlsbad's short-term rental market is real. Some lenders accept Airbnb or VRBO income using market rent from an appraisal. Others require a 12-month lease. Know which lender you're working with before you sign a purchase contract.
Investors often run into trouble when a property's DSCR comes in just under 1.0. Some lenders will approve it at a higher rate. Others won't touch it. That's where having 200+ lenders behind you matters.
Bank statement loans also skip tax returns. But they require 12-24 months of your personal bank statements. DSCR loans don't care about your deposits at all — only the property's rent.
Hard money loans close faster and have looser standards. But they carry much higher rates and short terms. DSCR loans offer 30-year fixed options, which is what most buy-and-hold investors in Carlsbad actually want.
Carlsbad has strict short-term rental regulations. Check city permit requirements before assuming STR income will qualify. A lender using market rent from an appraisal sidesteps this — but not every lender does.
As of April 2026, San Diego County remains one of California's tightest coastal rental markets. That benefits DSCR borrowers because appraised market rents stay elevated, which pushes your ratio in the right direction.
Most lenders want 1.1 or higher. Some approve deals at 1.0, but you'll pay for it with a higher rate.
Some lenders accept STR income using an appraisal's market rent schedule. Others require a traditional lease. Lender rules vary.
No. DSCR loans qualify based on the property's rental income only. Personal income docs are not required.
Most DSCR lenders start at 620. Higher scores typically get better rates. Rates vary by borrower profile and market conditions.
Yes, but condo projects must meet lender warrantability standards. HOA rental restrictions can also disqualify the property.
Divide the monthly rent by the full mortgage payment (PITIA). A $3,500 rent on a $3,000 payment gives you a 1.17 DSCR.