Question 1

What DSCR ratio do I need to qualify in San Diego?

Accepted Answer

Most lenders require a 1.0x ratio — rent must cover the full payment. Some allow 0.75x with a higher down payment.

Question 2

Can I use a DSCR loan to buy a short-term rental?

Accepted Answer

Yes, but lender rules vary. Some use market rent, not actual Airbnb income. Confirm the lender's method before submitting.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

No. That's the point. Lenders qualify you on the property's income, not yours.

Question 4

Can I close in an LLC with a DSCR loan?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. It's one reason investors prefer this product over conventional financing.

Question 5

How much do I need to put down on a DSCR loan?

Accepted Answer

Plan on 20-25% down. Some lenders go to 15% with strong credit and a high DSCR ratio.

Question 6

Are DSCR rates higher than conventional rates?

Accepted Answer

Yes, typically. DSCR is non-QM, so rates run higher than conventional investor loans. Rates vary by borrower profile and market conditions.

DSCR Loans in San Diego: Qualify on Rental Income