A DSCR loan qualifies a Garden Grove rental on its debt service coverage ratio — rent ÷ full payment (PITIA) — instead of your income. Aim for DSCR ≥ 1.0, credit ~640–660+, 20–25% down. Attainable prices plus ADU and 2–4 unit stock stack rents for a stronger ratio. Full program details.
How a DSCR loan works
Instead of your pay stubs or tax returns, the lender checks whether the property pays for itself. If the rent covers the full mortgage payment, the loan works — regardless of your personal income. Your personal DTI never enters the picture, so you can keep buying.
Garden Grove's edge: attainable prices and the ADU
Typical terms (2026)
| Feature | Typical |
|---|---|
| Qualifying basis | Property cash flow — no personal income docs |
| Min DSCR | Often ≥ 1.0 (ADU / multi rent helps) |
| Credit score | ~640–660+ |
| Down payment | ~20–25% |
| Best fit | SFR + ADU & 2–4 unit; workforce tenants |
| Rate | Typically above conventional |
Terms vary by lender, ratio & property; illustrative for 2026, not an offer. Confirm short-term rental & ADU rules independently.
DSCR loan FAQs
What is it?
A rental loan qualifying on property cash flow, not personal income.
How does an ADU help?
Adds a second rent on one payment — lifts the ratio.
Best property types?
SFR + ADU & 2–4 units; stack rents for a better ratio.
Short-term rentals?
Regulated — underwrite long-term rent.
Typical terms?
~640–660+ credit, 20–25% down, no income docs. Illustrative.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766), serving Garden Grove from its Newport Beach office. Short-term rental and ADU rules are set by state and local government and change; confirm independently.