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San Diego's investment market is shifting. Rental income now matters more than personal income — that's where DSCR loans come in. Investors buying rental properties here need proof that the property itself will cover the mortgage, not just their W-2s.
The county's median household income sits at $102,285, but investment property buyers operate differently. A single-family rental or multi-unit building must generate enough monthly rent to support the loan.
620–640
Minimum FICO
20–25%
Typical Down Payment
Property rent only
Income Verification
30–45 days
Closing Timeline
$1,104,000
2026 Conforming Limit
DSCR Loans in San Diego
DSCR loans require a minimum FICO score of 620 to 640, depending on the lender. Down payments typically start at 20% and go up to 25% for standard DSCR programs.
San Diego County's median household income of $102,285 tells you what a typical owner-occupant can afford. Investment buyers operate on a different metric entirely — the property's monthly rent.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in San Diego.
San Diego's investment market is shifting. Rental income now matters more than personal income — that's where DSCR loans come in. Investors buying rental properties here need proof that the property itself will cover the mortgage, not just their W-2s.
The county's median household income sits at $102,285, but investment property buyers operate differently. A single-family rental or multi-unit building must generate enough monthly rent to support the loan.
DSCR loans require a minimum FICO score of 620 to 640, depending on the lender. Down payments typically start at 20% and go up to 25% for standard DSCR programs.
DSCR lending in California has expanded significantly. Banks and mortgage companies now compete on rates, terms, and documentation flexibility.
Closing timelines for DSCR loans typically run 30–45 days. Underwriting is faster than conventional because the lender focuses on the property's financials, not your personal tax returns.
DSCR loans make sense in San Diego when you're buying a rental property and your personal income is irregular or low. Self-employed investors, real estate professionals, and W-2 earners with minimal documented income all benefit.
DSCR loans don't make sense if you're buying a primary residence. Owner-occupants should use conventional, FHA, or VA loans. DSCR is built for investors.
Conventional loans require full personal income documentation and typically demand 20% down. DSCR loans skip the income verification and focus on the property's rental income instead.
The tradeoff: DSCR rates run higher than conventional because the lender carries more risk on a property-only cash-flow model. You'll also need a higher FICO floor (620–640 vs. 620 for conventional).
San Diego's rental market remains competitive. Single-family homes and small multi-units attract investors because the rent-to-price ratio is favorable compared to other California coastal cities.
The county's population of 3.28 million creates steady tenant demand. Neighborhoods from North County to South Bay support rental portfolios.
DSCR stands for Debt Service Coverage Ratio — the property's monthly rent divided by the monthly loan payment. Investors use DSCR loans to buy rental properties when personal income is low or irregular.
No. DSCR loans skip personal income verification entirely. The lender reviews the property's rental history, lease agreements, and sometimes bank statements to verify cash flow. Your day job doesn't matter — only the property's rent does.
Typically 20% to 25%. Some lenders offer 15% down with higher FICO scores and strong cash flow. The exact minimum depends on the property type, DSCR ratio, and your credit score.
Most DSCR lenders require 620 to 640 FICO. Some lenders go lower with compensating factors like higher down payment or strong reserves. Call for your specific lender's floor — it varies.
No-ratio financing is available. The lender approves even if rent falls short, but you'll need reserves or other assets to support the gap. Rates and down payments are higher because the lender carries more risk.