What is a DSCR loan?
A DSCR loan is a mortgage on an investment property that qualifies largely on the property's rental income rather than on your personal income. It belongs to the non-QM family — loans that sit outside the standard conventional box but still verify that the loan can be repaid. Along with bank statement loans, DSCR investor loans are among the most common non-QM programs.
How is the debt service coverage ratio calculated?
The ratio compares the property's monthly rent with its monthly housing payment: principal and interest, property taxes, insurance, and any HOA dues. Divide the rent by that payment. A ratio of exactly 1.0 means the rent covers the payment; above 1.0 leaves room to spare; below 1.0 means the payment is larger than the rent. Each lender sets its own minimum ratio and its own way of counting rent, which is why we do not publish a single cutoff here.
Who are DSCR loans in Glendale for?
DSCR loans in Glendale suit investors buying or refinancing a rental, especially self-employed investors and business owners whose tax returns show heavy write-offs. They are not for the home you live in. If you are buying a primary residence, start with our conventional, FHA and VA programs, or read our guide to bank statement loans for self-employed buyers.
Do you arrange DSCR loans in Los Angeles, outside Glendale?
Yes. Our office is at 611 E Glenoaks Blvd in Glendale, and we work with borrowers across greater Los Angeles and the rest of California. A DSCR file is built around the property itself — its rent, its value and its payment — so the same process applies whether the rental is in Glendale or elsewhere in Los Angeles County.
DSCR loan or bank statement loan — which fits?
Both are non-QM, and they answer different questions. A bank statement loan qualifies you on your own deposits, which suits a self-employed buyer purchasing a home to live in. A DSCR loan qualifies the rental on its own rent, which suits an investor who wants the property to stand on its numbers. Our plain-English guide to conventional vs. non-QM loans walks through the trade-offs.
Can a DSCR loan refinance a fix-and-flip project?
It can be one way out. A fix and flip loan is short-term money to buy and renovate; if you decide to keep the finished property as a rental, a longer-term loan such as a DSCR loan can pay off the short-term one, provided the finished value and the rent support it. Plan that exit before you buy — our fix and flip and rehab loans page covers the short-term side, and our page on hard money lenders explains how that financing is placed.
What does a DSCR loan cost?
We do not quote rates or fees on this page, because DSCR pricing and requirements vary widely from lender to lender — far more than conventional pricing does. When you compare offers, ask about the rate and whether it is fixed, points, lender and processing fees, the minimum ratio the lender requires, and any prepayment terms. Our mortgage calculator can help you estimate a payment to test against the rent, as an illustration only.
What should I have ready?
The property address, the lease or the expected rent, the purchase contract or your current mortgage statement, and a short note on your plans for the property. If you own other rentals, a list of them helps too. From there we can tell you which lenders' programs fit.
How do I start?
Call (818) 500-4009, 9:00 AM to 5:00 PM, Monday through Friday, or send us a message with the property and your plans. Tom Tumyan, our owner and Senior Loan Officer, has been a licensed loan officer for 25+ years, with experience in commercial and residential real estate — meet Tom. Financing a building of five or more units? See commercial loans.
