A DSCR loan qualifies a Pasadena 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. Pasadena's university and hospital demand supports steady long-term rent; 2–4 unit stock stacks rents. Full program details.
How a DSCR loan works
Instead of your pay stubs or tax returns, the lender looks at whether the property pays for itself. If the rent covers the mortgage payment, the loan works — regardless of your personal income. Your personal DTI never enters the picture, so you can keep buying.
Pasadena's edge: institution-driven demand
Typical terms (2026)
| Feature | Typical |
|---|---|
| Qualifying basis | Property cash flow — no personal income docs |
| Min DSCR | Often ≥ 1.0 (some lower w/ adjustments) |
| Credit score | ~640–660+ |
| Down payment | ~20–25% |
| Best fit | 2–4 unit stock; long-term institutional tenants |
| Rate | Typically above conventional |
Terms vary by lender, ratio & property; illustrative for 2026, not an offer. Confirm short-term rental rules independently.
DSCR loan FAQs
What is it?
A rental loan qualifying on property cash flow, not personal income.
Strong rental demand?
Yes — durable, from Caltech, JPL, colleges & hospitals.
Small multi-unit?
Yes — older 2–4 unit stock stacks rents for a better ratio.
Short-term rentals?
Restricted for non-owner-occupied — 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 Pasadena from its Marina del Rey office. Short-term rental rules are set by local government and change; confirm independently.