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San Diego County added more low-income rental units last year than in nearly 40 years. That construction boom signals strong investor appetite for rental properties across the region.
DSCR loans let investors qualify on the property's income, not personal income. This matters when your rental revenue outpaces your W-2 earnings or when scaling a portfolio quickly.
680
Minimum FICO
20-25%
Down Payment Range
1.0 or higher
DSCR Ratio Required
30-45 days
Typical Closing
DSCR Loans in Solana Beach
DSCR loans typically require 20% to 25% down and a FICO score of 680 or higher. The property's debt-service coverage ratio must usually hit 1.0 or above to qualify.
San Diego County's median household income of $102,285 reflects the region's cost of living. For DSCR borrowers, the property's cash flow matters more than personal income.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Solana Beach.
San Diego County added more low-income rental units last year than in nearly 40 years. That construction boom signals strong investor appetite for rental properties across the region.
DSCR loans let investors qualify on the property's income, not personal income. This matters when your rental revenue outpaces your W-2 earnings or when scaling a portfolio quickly.
DSCR loans typically require 20% to 25% down and a FICO score of 680 or higher. The property's debt-service coverage ratio must usually hit 1.0 or above to qualify.
DSCR loans are specialized products offered by a smaller set of lenders than conventional mortgages. Most require the property to be a single-family rental, duplex, or small multifamily.
Underwriting focuses on the property's lease agreement and rent history. Lenders want to see 2 years of rental history or a signed lease at market rate.
DSCR loans make sense when you're buying a rental property with strong cash flow but limited W-2 income. If the property's annual rent exceeds the annual mortgage payment by 20% or more, DSCR often closes faster.
They don't work for owner-occupied homes or properties with weak rental history. If you're buying a primary residence, a conventional loan is the right tool.
A conventional rental loan requires 2 years of personal tax returns and caps rental income credit at 75%. DSCR loans use the full lease amount, so strong rent can qualify you for more borrowing power.
Conventional loans typically offer lower rates because the lender has more personal-income documentation. DSCR rates run higher—usually 0.5% to 1% above conventional—because the lender relies solely on property cash flow.
San Diego is seeking delays to state law requiring high-rise housing near transit stops. That regulatory uncertainty may slow multifamily development, which could tighten rental supply.
Solana Beach's coastal location and school district draw long-term renters. Properties here often command premium rents, which strengthens the DSCR ratio.
Most lenders require 20% to 25% down on DSCR loans. A few offer 15% down at a higher rate.
Yes — most lenders require either a 2-year lease history or a signed lease at market rate. A signed lease from a qualified tenant works.
No. DSCR loans are for investment properties only. For a home to live in, use conventional or FHA.
Typically 30 to 45 days. DSCR closings are often faster than conventional rental loans because underwriting focuses on the lease.
Most lenders require a 680 FICO minimum. Some go as low as 660, but a 700+ score gets better pricing.