DSCR Loans for California Real Estate Investors
Qualify for DSCR investment property loans based on rental income, not personal income. Aditya Choksi specializes in debt service coverage ratio loans for California real estate investors looking to grow their portfolio without income verification.
DSCR Calculator
What Are DSCR Loans and Why Do Investors Use Them?
DSCR (Debt Service Coverage Ratio) loans qualify investors based on rental income rather than personal income. If the property's rent covers the mortgage payment (DSCR of 1.0+), you can qualify without tax returns, W-2s, or employment verification.
DSCR loans revolutionize investment property financing by focusing on the property's income potential rather than your personal financial situation.
No Income Verification
Qualify based on property's rental income potential, not your personal income or tax returns
Cash Flow Focused
Lenders evaluate the property's debt service coverage ratio (DSCR) to determine loan approval
Fast Approval Process
Streamlined underwriting without employment verification or extensive income documentation
Multiple Property Types
Finance single-family, multi-family, condos, and commercial investment properties
Competitive Rates
Attractive rates for investment properties with DSCR ratios of 1.0 or higher
Portfolio Growth
Perfect for building your real estate investment portfolio without income limitations
How Is the Debt Service Coverage Ratio Calculated?
DSCR = Monthly Rent ÷ Monthly Mortgage Payment (PITIA). A DSCR of 1.0 means rent exactly covers the payment. Most lenders require 1.0-1.25 DSCR. Example: $3,000 rent ÷ $2,500 payment = 1.20 DSCR (qualifies).
Understanding the debt service coverage ratio and how it determines your loan approval.
DSCR Formula
A DSCR of 1.25 means the property generates 25% more income than needed to cover the debt payment, providing a strong safety margin for lenders.
DSCR 1.25+ (Excellent)
Property generates 25%+ more income than debt service
DSCR 1.10-1.24 (Good)
Property generates 10-24% more income than debt service
DSCR 1.0-1.09 (Acceptable)
Property income covers debt service with minimal cushion
DSCR Below 1.0 (Risk)
Property income doesn't cover debt service - negative cash flow
Who Qualifies for DSCR Loans in California?
DSCR loans work for self-employed investors, portfolio builders with 5+ properties, foreign nationals, retirees with limited W-2 income, and anyone wanting to qualify based on property income rather than personal tax returns.
DSCR loans are ideal for investors who want to scale their portfolio without personal income limitations.
Experienced Investors
Portfolio owners looking to expand their holdings without personal income scrutiny
High Net Worth Individuals
Investors with complex tax situations who prefer asset-based lending
Self-Employed Entrepreneurs
Business owners who write off significant expenses reducing reportable income
Real Estate Professionals
Agents and brokers looking to build their own investment portfolio
Foreign Nationals
International investors without U.S. credit history or income documentation
New Real Estate Investors
First-time investors with good credit but limited rental property experience
DSCR Loan Programs
Choose the DSCR program that matches your investment strategy and property performance.
Standard DSCR
Best rates for properties with strong cash flow coverage
Get RatesLow DSCR
For properties with break-even or minimal cash flow
Get RatesNo DSCR
Asset-based lending for unique investment opportunities
Get RatesHot California Investment Markets
Strategic markets where DSCR loans are helping investors build wealth through real estate.
Los Angeles County
High ActivityOrange County
High ActivityRiverside County
Very High ActivitySan Bernardino County
High ActivityWhat Are the Requirements for DSCR Loans?
DSCR loans require minimum 620-680 credit score, 20-25% down payment, DSCR of 1.0+ (some programs allow 0.75), and the property must be investment-only (not owner-occupied). No tax returns, W-2s, or employment verification needed.
DSCR loans have specific requirements focused on the investment property's ability to generate sufficient rental income to cover debt service.
Investment Pro Tip
Properties with long-term leases in place and experienced property management often qualify for better rates and terms.
Get Your DSCR Loan Quote
Qualified for investment properties in 24-48 hours
DSCR Loan Process Timeline
Our streamlined DSCR process gets investors to closing faster than traditional investment property loans.
Days 1-3
Application & Property Analysis
Submit application, property details, and rent roll documentation
Days 3-7
DSCR Calculation & Pre-Approval
We analyze rental income and calculate DSCR ratio for pre-approval
Days 7-14
Appraisal & Underwriting
Property appraisal and specialized DSCR underwriting review
Days 14-21
Closing
Close on your investment property and start building wealth
Frequently Asked Questions
Everything you need to know about DSCR loans for California real estate investors.
Educational Information & Disclaimer
Information on this page is for educational purposes only and is not an offer of credit. DSCR loans are investment property loans where approval is based on rental income. Actual loan approval, terms, interest rates, and DSCR requirements depend on your property, credit profile, down payment, and overall investment strategy. Programs, rates, and guidelines are subject to change without notice. For personalized advice and current DSCR loan rates, consult with a licensed California mortgage professional specializing in investment property financing.
Ready to Scale Your Investment Portfolio?
Join numerous California real estate investors who've used DSCR loans to build wealth. Get pre-approved based on property cash flow, not personal income.
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Licensing & Regulatory Information
Company: 21st Century Lending, Inc. | NMLS Company ID: 241835
Licensed Loan Originator: Aditya Choksi | NMLS ID: 2055084 | DRE License: 02154132
Licensed by the California Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Also licensed in Arizona, Colorado, Georgia, New Mexico, and Washington.
This is not a commitment to lend. Loan approval subject to credit approval and property appraisal. All loans subject to underwriting approval. Rates, terms, and programs subject to change without notice. Not all applicants will qualify. Not all products and services are available in all states.