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- California Investor Rental Loans (DSCR & Bank Statement)
DSCR and Bank-Statement Loans for California Real Estate Investors
Qualify on the property’s rent, or on bank statements, P&L or 1099s. Investment property only.
- Business-purpose
- California rental properties
- Purchase and refinance
On select programs, subject to lender approval. Not all applicants will qualify.
Explore our bank-statement versus DSCR comparison guide and hard-money-to-DSCR refinance guide. For a completed construction project, see California construction takeout planning.
Buying, refinancing or pulling cash out of a California rental property? Your first decision is how you want to qualify: on the property’s rent (a DSCR loan), or on your own income documented with bank statements, a CPA-prepared P&L or 1099s. Blue Fox Capital Corporation arranges and places both kinds of loan, for investment properties only.
Programs and terms vary and are subject to lender approval. Not all applicants will qualify.
Program Highlights
- Leverage: varies by program and transaction type. Cash-out limits are often lower.
- Property types: 1–4 unit rentals, plus select programs for 5–8 unit residential and 2–8 unit mixed-use
- Rental types: long-term and short-term rentals. Some programs can use projected short-term rental income on a purchase.
- Vesting: LLC vesting allowed on select programs
- Experience: first-time investors considered on select programs
- Credit: minimums apply and vary by program
- Occupancy: non-owner-occupied investment property only
Option 1: DSCR — Qualify on the Rent
A Debt Service Coverage Ratio (DSCR) loan qualifies the property, not your tax returns. The lender compares the property’s rent to its monthly housing payment: principal, interest, taxes, insurance and any HOA dues. A ratio of 1.0 means the rent covers that payment.
- 1.0 and above: generally the widest program choice and the strongest terms
- Below 1.0 or no-ratio: some programs allow it, usually with lower leverage, higher credit or reserve requirements, and other restrictions. See No-Ratio DSCR Loans.
- No personal income documentation: DSCR programs don’t use your W-2s or personal tax returns to qualify
Option 2: Bank Statement, P&L or 1099 — Qualify on Your Business Income
If you’re self-employed and your tax returns understate what you earn, some programs let you qualify for an investment-property purchase or cash-out refinance using:
- 12 or 24 months of personal or business bank statements
- A CPA-prepared profit-and-loss statement
- 1099 income
- Asset-based qualification (asset depletion or asset utilization)
This page covers investment property only. If you’re buying or refinancing a home you live in, see Non-QM & Alternative-Income Loans.
Refinancing Out of Hard Money (BRRRR)
Bought below value, finished the rehab and rented it out? Some DSCR programs will use today’s appraised value with no seasoning period, letting you refinance out of a short-term loan into long-term financing, subject to lender approval. Planning a flip-to-rent? See Fix-and-Flip & Bridge Loans.
Which Path Fits
- The property cash-flows and you’d rather not document income: DSCR
- The rent is thin but your business income is strong: bank statement or P&L
- You’re scaling a portfolio in an LLC: DSCR with LLC vesting, on select programs
- Short-term rental: DSCR programs that accept actual or projected STR income
- Your loan is coming due and your lender won’t extend: a DSCR refinance, start with a term sheet
What Lenders Look At
- The DSCR, or your documented income on bank-statement and P&L programs
- Credit score and housing history
- Reserves after closing
- Appraisal, including a market-rent schedule, and property condition
- Leases, or rental history and projections for short-term rentals
- Entity documents if you’re closing in an LLC
How It Works
- Send the scenario. Property address, purchase price or value, rent, loan amount and how you want to qualify.
- Term sheet. We review your request and discuss potential financing options, subject to lender approval.
- Application and appraisal. Your chosen lender issues disclosures and orders the appraisal.
- Underwriting. We manage conditions with the lender.
- Close. Signing and funding through the lender and title.
FAQ
What is a DSCR loan?
A DSCR loan qualifies you on the rental property’s income instead of your personal income. If the rent covers the monthly housing payment by the margin the program requires, you may qualify, subject to credit, reserves, appraisal and lender approval.
What DSCR ratio do I need?
Many programs look for 1.0 or higher. Some allow a lower ratio, or no ratio, with restrictions such as lower leverage.
Can I close in an LLC?
Yes, on select programs. The lender will review your entity documents and usually requires a personal guarantee.
Can I use short-term rental income?
Many programs accept short-term rental income. Some can use projected income on a purchase, and others require a rental history.
Can I use this loan for a home I’ll live in?
No. These are business-purpose loans for non-owner-occupied investment property. For a primary residence, see Home Loans or Non-QM & Alternative-Income Loans.
Do you post rates?
No. Pricing depends on the property, leverage, credit and the lender, and it changes daily. Request a term sheet for your scenario.
Get a California DSCR Term Sheet
Tell us about the property and how you’d like to qualify. A loan advisor will follow up.
Blue Fox Capital Corporation is a licensed mortgage broker and arranges and places financing for real estate investors, commercial property owners and California homeowners. Its role depends on the program a loan is matched to: on select business-purpose programs it may be named as the lender on the loan documents, and on all other programs it acts as broker. The loan documents identify its role and the lender. Programs, terms and availability vary by loan and are subject to approval. CA DRE 01527288 | NMLS 1840487. Daniel Eckhouse, NMLS 217328 | CA DRE 01977403. The loans described on this page are business-purpose loans secured by non-owner-occupied investment or commercial property. They aren’t available for a home you live in or plan to live in. Program ranges are marketing ranges, not guarantees. They’re subject to change without notice, and to borrower qualification, property eligibility, appraisal and lender approval. Not all applicants will qualify. This is not a commitment to lend. Equal Housing Opportunity. 66350 Pierson Blvd, Suite A, Desert Hot Springs, CA 92240 | (310) 756-3619 | dan@bluefoxcapital.com