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DSCR Loan California - February 2024


Last updated: February 6, 2024


So you're looking for a DSCR loan for your California rental property? Whether it's a purchase or a refinance, we are here to provide you with the most competitive terms, and valuable insights to help you on your real estate investing journey. DSCR loan interest rates are down 1% over the past 90 days, a lower rate means higher DSCR and that means you qualify for a higher loan...


If you're like many California rental property investors, you may be facing challenges structuring your purchase or refi transactions. Elevated interest rates have made it difficult to cash flow at your target loan amount. There where working with an experienced DSCR lender comes in handy.


DSCR Loans California


California is an excellent market to invest in single family (1 to 4 unit) rental properties. Over the past year, rents have increased by 12.3% across the state with even stronger growth in core markets:


City Average Rent (Two-bedroom) Rent Growth (Two-bedroom)
San Francisco $3,600 16.9%
San Jose $3,300 15.9%
Los Angeles $3,000 14.8%
Oakland $2,700 13.4%
San Diego $2,400 12.9%

DSCR Loan Guidelines


Guidelines Criteria
Max Loan Amount 80% of purchase price (20% down payment), 80% rate and term refi, 75% cash out refi
Min credit Score 660 (720+ for best terms)
Min seasoning No seasoning or 3 months depending on experience, loan amount
Appraisal On-site (As Is 1004/1007 for single family, As Is 1025 for 2-4 units)
Credit report Tri merge
Property location Non-rural

DSCR Loan Fees


Fee type Expected range
Interest Rate Get instant quote
Origination fee 1% to 2% of loan amount
Underwriting fee $0 to $995
Legal/Doc Prep fee $500 to $995
Appraisal Market rate

DSCR Loan vs Bank Loan


As banks have struggled to adjust to the current elevated interest rate environment, DSCR loans have become the most attractive source of financing for your rental property. The DSCR loan market is healthy, with strong demand from institutional credit investors who buy DSCR loans directly from OfferMarket and through securitizations. DSCR loan interest rates are currently lower than the prime rate offered by banks.


How to calculate DSCR


Use our DSCR Calculator to calculate DSCR, monthly cash flow and cash to close or cash out for your next transaction.


Best DSCR Lenders California


The best DSCR lenders in California are able to provide the lowest possible interest rate and the lowest possible fees on every quote. Many DSCR lenders do not provide you with their best term sheet, especially with current economic conditions where costs have increased and transaction volume has decreased. Further, many DSCR lenders go through periods of time where their quoted rates are uncompetitive or they are not able to originate new loans because they are stuck with loans on their balance sheet that have lost value due to sudden increases in interest rates.


OfferMarket is the most advanced DSCR lender because we work with a growing number of institutional investors who compete to buy our DSCR loans. We provide you with the most competitive terms based on your specific deal and your specific borrower profile.


How to get a DSCR Loan


Get your instant DSCR loan quote right now! In under a minute, you will have your preliminary term sheet and pre-approval letter.


Setting correct expectations is important to us: your instant quote is designed to be conservative. In many cases we can actually offer a lower interest rate, higher loan amount and lower fees. Be sure to submit your loan request so a member of our team can review and confirm the best available terms based on your specific deal and borrower profile. There's no obligation, no credit pull and no sensitive information requested. From there you can process your loan online and schedule a call with your dedicated relationship manager.


We look forward to meeting you and helping you build wealth through real estate.


DSCR calculator (Will it cash flow?)