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Coronado's vacation rental and military housing demand creates consistent rental income that works well for DSCR financing. Properties near the Naval Base and beach areas command premium rents.
Tourist appeal drives year-round occupancy in this market. Lenders view Coronado rentals favorably because of stable tenant demand and limited housing supply.
You need a DSCR of 1.0 or higher to qualify—meaning monthly rent covers the mortgage payment. Most Coronado properties hit 1.25 DSCR because rents run high relative to purchase prices.
Lenders require 20-25% down and credit scores above 660. Your tax returns don't matter. The property's rental income is what gets you approved.
DSCR lenders use market rent appraisals or existing lease agreements to calculate income. Short-term rental income counts if you provide an operating history or comparable rental analysis.
Rates typically run 0.75-1.5% above conventional loans. We shop 200+ lenders to find those with the best pricing for Coronado investment properties.
Coronado's tight inventory makes DSCR loans essential for investors who can't wait months for traditional financing. Properties move fast here—DSCR closes in 3-4 weeks.
Most buyers underestimate Coronado's rental potential. A beach cottage that seems overpriced often rents for $6,000+ monthly during peak season. Run the numbers before dismissing a property.
Bank statement loans require 12-24 months of statements and focus on personal income. DSCR ignores your income entirely—only the property's rent matters.
Hard money works for fix-and-flip projects but carries 8-12% rates. DSCR offers 6-8% rates for investors holding rental properties long-term.
Coronado's short-term rental regulations require a business license and limit rental frequency in some zones. Lenders need proof of compliance before approving DSCR loans on STR properties.
Properties south of Orange Avenue typically qualify more easily because zoning allows unrestricted rentals. North Island areas near the base attract military tenants but may have HOA rental restrictions.
Yes. Lenders order a market rent appraisal to estimate income. The appraiser compares similar Coronado rentals to determine what your property should generate monthly.
Yes, if you provide an operating history or rental analysis. Lenders calculate average monthly income and verify compliance with local STR regulations before approval.
Most hit 1.2-1.3 DSCR because rents run high. Beachfront properties often exceed 1.5 DSCR during peak season, but lenders use year-round averages for qualification.
Yes. DSCR loans don't count against conventional loan limits. We've closed clients on 5+ properties simultaneously because each loan qualifies independently on rental income.
Plan for 25% down plus 2-3% closing costs. On a $2M property, expect to bring $540K-$560K to close. Reserves typically require 6-12 months of payments.
DSCR Loans in Coronado