A DSCR loan qualifies a Redondo Beach 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. On townhomes/condos, HOA dues count in PITIA. Underwrite long-term rent. 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.
Why HOA dues matter more in Redondo
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% |
| Watch item | HOA dues (part of PITIA) on attached homes |
| 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.
Do HOA dues affect DSCR?
Yes — they're in PITIA; a low HOA improves your ratio.
How's DSCR calculated?
Monthly rent ÷ PITIA (incl. HOA). 1.0 = rent covers payment.
Short-term rentals?
Restricted in most residential areas — qualify on 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 Redondo Beach from its Marina del Rey office. Short-term rental rules are set by local government and change; confirm independently.