Call Independent Lending 949.830.3151
California DSCR Loans are the ideal investment property program to cash out or purchase your next rental property. Cash flow is used instead of personal financials for calculating income making this loan program tailored for investors, self-employed individuals and holders of large portfolios. Call us today to learn more about this exciting rental cash flow program.
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Faster Closing Times
Unlimited Cash Out
No Personal Income Requirements
No Employment History Verification
LLC and Other Entities Allowed
Your Trusted California DSCR Specialist
Started in 2013, Independent Lending has years of experience in providing California DSCR Loans, which are becoming a popular solution for investment properties in the state of California. With cash flow replacing personal income and job history requirements for underwriting approval, DSCR loan programs are here to stay.
With over $500 million in fundings since 2013, we offer 5-Star service, competitive rates and faster closing times for our California DSCR clients. Contact us today to speak with one of our California licensed Mortgage Advisors.
- Faster Funding Times
- Purchase or Cash Out
- Flexible DSCR Solutions
- Short or Long-Term Rentals
- Vacant or Occupied Properties
- Full 30-year Terms with No Balloons
California
California is located in the Western United States with the Pacific Coast lining it’s shores. Oregon is located to the north and Arizona and Nevada to the east, south is an international border with Mexico. There are over 39 million residents with an area spanning approximately 164,000 square miles. The 3rd largest by area and the most populous U.S. state, California can be a good rental market due to higher than average rental demand and appreciation.
Debt Service Coverage Ratio Calculation Example
The following is an example of how the Underwriter might calculate a California DSCR loan
DSCR = Gross Rental Income / Monthly Debt
Subject Property: California Single Family Rental
Annual Gross Revenue: Property is renting for $3,500 per month with an annual gross revenue of $42,000
Operating Expenses: Principle, Interest, Taxes, Insurance and HOA add up to $2,900 per month with an annual operating expense of $34,800
Annual rent of $42,000 / Annual debt of $34,800 = 1.20
A DSCR of 1.20 indicates that the property generates over 20% more income than is needed to cover the debt service. A DSCR above 1.0 suggests that the property has strong cash flow position and should be able to comfortably handle the new loan.
Most California DSCR lenders require a DSCR of 1.0 or higher. With Independent Lending we can go lower with compensating factors. Call us at 1.800.315.0043 to learn more about qualifying for your California DSCR loan.
Common California DSCR Questions
A: Each month, the interest is added to your loan balance. You only repay the loan when you sell the house or when the loan becomes due (such as after you pass away).
A: The acronym DSCR stands for Debt Service Coverage Ratio. A DSCR loan is a Non-QM or Investor Cash Flow loan program used by California property investors allowing them to purchase or cash out of their rental property. This loan type focuses on the cash flow generated by the rental property rather than by the personal income of the borrower.
A: Yes, typically other DSCR providers require a credit score of 620+ however with compensating factors, we can go down to 575 scores.
A: Yes, the Underwriter will look at this scenario on a case by case basis. Typically if the subject property was recently remodeled or purchased an exception can be requested.
A: Yes, minimum down payment is usually 20% depending on other factors such as property type and credit score.
A: To begin the process of obtaining your California DSCR Loan you can call us direct at 949.216.3902 or toll free at 1.800.315.0043. You can also complete our Contact Form or fill out our secure one page Application Form.
How a California DSCR Loan Can Grow Your Portfolio
For California real estate investors looking to qualify based on cash flow and bypass the traditional underwriting of personal financials, non-QM loans like California DSCR loans are the ‘go to’ alternative. These loan programs offer protection and privacy by allowing to close in a LLC or entity. DSCR loans also offer flexible financing in terms of interest rates, repayment structures and loan amounts to help investors meet their investment target goals.
- Unlimited Property Portfolio
- Less Documentation Required
- Rental Property Focused Lending
- Flexible Common Sense Undwriting
- Rental Cash Flow Not Personal Income
- Quick and Streamlined Underwriting Approval
About Our Mortgage Lending and Service
What Our Clients Have To Say
Recently Funded California DSCR Loan
Real World Scenario
$327,000 Cloverdale DSCR Rental Loan for a cash out refinance. We were able to close for this Investor in less than 2 weeks on a lower rate that he had secured from a private money lender. LTV of 60% with 2 years of guaranteed interest. This property provides tremendous cash flow, with a 2.8 DSCR ratio.
Learn More About a California DSCR Loan
Contact Independent Lending
Call Toll Free: 1.800.315.0043 / Local: 949.830.3151 or click the Contact Us button to fill out our secure web form for a call back. At Independent Lending, we give every loan request the respect it deserves.
