A DSCR loan qualifies a Santa Monica 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. Critical local factors: rent control and a short-term-rental ban — underwrite on 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. The loan mechanics are the same in Santa Monica as anywhere; what's different here is the local rules that shape your rent.
The two rules every Santa Monica investor must underwrite
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% |
| Rent basis | Long-term (STRs restricted here) |
| Rate | Typically above conventional |
Terms vary by lender, ratio & property; illustrative for 2026, not an offer. Confirm rent-control & STR rules independently.
DSCR loan FAQs
What is it?
A rental loan qualifying on property cash flow, not personal income.
How does rent control affect it?
Doesn't block the loan; caps rent growth — underwrite conservatively & check unit status.
Short-term rentals?
Generally prohibited (non-hosted) — qualify on long-term rent.
How's DSCR calculated?
Monthly rent ÷ PITIA. 1.0 = rent covers payment.
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 Santa Monica from its Marina del Rey office. Rent-control and short-term rental rules are set by local government and change; confirm independently. This is not legal advice.