Rental financing underwritten on what the property collects, not on what your tax returns show. I work with investors buying and refinancing across Orange County and the rest of California.
Tax returns stay out of it. A DSCR lender weighs the rent a property brings in against the payment on the loan, which suits self-employed investors, owners of several doors already, and anyone whose write-offs make the income look thinner than it is. I shop these files to the slice of my 150-plus lender network that prices this product well.
- DSCR ratio of 1.0 or higher typically required (some lenders offer below-1.0 programs); ratio = gross rental income / PITIA
- Property must be non-owner-occupied (investment use only)
- Eligible property types typically include 1–4 unit residential, condominiums, and short-term rentals (Airbnb/VRBO)
- Credit score minimums vary by lender — generally 640+ for standard programs
- Down payment typically 20–25% of the purchase price or appraised value
- Entity (LLC) ownership allowed with many lenders
Frequently Asked Questions
Take the monthly rent the property brings in and divide it by the monthly payment, meaning principal, interest, taxes, insurance and any HOA dues. Rent of $3,000 against a payment of $2,500 gives a ratio of 1.20. Every lender sets its own minimum.
Some lenders will, using a market rent estimate or a 12-month history from your booking platform. Others count only long-term rent. I check which is which before we pick where the file goes.
Yes. Vesting title in an LLC is common on this product. Bring the operating agreement and articles of organization, and plan on most lenders asking the members for a personal guarantee.