CambridgeHomeLoan.com California DSCR Loans – Up to 85% LTV·Rates from 5.75%·No Credit Pull to Quote
California DSCR Lender · Direct Lender Since 1998 · NMLS #1826020

California DSCR Loans

California prices are high and rents do not always keep up, which is exactly where a flexible DSCR lender matters. We qualify your rental on the property’s income, not your tax returns, and our 0.75x DSCR floor gives high-price, thin-margin deals room that stricter lenders will not. Up to 85% LTV on purchase and rates from 5.75%, with Prop 13 taxes, Mello-Roos charges and real insurance costs built in from the start.

  • 0.75x DSCR floor with reserves, built for California’s price-to-rent reality
  • Up to 85% LTV on purchase · FICO from 620
  • Single-family, condos, 2-4 units & permitted ADUs considered
  • Short-term rentals may qualify where local rules allow and income is documented
  • Close in 14 days · no-seasoning cash-out · LLC, foreign nationals & first-time investors welcome
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  • Tell us about the propertyAddress, monthly rent (lease or short-term) and price or value.
  • See your DSCRProjected taxes, insurance and any special charges included.
  • Close as fast as 14 daysStreamlined processing, no personal income documents.
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0.75xDSCR Floor
85%Max LTV (Purchase)
5.75%Rates From
620+FICO Accepted
14 DaysClose
No PullTo Quote

California DSCR Loans at a Glance

  • Approval basis: Rent against the full monthly payment. No W-2s, pay stubs or tax returns.
  • DSCR floor: 0.75x with reserves, a practical fit where purchase prices are high relative to rent.
  • Leverage: Up to 85% LTV on purchase; as little as 15% down.
  • Credit: FICO from 620.
  • Rates: From 5.75% for the strongest profiles.
  • Properties: Single-family, condos, townhomes, 2-4 units, mixed-use and permitted ADUs.
  • Rental income: Lease, appraiser’s market rent, or documented short-term-rental earnings where allowed.
  • Cash-out: No-seasoning options, with no waiting period.
  • Borrowers: Individuals, LLCs and entities; foreign nationals and first-time investors welcome.
  • Closing: As little as 14 days, coordinated with your escrow and title company.
  • Quote: Free, no credit pull needed.
  • Lender: CambridgeHomeLoan.com, direct lender since 1998 (NMLS #1826020).

DSCR financing

How DSCR loans work for California investors

A debt service coverage ratio loan focuses on the property instead of the borrower’s paycheck. The lender asks whether rent is enough to pay the mortgage, taxes, insurance and association charges. That approach suits self-employed investors, owners with large business write-offs, retirees, overseas buyers, and anyone expanding a portfolio faster than conventional underwriting permits.

DSCR = Effective monthly rent ÷ Monthly PITIAPITIA = principal, interest, property taxes, insurance and association or special-tax charges (HOA, Mello-Roos), if any.

A ratio of 1.00x means rent matches the payment. Many DSCR lenders will not go below that, and some want 1.15x to 1.25x. California changes the picture: purchase prices can be so high compared with rent that many good properties land below 1.0x. We can consider deals down to 0.75x with reserves, so a well-located property is not ruled out by arithmetic alone.

A worked example

A California single-family rental in an inland market rents for $3,100 a month. After a 5% vacancy allowance, effective rent is about $2,945. The full monthly payment (loan payment, taxes, insurance) is $3,400. DSCR = 2,945 ÷ 3,400 = 0.87x. That is below 1.0x, but it sits above our 0.75x floor, so the deal can still be considered with reserves.

Prop 13 and your purchase price

California generally assesses a property at its purchase price and taxes it at roughly 1% plus local bonds and assessments, with capped annual increases. The seller’s old tax bill is not a guide, so we project the tax for your purchase price.

Who uses DSCR loans

Self-employed buyers, owners with heavy deductions, retirees, foreign nationals and portfolio builders who have reached conventional limits. These are business-purpose loans for non-owner-occupied property only.

What you can skip

No pay stubs, W-2s, tax returns or employment verification. We focus on the rent, your credit profile, your down payment or equity, and your reserves.

DSCR floor0.75x, with reserves
LeverageUp to 85% LTV on purchase
CreditFICO from 620
RateFrom 5.75%
Rental incomeLease, appraiser’s market rent, or documented short-term-rental income where allowed
Property typesSingle-family, condos, townhomes, 2-4 units, mixed-use, permitted ADUs
SeasoningNo-seasoning options for purchase and cash-out refinance
BorrowerIndividual, LLC or entity · foreign nationals and first-time investors welcome
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What sets us apart

Underwriting that handles California’s extra layers

California deals carry costs and rules that rarely appear on a listing: a reassessed tax bill, Mello-Roos charges, earthquake or wildfire exposure, and rent limits that cap what a unit can earn. Underestimate any one of them and a marginal deal becomes a bad one.

So we start with the right numbers. We project the property tax for your purchase price, add any Mello-Roos or assessment charges, and work from an insurance quote that reflects the location, including wildfire and flood zones. We base rent on a lease or an appraiser’s market figure that respects local rent rules, and count permitted ADU income when the permits support it. For short-term rentals, we confirm that the city and any HOA allow them before counting a dollar of that income.

✓ Real costs counted✓ Rates from 5.75%✓ Up to 85% LTV✓ FICO 620+✓ No credit pull to quote✓ Close in 14 days
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Eligible properties

California rental properties we finance

From coastal condos to Central Valley single-family homes and small multifamily buildings, we consider each property on its income:

Single-Family Rentals

Detached homes rented long-term or short-term, qualified on the property’s rent.

Townhomes & Duplexes

Attached and paired homes in urban and suburban settings, popular with California rental investors.

Condos

Condo units reviewed together with the association’s dues, budget and documents.

2-4 Unit & Mixed-Use

Small multifamily and storefront-plus-apartment buildings, underwritten on combined rent.

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Programs

California DSCR loan programs

Pick the structure that matches your plan:

Purchase

Up to 85% LTV

Buy a rental qualified on its lease or an appraiser’s market rent, with room below 1.0x.

No-Seasoning Cash-Out

No waiting period

Access equity soon after purchase or renovation and redeploy it into your next property.

Short-Term Rental

Airbnb / Vrbo income

Use documented short-term earnings on eligible properties where the city and HOA permit them.

2-4 Unit & ADU

Combined rent

Duplexes through fourplexes and properties with permitted ADUs, qualified on total rental income.

Eligibility & requirements

California DSCR loan eligibility and requirements

We look at the borrower, the property and the deal. Final terms depend on the full file.

The borrower

  • FICO of 620 or higher; stronger credit earns better pricing
  • Individual, LLC, corporation or other entity
  • Foreign nationals and first-time investors welcome
  • ID, plus entity documents if closing in an LLC

The property

  • Non-owner-occupied, business-purpose investment property
  • Single-family, condo, townhome, 2-4 unit, mixed-use or permitted ADU
  • City rental registration or business license where required
  • Short-term rentals only where permitted and documented

The deal

  • DSCR of 0.75x or higher, with reserves
  • Up to 85% LTV on purchase
  • Purchase or no-seasoning cash-out refinance
  • Projected tax bill, insurance quote and any Mello-Roos or HOA charges
Down payment / equityAs little as 15% on a purchase (up to 85% LTV)
Credit620+ FICO accepted
DSCR0.75x floor with reserves; no personal income or employment verification
ReservesRequired; the amount depends on DSCR, leverage and credit profile and appears on your term sheet
Rent documentationLease or appraiser’s market rent; platform history or projection for short-term rentals; permits for ADUs
Local complianceCity rental registration, rent-control status and short-term-rental permits where applicable
Property documentsPurchase contract, insurance quote, projected tax figures, and HOA or Mello-Roos details where applicable
ClosingEscrow and title company
VestingIndividual, LLC or entity
Not eligiblePrimary residences and personal-use second homes

Requirements shown reflect our strongest profiles and may vary by property, borrower and market conditions.

Free tool

California DSCR calculator

Estimate your loan amount, payment and DSCR. Property tax, insurance and special charges are separate fields so you can see what drives your ratio. Illustrative only; your quote uses the property’s real figures.

Your property

Estimated loan amount–
Monthly principal & interest–
Total monthly payment (PITIA)–
DSCR–
Cash flow after debt (monthly)–
Get my real quote →

Illustrative only; not a commitment to lend. A DSCR of 1.00x or higher means rent covers the payment; 0.75x to 1.00x can still qualify with reserves. Excludes closing costs. Rate, tax and insurance values are examples.

How we compare

CambridgeHomeLoan vs. typical DSCR lenders in California

Many DSCR lenders require 1.0x or more, a bar that rules out many California properties on arithmetic. Here is how our program generally differs.

FeatureCambridgeHomeLoanTypical DSCR Lenders
DSCR floor0.75x, with reservesOften 1.0x-1.25x minimum
Costs in your DSCRProjected Prop 13 tax, insurance, HOA and Mello-RoosOften estimated or averaged
Quote processNo credit pull to quoteOften a credit pull upfront
Qualifying incomeLease, market rent or documented STR incomeOften long-term lease only
SeasoningNo-seasoning cash-out availableOften a 6-12 month wait
ADUs and 2-4 unitsConsidered on documented incomePolicies vary by lender
Time to closeAs fast as 14 daysOften 21-45+ days

Typical-lender column is a generic composite of commonly seen terms as of 2026, subject to change, and does not describe any specific lender.

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How it works

California DSCR loan process: six steps to funding

A single loan officer takes you through each stage.

1

Submit your application

Fill out our short application or call us. Provide the property address, price or value, expected rent (lease or short-term history), whether any ADU or extra unit exists, and whether you are buying or refinancing. No credit pull is needed for the first quote.

2

We review your application

Your loan officer reviews the scenario quickly and runs a preliminary DSCR. We flag anything to settle early, such as a rent-control question, a short-term-rental restriction, a special tax or an insurance concern.

3

We underwrite the deal

Underwriting confirms the details. We order the appraisal and rent schedule, project the tax bill for your purchase price, collect the insurance quote, confirm HOA or Mello-Roos charges, review entity and ID documents, and finalize your DSCR.

4

Deal sent to you for review

You receive the complete terms: rate, loan amount, leverage, DSCR, reserves, fees and closing costs. Your loan officer walks through each line so you can approve with confidence or adjust the structure.

5

Sign the deal

After you approve, final documents are issued. We coordinate with your escrow and title company, agent and any entity paperwork so signing and closing stay on schedule.

6

Funding

Once final conditions clear, the loan funds and you take ownership or receive cash-out proceeds. Many loans close in as little as 14 days, and we stay available for your next deal.

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Local markets

California DSCR loans by city

California is a collection of very different markets. A Los Angeles duplex, a Central Valley single-family home and a Palm Springs vacation rental face different taxes, insurance, rent rules and price-to-rent ratios. Below is a guide to 20 California cities we lend in, followed by how our DSCR program applies to each.

Los AngelesSan DiegoSan JoseSan FranciscoSacramentoFresnoLong BeachOaklandBakersfieldAnaheimRiversideIrvineStocktonPalm SpringsSanta BarbaraPasadenaSan BernardinoTemeculaModestoSanta Rosa

Los Angeles, California

Climate & population: Los Angeles has a Mediterranean climate, with warm, dry summers, mild winters and most rain between November and March. Santa Ana winds raise wildfire risk, and earthquakes are a constant consideration. The city has roughly 3.9 million residents, and the metro area is about 13 million.

Schools & colleges: UCLA, USC, Loyola Marymount University, California State University Los Angeles and the Los Angeles Community College District are based here. Public schools are run by the Los Angeles Unified School District, one of the largest in the country.

Major employers: The entertainment industry, the Port of Los Angeles, LAX, Kaiser Permanente, Cedars-Sinai, UCLA Health, City of Los Angeles government and a large technology and media sector are major employers.

Shopping & attractions: The Grove, the Beverly Center and Westfield Century City are leading shopping destinations. Attractions include the Hollywood Sign, Griffith Observatory, the Getty Center, Dodger Stadium and Venice Beach.

Communities & investment areas: Investors look at Silver Lake, Echo Park, Koreatown, Highland Park, Eagle Rock, Westwood and Studio City, among many distinct neighborhoods.

Real estate & rental market: Los Angeles has some of the nation’s highest prices and rents, along with tenant protections including statewide limits and the city’s rent stabilization ordinance for older buildings. Short-term-rental rules are restrictive, and ADUs are common.

DSCR loans in Los Angeles: We base Los Angeles DSCRs on rent that reflects what the unit can legally earn, include projected taxes and earthquake-aware insurance figures, and use our 0.75x floor for high-price deals.

San Diego, California

Climate & population: San Diego has a mild coastal climate, with warm, dry summers, mild winters and little rain. Inland areas are hotter, and wildfire risk affects some canyon and foothill communities. The city has roughly 1.4 million residents.

Schools & colleges: The University of California San Diego, San Diego State University, the University of San Diego and Point Loma Nazarene University are based here, and the San Diego Unified School District runs the public schools.

Major employers: The U.S. Navy and Marine Corps, Qualcomm, Scripps Health, Sharp HealthCare, a large biotech cluster, tourism and the military-contractor sector are leading employers.

Shopping & attractions: Westfield UTC, Fashion Valley and the Gaslamp Quarter provide shopping and dining. Attractions include the San Diego Zoo, Balboa Park, La Jolla Cove, Coronado and Petco Park.

Communities & investment areas: Popular areas include North Park, Pacific Beach, La Jolla, Hillcrest, Ocean Beach, Mission Valley and Clairemont.

Real estate & rental market: Military and biotech employment support strong demand, prices are high, and the city regulates short-term rentals through licensing and caps. State rent limits and ADU rules apply.

DSCR loans in San Diego: We confirm San Diego’s short-term-rental licensing before counting that income, and use our 0.75x floor for properties with high prices relative to rent.

San Jose, California

Climate & population: San Jose has a mild Mediterranean climate, with warm, dry summers and cool, wetter winters. Earthquake risk is a factor, and hillside areas face wildfire exposure. The city has roughly one million residents in Silicon Valley.

Schools & colleges: San Jose State University, nearby Santa Clara University and Stanford, and Evergreen Valley College serve the area. Public schools are run by several districts, including San Jose Unified and East Side Union.

Major employers: Adobe, eBay, Cisco, PayPal and many technology companies headquartered in or near San Jose, along with Santa Clara Valley Medical Center and Kaiser Permanente, drive employment.

Shopping & attractions: Santana Row, Valley Fair and Westfield Oakridge provide shopping. Attractions include the Winchester Mystery House, The Tech Interactive and the SAP Center.

Communities & investment areas: Investors look at Willow Glen, Rose Garden, Almaden Valley, Evergreen and Berryessa, along with ADU-friendly single-family neighborhoods.

Real estate & rental market: Technology wages keep demand and prices very high, so rent-to-price ratios are thin. San Jose applies rent protections on top of state rules, and ADUs are an active source of added income.

DSCR loans in San Jose: For San Jose properties where price far exceeds rent, our 0.75x DSCR floor with reserves can keep a strong-location deal viable.

San Francisco, California

Climate & population: San Francisco has a cool Mediterranean climate, with frequent fog, mild temperatures year-round and rain mostly in winter. Earthquake risk is a central concern. The city has roughly 810,000 residents.

Schools & colleges: The University of California San Francisco, San Francisco State University, the University of San Francisco and the Academy of Art University are based here, and the San Francisco Unified School District runs the public schools.

Major employers: Salesforce, Uber, Wells Fargo, Gap, Levi Strauss, UCSF Health, Kaiser Permanente and the technology and finance sectors are significant employers.

Shopping & attractions: Union Square and Westfield San Francisco Centre lead shopping, with the Ferry Building Marketplace nearby. Attractions include the Golden Gate Bridge, Alcatraz, Fisherman’s Wharf, Golden Gate Park and Chase Center.

Communities & investment areas: Investors consider the Mission, Noe Valley, the Sunset, the Richmond, SoMa, Hayes Valley and Dogpatch, mostly condos and small multifamily buildings.

Real estate & rental market: San Francisco has some of the nation’s highest prices, strict rent control on older buildings, and soft-story retrofit requirements for some apartment buildings. Rent-to-price ratios are low.

DSCR loans in San Francisco: We review rent-control status and insurance for San Francisco properties and use our 0.75x floor for high-price condos and small multifamily.

Sacramento, California

Climate & population: Sacramento has hot, dry summers, mild, wetter winters and a cooling Delta breeze. Levee-protected areas and river corridors carry flood considerations. The city has roughly 525,000 residents.

Schools & colleges: California State University Sacramento and the Los Rios Community College District are based here, with UC Davis and UC Davis Health nearby. The Sacramento City Unified School District runs the public schools.

Major employers: The State of California, UC Davis Health, Sutter Health, Kaiser Permanente, Dignity Health and Intel in nearby Folsom are leading employers.

Shopping & attractions: Arden Fair Mall and Downtown Commons provide shopping, with the Roseville Galleria nearby. Attractions include the State Capitol, Old Sacramento, the Crocker Art Museum and Golden 1 Center.

Communities & investment areas: Popular areas include Midtown, East Sacramento, Land Park, Curtis Park and Natomas, with nearby Elk Grove, Folsom and Roseville.

Real estate & rental market: State employment gives Sacramento steady demand, and prices are lower than the Bay Area, which can mean healthier rent-to-price ratios. Flood zone status matters in some neighborhoods.

DSCR loans in Sacramento: We check flood zone status and use projected Prop 13 taxes for Sacramento purchases, with ADU income counted where permitted.

Fresno, California

Climate & population: Fresno has hot, dry summers, mild winters and occasional tule fog in the Central Valley. Air quality can be a concern in summer. The city has roughly 545,000 residents.

Schools & colleges: California State University Fresno, Fresno Pacific University and Fresno City College are based here, with UCSF Fresno nearby. The Fresno Unified School District and Clovis Unified School District serve the area.

Major employers: Community Medical Centers, Saint Agnes Medical Center, Kaiser Permanente, the school districts and agriculture and food processing, one of the region’s largest industries, drive employment.

Shopping & attractions: Fashion Fair Mall and River Park provide shopping. Attractions include the Tower District, Forestiere Underground Gardens, the Fresno Chaffee Zoo and nearby Yosemite and Sequoia gateways.

Communities & investment areas: Popular areas include the Tower District, Fig Garden, northeast Fresno and neighboring Clovis.

Real estate & rental market: Fresno is one of California’s more affordable large cities, with agriculture and healthcare supporting rental demand and rent-to-price ratios that can clear 1.0x.

DSCR loans in Fresno: We qualify Fresno single-family and small multifamily rentals on rent, a good fit for investors seeking cash flow in California.

Long Beach, California

Climate & population: Long Beach has a mild coastal climate, with warm summers and mild winters, and the coastline brings some flood and earthquake considerations. The city has roughly 460,000 residents in Los Angeles County.

Schools & colleges: California State University Long Beach and Long Beach City College are based here, and the Long Beach Unified School District runs the public schools.

Major employers: The Port of Long Beach, Long Beach Airport, Long Beach Memorial Medical Center, Molina Healthcare and the school district are major employers.

Shopping & attractions: The Pike Outlets, Long Beach Exchange and Second Street in Belmont Shore provide shopping. Attractions include the Queen Mary, the Aquarium of the Pacific and Naples Island.

Communities & investment areas: Popular areas include Belmont Shore, Naples, Bluff Park, Downtown, Bixby Knolls and nearby Signal Hill.

Real estate & rental market: The port, university and healthcare support rental demand, and prices are somewhat lower than much of coastal Los Angeles. Local tenant protections apply in addition to state law.

DSCR loans in Long Beach: We include projected taxes and insurance for Long Beach properties and consider ADU income where it is permitted and documented.

Oakland, California

Climate & population: Oakland has a mild Mediterranean climate, with dry summers and mild winters. The Hayward Fault runs through the area, and the hills carry wildfire exposure. The city has roughly 440,000 residents.

Schools & colleges: Merritt College, Laney College and the California College of the Arts are based here, with UC Berkeley next door. The Oakland Unified School District runs the public schools.

Major employers: The Port of Oakland, Kaiser Permanente, Alameda Health System, Clorox, Blue Shield of California and the city government are significant employers.

Shopping & attractions: Jack London Square, Piedmont Avenue and Rockridge’s College Avenue provide shopping and dining. Attractions include Lake Merritt, the Oakland Museum of California and Chabot Space and Science Center.

Communities & investment areas: Investors look at Rockridge, Temescal, the Lake Merritt area, Montclair, Fruitvale and Jack London, among varied neighborhoods.

Real estate & rental market: Oakland offers somewhat lower prices than San Francisco, with transit access to the Bay Area core. The city adds its own tenant protections to state law.

DSCR loans in Oakland: We confirm Oakland rent-control status and wildfire or earthquake insurance costs before finalizing your DSCR.

Bakersfield, California

Climate & population: Bakersfield has hot, dry summers, mild winters and occasional tule fog in the southern Central Valley. Air quality can be a concern. The city has roughly 410,000 residents.

Schools & colleges: California State University Bakersfield and Bakersfield College are based here, and the Bakersfield City School District and Kern High School District serve the area.

Major employers: Oil and gas companies including Chevron, agriculture, Kern Medical, Adventist Health Bakersfield and local government are leading employers.

Shopping & attractions: The Marketplace and Valley Plaza provide shopping. Attractions include Buck Owens’ Crystal Palace, the Fox Theater and the Kern River Parkway.

Communities & investment areas: Popular areas include the Southwest, the Northwest, Seven Oaks and the Stockdale area.

Real estate & rental market: Bakersfield is one of California’s most affordable large cities, with energy and agricultural jobs supporting rentals and rent-to-price ratios that can be strong.

DSCR loans in Bakersfield: We structure Bakersfield purchases property by property, a fit for investors who want cash flow from modestly priced California rentals.

Anaheim, California

Climate & population: Anaheim has a mild Southern California climate, with warm, dry summers and mild winters. Santa Ana winds raise fire risk in the hills, and earthquakes are a consideration. The city has roughly 345,000 residents.

Schools & colleges: California State University Fullerton and other Orange County campuses are nearby. The Anaheim Union High School District and Anaheim Elementary School District serve the city.

Major employers: The Disneyland Resort is the largest employer, followed by the Anaheim Convention Center, Angel Stadium, Kaiser Permanente Anaheim and the local school districts.

Shopping & attractions: Anaheim GardenWalk and the Anaheim Packing House provide shopping and dining. Attractions include Disneyland, Disney California Adventure, Angel Stadium and the Honda Center.

Communities & investment areas: Popular areas include the Platinum Triangle, Anaheim Hills, the Colony Historic District and the Resort District.

Real estate & rental market: Tourism and hospitality support rental demand, though short-term rentals are tightly restricted. Prices are high relative to rent across Orange County.

DSCR loans in Anaheim: We verify Anaheim’s short-term-rental restrictions before counting that income, and use our 0.75x floor for properties with high prices relative to rent.

Riverside, California

Climate & population: Riverside has hot, dry summers and mild winters. Santa Ana winds and foothill wildfire risk, plus earthquake exposure, are factors. The city has roughly 320,000 residents in the Inland Empire.

Schools & colleges: The University of California, Riverside, California Baptist University, La Sierra University and Riverside City College are based here, and the Riverside Unified School District serves the area.

Major employers: UC Riverside, Riverside University Health System, Kaiser Permanente, Riverside County government, March Air Reserve Base and the logistics sector are major employers.

Shopping & attractions: The Galleria at Tyler and Riverside Plaza provide shopping. Attractions include the Mission Inn Hotel and Spa, Mount Rubidoux and the Fox Performing Arts Center.

Communities & investment areas: Popular areas include Downtown, the Wood Streets, Orangecrest, Arlington and La Sierra.

Real estate & rental market: The Inland Empire offers lower prices than coastal Southern California, with student and commuter demand supporting rentals. State rent limits apply.

DSCR loans in Riverside: We qualify Riverside single-family and small multifamily rentals on rent, with insurance figures that reflect fire and earthquake exposure.

Irvine, California

Climate & population: Irvine has a mild Southern California climate, with warm, dry summers and mild winters. Earthquake risk applies across the region. The city has roughly 310,000 residents in Orange County.

Schools & colleges: The University of California, Irvine, Irvine Valley College and Concordia University Irvine are based here, and Irvine Unified School District is widely regarded.

Major employers: UC Irvine, the Irvine Company, Broadcom, Edwards Lifesciences, Blizzard Entertainment, Hoag and Kaiser Permanente are leading employers.

Shopping & attractions: Irvine Spectrum Center provides shopping and dining, with Fashion Island and South Coast Plaza nearby. Attractions include the Orange County Great Park and Irvine Lake.

Communities & investment areas: Popular areas include Woodbridge, Northwood, Turtle Rock, Orchard Hills and the Great Park neighborhoods, which are mostly planned communities.

Real estate & rental market: Irvine’s planned communities, strong schools and university demand keep prices high. Many newer neighborhoods carry Mello-Roos special taxes and HOA dues.

DSCR loans in Irvine: We include Mello-Roos taxes and HOA dues in your Irvine DSCR, since they can add hundreds of dollars to the monthly payment.

Stockton, California

Climate & population: Stockton has hot, dry summers, mild winters and tule fog in the northern San Joaquin Valley. Parts of the Delta region carry flood considerations. The city has roughly 320,000 residents.

Schools & colleges: The University of the Pacific, San Joaquin Delta College and Humphreys University are based here, and the Stockton Unified School District serves the area.

Major employers: The Port of Stockton, San Joaquin County, Dignity Health St. Joseph’s Medical Center, Kaiser Permanente, logistics and agriculture are leading employers.

Shopping & attractions: Weberstown Mall and Sherwood Mall provide shopping. Attractions include the Stockton waterfront, the Bob Hope Theatre, the Haggin Museum and the Stockton Ports baseball team.

Communities & investment areas: Popular areas include Brookside, Lincoln Village, Weston Ranch and Downtown, with Lodi nearby.

Real estate & rental market: Stockton is a commuter market for the Bay Area, with prices well below the coast and warehouse and logistics jobs supporting local demand.

DSCR loans in Stockton: We check flood zone status for Stockton properties and qualify rentals on rent, with strong rent-to-price ratios in many neighborhoods.

Palm Springs, California

Climate & population: Palm Springs has a desert climate, with very hot summers, warm, dry winters and little rain. The San Andreas Fault system runs near the area. The city has roughly 45,000 residents, with a much larger seasonal population.

Schools & colleges: College of the Desert and a California State University San Bernardino campus are nearby in Palm Desert, and the Palm Springs Unified School District serves the area.

Major employers: Tourism and hospitality, Desert Regional Medical Center, the Agua Caliente Band’s casinos, Palm Springs International Airport and local government are leading employers.

Shopping & attractions: Palm Canyon Drive provides shopping and dining, with Westfield Palm Desert and the Desert Hills Premium Outlets nearby. Attractions include the Palm Springs Aerial Tramway, Indian Canyons and mid-century modern architecture.

Communities & investment areas: Popular areas include the Movie Colony, Old Las Palmas, Vista Las Palmas, Downtown and the Uptown Design District.

Real estate & rental market: Palm Springs is a major vacation-rental market, with the city regulating short-term rentals through permits and limits. Seasonal demand peaks around major events.

DSCR loans in Palm Springs: We confirm Palm Springs permits and caps before counting short-term-rental income, so your DSCR reflects what the property can lawfully earn.

Santa Barbara, California

Climate & population: Santa Barbara has a mild Mediterranean climate, with warm, dry summers and mild winters. Wildfire, post-fire debris flows and earthquakes are real risks. The city has roughly 88,000 residents.

Schools & colleges: The University of California, Santa Barbara, Santa Barbara City College and Westmont College are based here or nearby, and the Santa Barbara Unified School District serves the city.

Major employers: UC Santa Barbara, Cottage Health, tourism and hospitality, local government and a small technology sector are leading employers.

Shopping & attractions: State Street, Paseo Nuevo and La Cumbre Plaza provide shopping, with the Funk Zone for tasting rooms. Attractions include Stearns Wharf, the Old Mission and the County Courthouse.

Communities & investment areas: Popular areas include the Riviera, the Mesa, Downtown, Goleta and nearby Montecito.

Real estate & rental market: Santa Barbara has very high prices and tight supply, with student and visitor demand. Short-term-rental rules are restrictive, and wildfire insurance can be costly.

DSCR loans in Santa Barbara: We obtain insurance quotes that reflect Santa Barbara’s wildfire and debris-flow zones and use our 0.75x floor for high-priced properties.

Pasadena, California

Climate & population: Pasadena has a warm, dry Mediterranean climate, with hot summers and mild winters. The foothills carry wildfire exposure, and earthquake risk applies. The city has roughly 135,000 residents.

Schools & colleges: Caltech, Pasadena City College, Art Center College of Design and Fuller Theological Seminary are based here, and the Pasadena Unified School District serves the city.

Major employers: NASA’s Jet Propulsion Laboratory, Caltech, Huntington Hospital, East West Bank, Western Asset and the city government are major employers.

Shopping & attractions: Old Pasadena, Paseo Colorado and South Lake Avenue provide shopping and dining. Attractions include the Rose Bowl, the Rose Parade, the Norton Simon Museum and the Arroyo Seco.

Communities & investment areas: Popular areas include Old Pasadena, South Lake, Bungalow Heaven, San Rafael and Lamanda Park.

Real estate & rental market: Science and academic employment support steady demand, with high prices and local tenant protections layered on state rent limits.

DSCR loans in Pasadena: We confirm rent-control status for Pasadena properties and include projected taxes and insurance in your DSCR.

San Bernardino, California

Climate & population: San Bernardino has hot, dry summers and mild winters at the base of the San Bernardino Mountains. Foothill wildfire risk and San Andreas Fault exposure apply. The city has roughly 225,000 residents.

Schools & colleges: California State University San Bernardino and San Bernardino Valley College are based here, with Loma Linda University nearby. The San Bernardino City Unified School District serves the area.

Major employers: San Bernardino County, Loma Linda University Health, Community Hospital, Stater Bros. Markets and a large logistics and warehousing sector are leading employers.

Shopping & attractions: Inland Center and Hospitality Lane provide shopping. Attractions include San Manuel Stadium, the original McDonald’s Museum and nearby Lake Arrowhead and Big Bear.

Communities & investment areas: Popular areas include the Redlands, Highland, Rialto and Fontana areas surrounding the city.

Real estate & rental market: San Bernardino is one of the Inland Empire’s more affordable markets, with logistics employment and long-term renter demand. State rent limits apply.

DSCR loans in San Bernardino: We qualify San Bernardino rentals on rent, with strong rent-to-price ratios often supporting a DSCR above 1.0x.

Temecula, California

Climate & population: Temecula has warm, dry summers, mild winters and Mediterranean-style wine-country weather. Wildfire exposure applies on surrounding hillsides. The city has roughly 110,000 residents.

Schools & colleges: Mt. San Jacinto College has a Temecula campus, and the Temecula Valley Unified School District serves the area.

Major employers: Temecula Valley Hospital, Abbott, the school district, the wine and hospitality industry and local government are leading employers.

Shopping & attractions: Promenade Temecula and Old Town Temecula provide shopping and dining. Attractions include the Temecula Valley wine country, the Balloon and Wine Festival and Vail Lake.

Communities & investment areas: Popular areas include Old Town, Redhawk, Harveston and Wolf Creek, with nearby Murrieta, mostly planned communities.

Real estate & rental market: Temecula combines strong schools and wine-country tourism with prices below coastal Southern California. Many neighborhoods carry Mello-Roos taxes and HOA dues.

DSCR loans in Temecula: We include Mello-Roos taxes and HOA dues in your Temecula DSCR, and confirm short-term-rental rules for wine-country properties.

Modesto, California

Climate & population: Modesto has hot, dry summers, mild winters and tule fog in the northern San Joaquin Valley. Air quality can be a concern. The city has roughly 220,000 residents.

Schools & colleges: Modesto Junior College is based here, and California State University Stanislaus is nearby in Turlock. Modesto City Schools serves the area.

Major employers: E. & J. Gallo Winery, Stanislaus County, Doctors Medical Center, Memorial Medical Center, agriculture and food processing are significant employers.

Shopping & attractions: Vintage Faire Mall provides shopping. Attractions include the Gallo Center for the Arts, the McHenry Mansion and the historic Modesto Arch.

Communities & investment areas: Popular areas include Downtown, Village One, the Briggsmore corridor and neighboring Salida and Ceres.

Real estate & rental market: Modesto’s agricultural base and Bay Area commuter demand support rentals, with prices well below the coast and healthier rent-to-price ratios.

DSCR loans in Modesto: We qualify Modesto single-family and small multifamily rentals on rent, with first-time investors welcome.

Santa Rosa, California

Climate & population: Santa Rosa has warm, dry summers and mild, wetter winters in Sonoma County wine country. Wildfire exposure is a serious consideration, and earthquake risk applies. The city has roughly 178,000 residents.

Schools & colleges: Santa Rosa Junior College is based here, with Sonoma State University nearby in Rohnert Park. Santa Rosa City Schools serves the area.

Major employers: Kaiser Permanente, Sutter Santa Rosa Regional Hospital, Keysight Technologies, Sonoma County government and the wine and hospitality industry are major employers.

Shopping & attractions: Santa Rosa Plaza and Coddingtown Mall provide shopping, with Railroad Square for dining. Attractions include the Charles M. Schulz Museum, Luther Burbank Home and Gardens and the surrounding wine country.

Communities & investment areas: Popular areas include Fountaingrove, Railroad Square, Rincon Valley, Bennett Valley and Montgomery Village.

Real estate & rental market: Wine-country tourism and Bay Area commuters support demand, and rebuilt homes after past wildfires can have updated systems. Wildfire insurance can be costly or hard to place.

DSCR loans in Santa Rosa: We work from actual wildfire-area insurance quotes for Santa Rosa properties so your DSCR reflects the true cost of coverage.

We lend throughout California. If your city is not listed here, call us or submit the application and we will check.

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City information is general and approximate, provided for illustration, and may change. It is not property-specific advice or a commitment to lend.

Answers

California DSCR loan FAQ

What is a DSCR loan?

A DSCR loan approves a rental based on the income the property produces. We compare monthly rent with the full monthly payment, which includes principal, interest, property taxes, insurance and any HOA or special-tax charges. Your pay stubs, W-2s and tax returns are not part of the qualification.

Can I qualify if rent does not cover the payment?

Yes, within limits. Our floor is 0.75x with reserves, so a property whose rent covers about 75% of the payment can still be considered. In many California markets, prices are high relative to rent, so a ratio below 1.0x is common and a lower floor can make the difference.

How do California property taxes affect my DSCR?

Under Proposition 13, a property is generally assessed at its purchase price and taxed at about 1% plus local bonds and assessments, with annual increases capped. Because the assessed value resets at purchase, we use the projected tax bill for your purchase price, not the seller’s old bill.

What are Mello-Roos taxes, and do they matter?

Mello-Roos, or Community Facilities District, special taxes are extra annual charges found mostly in newer communities. They can add hundreds of dollars a month, so we include them in your payment when they apply.

How does rent control affect the rent I can use?

California limits annual rent increases and requires just cause for many tenancies, and some cities add stricter local rules. We rely on a lease or an appraiser’s market rent that reflects what the unit can legally earn.

How do wildfire and earthquake risk affect underwriting?

Standard homeowners policies typically do not cover earthquakes, and wildfire-area coverage can be costly or hard to place. We work from an actual insurance quote for the property, and where flood or wildfire zones apply, we look at those costs before finalizing your DSCR.

Can an ADU or a second unit help me qualify?

Possibly. Permitted accessory dwelling units can add rental income, and we consider them case by case based on the appraisal and permit status. Unpermitted units generally cannot be counted.

Can short-term-rental income qualify the loan?

Yes, for eligible properties. Documented Airbnb or Vrbo history, or a market-based projection, can be used when local rules allow short-term rentals. Many California cities restrict them, so we confirm the local rules and any HOA limits first.

How do California closings work, and can I use an LLC?

California closings run through an escrow and title company, and we coordinate with them throughout. You can close in an LLC or other entity, and foreign nationals and first-time investors are welcome.

Will getting a quote affect my credit?

No. We do not pull your credit just to show you numbers. You can see your estimated rate, leverage and DSCR first.

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© 2026 CambridgeHomeLoan.com · NMLS #1826020 · 4830 W Kennedy Blvd, Tampa, FL 33609 · (800) 826-5077 · Equal Housing Lender. DSCR loans are business-purpose loans for non-owner-occupied investment properties and are not available for primary residences. Rates, points, LTV, DSCR requirements, terms and closing timelines are illustrative, subject to change without notice, and subject to borrower, property and deal qualification and underwriting approval. “Rates from 5.75%,” “up to 85% LTV,” “DSCR floor of 0.75x” and other figures reflect the strongest profiles and are not a quote or commitment to lend. Tax, insurance and special-assessment figures are based on documents and projections for the specific property at the time of underwriting and may change. Rent-control, rental-registration and short-term-rental rules vary by city and county and are the borrower’s responsibility to satisfy. ADU income is considered only when permitted and documented. Calculator results and examples are illustrative and exclude closing costs. Comparison figures are generic market composites and are not the terms of any specific lender. City descriptions are general observations for illustration only. This page is informational and does not constitute financial, legal, tax or insurance advice.

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