DSCR Loans in San Diego (2026 Guide)
San Diego real estate investors use DSCR loans to qualify for rental property financing using rental income—not tax returns, W-2s, or personal income calculations.
Whether you’re buying a duplex in North Park, refinancing a short-term rental in Pacific Beach, or scaling a rental portfolio across Carlsbad, Chula Vista, or La Jolla, DSCR loans offer fast approvals, flexible guidelines, and investor-focused underwriting.
This 2026 guide explains DSCR requirements in San Diego, how DSCR is calculated, eligible property types, STR guidelines, and how to structure your loan for the highest approval odds.
What Is a DSCR Loan?
A DSCR loan (Debt Service Coverage Ratio loan) is an investor mortgage where approval is based on the property’s rental income rather than the borrower’s personal income.
Lenders review:
- Actual rental income (lease)
- Market rent (Form 1007)
- PITIA: principal, interest, taxes, insurance, HOA
If the rental income covers or nearly covers the payment, the loan can often qualify—even for self-employed borrowers or investors with complex tax returns.
How DSCR Loans Work
DSCR loans are designed for investors who want simplified lending, fast approvals, and minimal documentation.
San Diego DSCR loan benefits include:
- No tax returns or W-2s required
- LLC ownership allowed
- Fast approval (24–72 hours)
- Flexible credit (660–760+ OK)
- Short-term rental income allowed
- Interest-only payment options
2026 DSCR Loan Requirements in San Diego
Most DSCR lenders serving the San Diego region use the following guidelines:
- Credit Score: 660–760+
- Down Payment: 20–30%
- Reserves: 3–12 months
- DSCR Ratio: 0.80–1.25+
- Experience: Not required
- LLC Ownership: Allowed
- Property Condition: Rent-ready
Higher DSCR = better pricing.
Lower DSCR (0.80–0.99) may still qualify with stronger reserves or higher down payment.
DSCR Loan Rates in San Diego (2026)
DSCR loan rates in San Diego depend on several factors:
- DSCR ratio
- Credit score
- LTV
- Short-term vs. long-term rental
- Property type
General 2026 DSCR pricing ranges:
- 1.20+ DSCR: strongest pricing
- 1.00–1.19 DSCR: standard pricing
- 0.80–0.99 DSCR: available at higher rates
Eligible Property Types
San Diego DSCR loans are available for:
- Single-family investment homes
- 2–4 unit properties
- Condos and townhomes
- ADUs and multi-unit homes
- Portfolio loans (5+ properties)
- Short-term rentals (Airbnb, VRBO)
San Diego DSCR Market Insights
San Diego continues to be one of California’s strongest investor markets due to rising rents, vibrant STR demand, and strong economic growth.
Top DSCR-friendly San Diego submarkets include:
- Pacific Beach – excellent STR demand
- La Jolla – luxury STR potential
- North Park – duplex & 4-unit investor hotspot
- Mission Valley – stable long-term rental market
- Chula Vista – strong rent-to-price ratios
- Carlsbad – premium STR and family rental market
- Clairemont – consistent rental stability
- Hillcrest – mixed-use and condo rental appeal
Each area offers unique DSCR advantages, from STR revenue to high long-term rental stability.
Airbnb & STR DSCR Loans in San Diego
San Diego is one of the hottest short-term rental markets in the state, with consistent demand year-round.
Top STR zones include:
- Pacific Beach
- Mission Beach
- La Jolla
- Ocean Beach
- Gaslamp Quarter
- Carlsbad
Most DSCR lenders allow STR income using:
- AirDNA projected revenue
- 12-month STR history
- Market-based STR analysis
STR rules vary by neighborhood—structuring this correctly maximizes approval odds.
Who DSCR Loans Are Best For
- Long-term rental investors
- Airbnb & short-term rental operators
- Self-employed borrowers
- Real estate investors scaling portfolios
- Borrowers turned down by traditional banks
- Clients wanting simple, fast approval
Start Your DSCR Approval in San Diego
We help San Diego investors structure fast, flexible DSCR financing for both long-term and short-term rentals.
Call: (310) 312-1200 ext. 1
Email: sa@abocapital.com
San Diego DSCR Loan FAQ
Can I qualify with DSCR below 1.0?
Yes—San Diego investors often qualify with DSCR ratios from 0.80–0.95 and with no DSCR requirement when putting 35% or more down, depending on the program.
Do DSCR lenders allow Airbnb income?
Yes—many short-term rental zones in San Diego qualify, including areas like Pacific Beach, Mission Beach, La Jolla, Ocean Beach, and parts of Carlsbad, subject to local regulations.
Is landlord experience required?
No. First-time investors can qualify for many DSCR programs.
Can I close in an LLC?
Yes—DSCR loans are designed to be investor- and LLC-friendly.
How fast do San Diego DSCR loans close?
Typically 10–21 days, depending on appraisal timing and documentation.
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