DSCR Loans California
Source Capital offers asset-based DSCR loans in California. Rates starting at 8.99% with fast approvals.
- Direct Private Lender
- 1.0 Minimum DSCR
- Fast Approvals & Funding
Why Source Capital for DSCR Lending in California
Source Capital provides DSCR loans in California for real estate investors seeking financing based on a property’s rental income rather than personal income. As a direct private lender, we offer fast decisions, flexible underwriting, and streamlined funding for qualifying investment properties.
- Loan amounts from $100,000 to $5,000,000 with competitive rates
- Qualification based primarily on property cash flow and debt service coverage
- Fast approvals from an A+ BBB Accredited direct private lender
DSCR Loan Highlights
Cash Flow Qualification
Qualify based primarily on your property's rental income instead of your personal income.
Investment Properties
Finance eligible residential investment properties, including single-family rentals and multifamily assets.
Competitive Financing
Access loan amounts from $100,000 to $5,000,000 with competitive rates and flexible terms.
Fast Closings
Receive streamlined approvals and funding designed to help you capitalize on investment opportunities quickly.
How DSCR Loans Work in California
A DSCR (Debt Service Coverage Ratio) loan is a real estate investment loan that qualifies borrowers primarily on a property’s rental income rather than personal income. Lenders compare the property’s cash flow to its debt obligations to determine whether it can support the monthly loan payments.
- Designed for investors purchasing or refinancing income-producing residential properties
- Qualification is based largely on rental income, property performance, and overall loan structure rather than traditional income documentation
What Are DSCR Loans Used for In California
Purchasing Rental Properties
Use California DSCR loans to acquire single-family rentals, multifamily properties, and other qualifying income-producing real estate.
Refinancing Investment Properties
Replace an existing loan with financing based on your property's rental income and cash flow.
Property Improvements
Access capital to renovate or upgrade qualifying rental properties and increase their long-term value.
Portfolio Growth
Expand your real estate portfolio by financing additional investment properties without relying primarily on personal income.
Cash-Out Refinancing
Leverage existing equity in a qualifying investment property to fund future real estate purchases or other business opportunities.
Long-Term Rental Investments
Secure financing for properties intended to generate consistent rental income and long-term returns.
What California Borrowers Say About Us
How to Qualify for a DSCR Loan in California
Qualifying for a DSCR loan in California typically depends on your property’s ability to generate enough rental income to cover its debt obligations. Source Capital evaluates the property’s cash flow, overall loan structure, and other qualifying factors to determine eligibility.
- Own or Purchase an Investment Property: The property must be a qualifying income-producing real estate investment.
- Demonstrate Rental Income: Source Capital reviews your projected or existing rental income to calculate the debt service coverage ratio.
- Meet Loan Guidelines: Property value, equity, and the overall financing structure are evaluated during underwriting.
- Apply Online: Complete our Apply Now process to determine your eligibility and receive a financing decision.
Benefits of DSCR Loans in California
Flexible Financing
We provide flexible DSCR loans throughout California, helping real estate investors finance income-producing properties with streamlined underwriting.
Competitive Rates
We offer competitive rates starting at 8.99% for qualifying California investment properties, with terms based on the property's cash flow and loan structure.
Proven Success
We're an A+ BBB Accredited direct private lender committed to ethical lending practices, responsive service, and efficient funding.
Strong Brand Recognition
We're a trusted California lender with features in Business Insider, MSN, and Realtor, serving investors across the state's major real estate markets.
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California DSCR Loan Rates
|
Interest Rates |
8.99% – 11.99% (1st Position)
11.99% – 13.99% (2nd Position) |
|
Loan Amounts |
$100,000 – $5,000,000 |
|
Loan Duration |
12-24 months |
|
Closing Timeframe |
10 business days or less |
|
LTV ratios |
Up to 70% LTV (1st Position)
Up to 60% LTV (2nd Position) |
|
Prepayment Penalty |
None |
|
Appraisal Fee |
None |
|
Credit Score |
No minimum |
|
Property Types |
Non-owner-occupied (multifamily, industrial, office, retail, and mixed-use) |
|
Origination Fee details |
Starting from 2.0% of loan amount (varies by size & term length) |
Cities We Serve in California
- Anaheim
- Bakersfield
- Fresno
- Long Beach
- Los Angeles
- Modesto
- Oakland
- Orange County
- Palm Springs
- Redding
- Richmond
- Riverside
- Sacramento
- San Diego
- San Francisco
- San Jose
- Santa Ana
- Santa Barbara
- Santa Rosa
- Stockton
- …and More
As Featured In
Testimonials
“Smooth and fast transaction as the loan was funded in 8 days. They are a pleasure to work with – Strongly Recommended.”
Borna Eftekari
- Agent, Farmers Insurance
“They are always so patient, helpful, and professional. and have helped me so much! This can be such a stressful process, but they make it all so easy.”
Lauren Marcus
- Client
“I have always had a highly professional and honest experience with everyone on their team and would recommend to anyone looking for financing.”
Andrew Bellah
- Owner, The Bellah Group
“Highly recommend Source Capital Funding if you need money fast and you value efficiency. I will go back to them again if I need funding in the future.”
Kendall Heath
- Client
“They were very responsive and extremely helpful and would certainly use them again. I highly recommend their services.”
Alvin Fuchs
- Agent, Keller Williams Realty
“In all my years, I can confidently say they are the most professional, prompt, courteous, and efficient private lender I have ever worked with!”
Greg Shields
- Owner, GSI Appraisals
“Source Capital has been an absolute pleasure to work with throughout. These guys are on top of their game.”
Tyler Hanson
- Associate Broker, Cushman & Wakefield
“The team at Source are consummate professionals who work efficiently and effectively. Simply stated- truly exemplary and professional people”
Paul Elam
- Owner, San Diego’s Real Estate
“The team at Source Capital Funding was fantastic. Their professionalism, speed and solid loan terms is why I will be coming back to close more business with them.”
Sergio Abbud
- Senior Loan Officer, Better Rate Mortgage
“Recently completed another flawless transaction with Source Capital. Why would anyone want to go anywhere else? They’re the best.”
Marianne Bordogna
- Agent, Keller Williams Realty
Recently Funded Transactions
DSCR Loan Resources for California Borrowers
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Hard money loans are designed to provide fast, asset-based financing for two main reasons: for
Get prequalified today
Frequently Asked Questions about California DSCR Loans
What are typical fees for DSCR loans in California?
Typical DSCR loan fees in California may include origination fees, closing costs, and other lender-related expenses. Costs vary based on the loan amount, property type, leverage, and overall financing structure, so borrowers should review all terms before closing.
What are the eligibility requirements for a California DSCR loan?
California DSCR loan requirements typically focus on the property’s rental income, debt coverage ratio, value, and investment potential. Borrowers generally need a qualifying income-producing property and a clear financing structure.
How do DSCR loans compare to traditional bank loans in California?
DSCR loans often provide more flexible qualification options than traditional bank loans by focusing on property cash flow instead of personal income. This can make them useful for real estate investors growing their rental portfolios.
What types of properties qualify for DSCR lending in California?
DSCR loans may be used for qualifying rental properties, including single-family homes, multifamily properties, and other residential investment assets. Eligibility depends on the property type, income potential, and loan guidelines.
How fast can Source Capital fund a DSCR loan in California?
Source Capital provides streamlined DSCR loan approvals and funding timelines for qualified investment properties. The exact timeframe depends on documentation, property details, and the complexity of the transaction. You can apply online to check eligibility.