California DSCR Home Mortgages
Debt Service coverage Ratio Home Mortgages
California DSCR Home Mortgages
Debt Service coverage Ratio Home Mortgages
California DSCR Home Mortgage Lender
Welcome to Capital Home Mortgage California, where we strive to provide California’s Investors (DSCR) Debt Service Coverage Ratio Home Mortgages as alternative options to purchase, refinance, or cash out investment properties.
California Debt Service Coverage Ratio Home Mortgages are tailored for investors who want to grow their portfolio without the hassle of traditional homes loans that require income documentation and adhere to strict government guidelines. They assess the ability of the property’s income to cover its debt obligations, rather than focusing on the borrower’s personal income. These DSCR loans are popular options in California’s dynamic and diverse economy.
Capital Home Mortgage California can guide investors through this non-traditional mortgage path, offering individualized solutions. Our extensive experience and dedication to customer service make us a dependable option for California DSCR Loans.
Call today (888) 620-7744 to speak to a California DSCR Mortgage Specialist.
California dEbt Service Coverage Ratio Mortgage Loans
A DSCR loan, or debt service coverage ratio loan, is a type of mortgage loan used for purchasing short-term or long-term rental investment properties. With a DSCR loan, borrowers can qualify for a mortgage based on a property’s rental analysis. No personal income or employment information is required to qualify. Debt service coverage ratio or DSCR is a measurement of a property’s expected cash flow to determine ability to repay a mortgage loan. It is calculated by dividing the borrower’s net operating income by their debt obligations, including the debt payment.
- Purchase, Rate & Term, Cash-Out
- Minimum Credit 660
- Maximum LTV 85% (Dependent on Property Type / Credit Score)
- Qualify based on Property Income
- DSCR < 1.0 and No DSCR Options
- No Employment or Income Information Required
- LLC’s Allowed
- Interest Only Allowed
- No Limit on Total Properties
- Short Term Rentals Allowed
- Vacant Properties Eligible
- Non-Warrantable Condos Allowed
- No Condo Hotels
- Non-Permanent Residents Allowed
- Minimum Loan 100K
- Maximum Loan 3M
Key Features of California DSCR Home Mortgages
Property Income Based Qualification
- DSCR is calculated by dividing the property’s net operating income (NOI) by the total debt service (monthly principal and interest payments).
- Formula: DSCR=Net Operating Income (NOI) / Debt ServiceDSCR = Income Ratio
- A DSCR of 1.0 means the property’s income matches the debt service.
No Personal Income Qualification
- Borrowers qualify based on the property’s cash flow, not their W-2s, tax returns, or other personal income documents.
Flexible Loan to Value
- Typically up to 75-80% LTV for purchases or refinances, though terms vary based on DSCR and property type.
Property Types
- Includes single-family homes, 2-4 unit properties, condominiums, townhomes, and multi-family buildings.
Credit Score Requirements
- Minimum credit score requirements start around 620, but better terms are available for borrowers with higher scores.
Loan Amounts
- DSCR caters to larger loan amounts, including jumbo DSCR loans for high-value investment properties.
Interest Rates
- Rates may be slightly higher than traditional loans, reflecting the property-focused risk assessment.
How California DSCR Home Mortgages Work
- Strong DSCR (>1.2): A DSCR above 1.2 indicates the property generates more income than needed to cover its debt service, making the borrower a lower risk.
- Neutral DSCR (~1.0): Properties with a DSCR close to 1.0 may still qualify, but borrowers could face stricter terms, like higher rates or lower LTV limits.
- Weak DSCR (<1.0): A DSCR below 1.0 means the property’s income is insufficient to cover the debt service. Some lenders allow this scenario but require higher down payments or reserves.
- No Ratio DSCR (N/A): A No Ratio DSCR means the property’s income is not considered in the cover the debt service. This scenario requires higher down payments and reserves, but is a good option to acquire under performing investment properties that have the potential to be increased.
Benefits of California DSCR Home Mortgages
- Easier Qualification: Suitable for borrowers with non-traditional incomes or multiple investment properties.
- Focus on Cash Flow: Evaluates the viability of the property as a stand-alone investment.
- No Limit on Properties Owned: Ideal for investors with extensive real estate portfolios.
- Flexible Documentation: Simplified process with fewer personal financial requirements.
Eligibility Factors of California DSCR Home Mortgages
- Minimum DSCR: Generally, 1.2 or higher is preferred. Lower DSCR may require additional reserves or equity.
- Credit Score: Most lenders require a credit score of 680 or higher, though some allow for lower scores of 620 with compensating factors.
- Down Payment: Typically 20-25% for purchases; lower down payments may require higher DSCR.
- Reserves: Borrowers may need to demonstrate cash reserves for 6-12 months of mortgage payments.
Who Should Consider California DSCR Home Mortgages
- Real estate investors seeking to finance rental properties.
- Borrowers with complex or irregular income streams.
- Investors looking to expand their portfolio without impacting personal debt-to-income (DTI) ratios.
California Non Qualified Mortgage Rates
Have you ever wondered why interests rates are what they are and what determines the final rate? Why borrowers receive different interest rates? Or why rates go up and down? Interest Rates are calculated using several factors.
- Demand for Mortgage Securities
- Property Securing the Mortgage
- Occupancy of the Property
- Loan to Value of the Property
- Borrower’s Credit Worthiness
Why California is Choosing Capital Home Mortgage
Close On Time
Complete Control from Application to Funding
Low Rates & Low Fees
Direct Lender with Competitive Rates & Fees
Exceptional Service
7 Day a Week Support Application to Funding
California Mortgage Company Reviews
California Mortgage Team
California Mortgage Programs
California Purchase loans
Looking to Purchase a California Home?
- Primary, 2nd Home, Investment
- Low Rates & Fees, No fee Options
- FHA, VA, USDA, Native American
- Conventional, Jumbo & Renovation
- Manufactured, Construction, Reverse
California Renovation Loans
Looking to Rehab a California Home?
- Remodel, Renovate or Repairs
- FHA 203K Streamline
- FHA Full Documentation Rehab
- Fannie Mae Homestyle Reno
- Freddie Mac Home Choice Reno
California FHA Home loans
Great First Time California Homebuyers
- Smaller Down Payments
- Flexible Underwriting Guidelines
- Higher Debt to Income Allowed
- Lower Credit Scores – Down to 500
- Down Payment Gifts Allowed
California va Home Loans
100% Financing for California Veterans
- No Mortgage Loan Limits
- Simple Qualifying
- Higher Debt to Income Allowed
- Lower Credit Scores – Down to 500
- Manual Underwriting Allowed
California Conventional loans
Flexibility for California Homebuyers
- Primary, 2nd Home, Investment
- Single and Multi-Family Properties
- Variable Mortgage Insurance Options
- Low Rates & a Variety of Terms
- Renovation Programs Available
California Jumbo Home Loans
California Non-Conforming Mortgage Loans
- Primary & 2nd Homes
- Variety of Mortgage Programs
- Simple Qualifying for Veterans
- Investor Specific Guidelines
- Credit Score Minimums
California USDA Home loans
100% California Rural Home Mortgages
- Primary Residences
- No Down Payment Required
- New Manufactured Homes Allowed
- Closing Costs / Repairs Rolled In
- Geographic and Income Limits Apply
California Native american Loans
California Hud 184 Home Loans
- Primary Residence Only
- Manual Underwriting for All Loans
- No Credit Score Requirements
- Tribal Grants Allowed
- Purchase, Refinance, and Renovation
California Manufactured loans
Great California Affordable Housing
- Existing Purchase or Refinance
- New Construction
- One Time Close Land/Home Combo
- Lock at Contract
- FHA, VA, USDA, Native American
California Reverse Mortgages
Your California Home at Work for You
- Primary Residence Only
- Simple Qualifying – Equity Based
- No Credit Score Requirements
- Minimum Age 62
- Purchase, Refinance, and Cash-Out
California Non QM Home loans
Making California Mortgages Possible
- Purchase, Refinance & Cash-out
- Primary, Secondary, Investment
- Full Doc Programs
- Alt Doc Programs
- Corporations OK
California construction Loans
Build Your California Dream Home
- Primary Residences Only
- One Time Close
- Lock Rate at Closing
- Traditional Final Mortgages
- No Payments During Construction
California Refinance Home Loans
California Rate & Term Refinance
- Lower Monthly Payment
- Shorten Mortgage Term
- Streamline Options Available
- Appraisal Waivers Allowed
- VA IRRRL’s
California Cashout Home Loans
California Equity Cash Out Mortgages
- Debt Consolidation
- Investment Opportunities
- Home Improvement
- Dream Vacation
- Higher Education
