How is the DSCR calculated?

Gross monthly rent divided by monthly PITIA (principal, interest, taxes, insurance, and HOA dues if applicable). A 1.0 DSCR means the rent exactly covers PITIA; 1.25 means the rent is 25% higher than PITIA.

Can I close in an LLC?

Yes — most DSCR lenders prefer or even require closing in a single-purpose LLC. The borrower(s) of record become the LLC, with personal guarantees from the members.

Do I need landlord experience for a DSCR loan?

Most DSCR programs don't require prior landlord experience, though a few price slightly better for borrowers who own at least one other rental property. First-time investors can qualify.

What if the property isn't currently leased?

The appraiser provides a market-rent estimate (Form 1007 for single-family, Form 1025 for 2-4 unit). The lender uses that figure to calculate DSCR if there's no signed lease in place.

What about short-term rentals (Airbnb/VRBO)?

Some DSCR lenders specifically program for short-term rental income using 12-month AirDNA reports or operator P&L; others stick to long-term lease comparables. Ask any loan officer you talk to whether they have a short-term rental-friendly DSCR program.

How are cash-out refinances handled on DSCR?

Most DSCR cash-out programs cap at 75% LTV with a minimum 6–12 month seasoning since purchase. Cash-out proceeds can typically be used for any business purpose, including the down payment on another investment property.

How do DSCR rates compare to conventional investment loans?

DSCR is generally priced higher than a comparable conventional investment loan because the lender doesn't underwrite personal income. The convenience and speed often justify the premium for active investors.

DSCR Loans in San Francisco, CA | Limits, Requirements

Real-estate investors qualifying from rental property cash flow rather than personal W-2 income.

Borrowers in San Francisco, California can use DSCR financing for primary residences in most cases, subject to the 2026 loan limit applicable to California. Talk to a licensed loan officer to confirm eligibility for your situation — credit, debt-to-income ratio, and property type all factor into approval.

Before reaching out, verify any loan officer's current licensing through NMLS Consumer Access. MLO Finder shows source-linked review snapshots where available but is not a lender and does not originate loans.

DSCR (Debt-Service Coverage Ratio) loans are built for real-estate investors. The property qualifies based on its rental income relative to its monthly mortgage payment — your personal W-2 income, tax returns, and employment history are not used. They're commonly used by full-time investors, self-employed buyers with complex tax returns, and anyone scaling a rental portfolio beyond the conventional cap of 10 financed properties.

Investors building a rental portfolio in San Francisco, California use DSCR financing to scale beyond the conventional 10-financed-property cap and to skip the tax-return paperwork that complicates conventional investment loans. Rent comparables in your specific San Francisco submarket drive the DSCR calculation, so an appraiser familiar with the area is more valuable here than on most other loan types. Confirm program details, minimum DSCR, and short-term-rental eligibility with a licensed loan officer before writing an offer. Verify any loan officer's current licensing through NMLS Consumer Access before applying. MLO Finder is a directory, not a lender.

This page is for informational purposes only and does not constitute a loan offer, rate quote, or commitment to lend. Verify any loan officer's current licensing through NMLS Consumer Access. MLO Finder is a directory, not a lender, and does not originate loans.

DSCR Loans in San Francisco, CA

What this loan type means for San Francisco buyers.

Who DSCR loans are for in San Francisco.

What it takes to qualify for a DSCR loan.

Common myths about DSCR loans.

DSCR loan limits in California.

Helpful Guides & Resources

Licensed mortgage professionals serving San Francisco.

Jordan Daniel Clark

Julie Jeneen Conlon

Julie Shoemaker Malta

Kamyar Zolfaghari

Kara Ann Fiore

Karen Toms Brown

Katherine Grace Perez

Kathy Derangi

Kelly Jane Trueb

Kelly Lee Whytock

Kenneth Dean

Kevin Casey Murphy

DSCR loan questions San Francisco buyers ask.

DSCR financing in San Francisco, CA.

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