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Lemon Grove sits in a sweet spot for San Diego rental investors. It offers lower entry prices than coastal submarkets while still pulling strong tenant demand.
DSCR loans — which qualify you on a property's rental income, not your tax returns — are built for exactly this kind of market.
620–660 typical
Min Credit Score
1.0–1.1x
Min DSCR Ratio
20–25%
Down Payment
Allowed
LLC Vesting
21–30 days
Est. Close Time
DSCR Loans in Lemon Grove
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 payment exactly.
Most lenders want a DSCR of 1.1 or higher. Some will go below 1.0 for strong borrowers, but expect a higher rate. Minimum credit scores typically start at 620 to 660.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Lemon Grove.
Lemon Grove sits in a sweet spot for San Diego rental investors. It offers lower entry prices than coastal submarkets while still pulling strong tenant demand.
DSCR loans — which qualify you on a property's rental income, not your tax returns — are built for exactly this kind of market.
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 payment exactly.
DSCR is a non-QM loan — meaning it falls outside conventional guidelines. Not every lender offers it. Pricing and overlays vary wildly between shops.
We work with 200+ wholesale lenders. On DSCR deals, that access matters. One lender might price an LLC-held property 0.5% higher than another for the same deal.
The biggest mistake investors make on DSCR deals: underestimating the appraisal. The lender uses the appraiser's rent schedule, not what you think the unit will rent for.
If that rent schedule comes in low, your DSCR drops — and your rate goes up. Know the comparable rents in Lemon Grove before you lock in a purchase price.
Bank statement loans look at your deposits. Hard money focuses on the asset. DSCR looks at neither — it lives or dies on the rent-to-payment ratio.
For buy-and-hold investors with multiple properties, DSCR keeps your personal debt-to-income ratio clean. That matters when you're scaling a portfolio.
Lemon Grove's rental market benefits from proximity to major employment corridors and transit access across San Diego County. Tenants here tend to stay.
Investors eyeing multi-unit properties should note that DSCR lenders treat 2–4 unit properties differently from 5+. Know which bucket your deal falls into before applying.
Most lenders use the appraiser's market rent estimate. Actual signed leases help, but projected rent from the appraisal is what drives approval.
Yes. Most DSCR lenders allow LLC vesting. It's one reason investors prefer this product over conventional financing.
Some lenders offer sub-1.0 DSCR products. Expect a higher rate and a larger down payment requirement.
Limits vary by lender. Many allow 10 or more financed properties. This is a key advantage over conventional Fannie Mae guidelines.
Some lenders accept Airbnb or VRBO income, but documentation requirements are stricter. Not all DSCR programs treat it the same way.
With clean documentation, 21–30 days is realistic. The appraisal with rent schedule is usually the longest part of the process.