Question 1

What is the minimum DSCR required for a rental loan in California?

Accepted Answer

1.2 DSCR is the standard minimum for California rental loans, with 680+ FICO and 20–25% down. Some lenders allow 1.0–1.19 DSCR with compensating factors: 740+ credit score or 25–30% down. Below 1.0 DSCR is declined.

Question 2

Do California DSCR loans require tax returns?

Accepted Answer

No. DSCR loans in California qualify you based on the property's rental income only. No personal or business tax returns, W-2s, pay stubs, or 1099s are required. See the full requirements on our DSCR hub page.

Question 3

Can I use Airbnb or vacation rental income to qualify in California?

Accepted Answer

Yes. We use the greater of your 12-month gross Airbnb/VRBO payouts or an AirDNA market STR analysis, provided the property is legally rentable as a short-term rental under California and local ordinances. STRs often hit 1.6+ DSCR due to higher nightly rates.

Question 4

What credit score do I need for a DSCR loan in California?

Accepted Answer

680+ FICO is the standard minimum for California DSCR loans. 640–679 may qualify by exception with lower LTV (65–70%) or higher DSCR (1.25+). We pull a tri-merge credit report but do not calculate DTI, so credit card balances and car loans are ignored.

Question 5

How fast can a DSCR loan close in California?

Accepted Answer

California purchase DSCR loans typically close in 21–30 days. Cash-out refinances close in 14–21 days once the appraisal and title are complete. Closings in rent-controlled jurisdictions may add 3–5 days for lease verification.

Question 6

Can an LLC get a DSCR loan in California?

Accepted Answer

Yes. LLCs and corporations registered in California (or any state, with foreign entity registration where required) can take title to DSCR loans. All 25%+ members must provide a personal guarantee and credit check. This keeps the loan off your personal credit.

Question 7

Does California rent control affect DSCR qualification?

Accepted Answer

Yes. In rent-controlled units, we use the current legal rent (not market rent) to calculate DSCR. If the legal rent sits below market, it may lower your DSCR and require more down payment. For vacant properties, a market rent analysis can still apply. California's statewide AB 1482 caps annual rent increases at 5% + CPI (≤10%) for most buildings ≥15 years old. Some cities (LA, SF, Oakland, San Jose) have stricter local rent control that can affect DSCR calculations.

Question 8

What metros are best for DSCR investing in California?

Accepted Answer

California's top DSCR investing metros are Los Angeles, San Diego, San Francisco, Sacramento. Los Angeles is the deepest market with median home prices around $935K and 3.5–4.5% gross rental yields. Higher-yield alternatives like Sacramento (5.0–6.0%) trade lower entry price for thinner deal flow.

Question 9

Which lenders fund DSCR loans in California?

Accepted Answer

Non-bank DSCR programs that frequently fund California deals include Visio Lending, CoreVest, LendingOne, Velocity Mortgage Capital, Kiavi. PeerSense matches your scenario across this lender set rather than locking you into a single program — terms vary by FICO, LTV, DSCR, property type, and entity structure.

Question 10

What is the DSCR loan rate in California?

Accepted Answer

California DSCR refinance rates start at 6.25% as of May 2026 with a typical state-specific adjustment of +0.125% to +0.250% versus national baseline pricing. Tenant-protection regulations and judicial foreclosure increase lender loss-severity assumptions; jumbo pricing dominates given $700K+ medians. Final pricing depends on FICO, LTV, DSCR, and property type.

Question 11

How long do evictions take in California?

Accepted Answer

California non-payment evictions typically run 60–120+ days from notice to keys. California is one of the slowest eviction states. AB 1482 just-cause requirements, mandatory pre-filing notices, and crowded courts in LA/SF push timelines past 90 days. Allow 4–6 months from notice to keys. DSCR underwriters factor this into reserve and loss-severity assumptions.

Metro	Median Price	Gross Yield	DSCR Investor Notes
Los Angeles	$935K	3.5–4.5%	RSO rent control, Costa-Hawkins exempt new construction qualifies at market rent
San Diego	$895K	3.5–4.5%	Coastal premium, military rental demand, no city-level rent control beyond AB 1482
San Francisco	$1185K	2.5–4.0%	Strict 1979-and-older rent control, lowest gross yields in CA, jumbo pricing
Sacramento	$525K	5.0–6.0%	Inland CA cap-rate play, Sacramento ordinance caps rent at CPI + 5% (≤10%)

Requirement	Minimum	Notes
DSCR	1.20	1.00+ allowed with 740 FICO or 30% down
Credit Score	680 FICO	640–679 by exception, lower LTV
Down Payment	20–25%	25% if <1.2 DSCR or <700 FICO
Property Type	1–4 units or multifamily	Condos, townhomes, STRs OK where legal
Income Docs	None	No tax returns, W-2s, DTI check
Reserves	6 months PITIA	Checking, savings, stocks qualify
Close Time	21–30 days	Cash-out refi: 14–21 days

California DSCR Loans: No Tax Returns, 1.2 DSCR Min, Rates from 6.25%

Can I get a DSCR rental loan in California?

California Rental Market Snapshot

Major California Markets We Fund

California Eviction Timeline & Landlord Posture

California Rate Adjustment vs National Baseline

DSCR Lenders Active in California

California DSCR Loan Requirements

Get California DSCR Loan Terms

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