DSCR Loans San Diego 2026 | Rental Property Investment Financing

San Diego’s real estate market offers investors a unique combination: strong, consistent rental demand driven by the military, UCSD and other universities, biotech, tourism, and a year-round desirable climate. Whether you’re buying a single-family rental in Chula Vista, a small multifamily in City Heights, or a vacation rental near the beach, DSCR loans offer a streamlined path to investment property financing in San Diego County.

How DSCR Loans Work for San Diego Investors

A DSCR (Debt Service Coverage Ratio) loan qualifies the borrower based on whether the property’s rental income covers the mortgage payment — not based on the borrower’s personal income, tax returns, or employment. This is particularly useful in San Diego where many investors are self-employed, military with complex income, or out-of-state buyers who prefer not to document personal finances.

San Diego’s Short-Term Rental Market

San Diego is a top Airbnb and VRBO market — Mission Beach, Pacific Beach, Ocean Beach, La Jolla, and Coronado generate strong short-term rental income. Several DSCR lenders now accept short-term rental income history or market rent analyses for vacation rental properties, opening DSCR financing to an even broader range of San Diego investment scenarios.

DSCR Loan Features

• No personal income, W-2, or tax return required
• 1006,250 San Diego County conforming limit for 2026 — DSCR loans available above and below
• 30-year fixed, ARM, and interest-only options
• Single-family, 2–4 unit, condos, townhomes, and short-term rentals (select lenders)
• LLC ownership available through select lenders
• No limit on number of properties financed (lender-specific)

Frequently Asked Questions

What DSCR do San Diego lenders typically require?

Most lenders target 1.0 or higher. Some allow below-1.0 DSCR — down to 0.75 — for strong borrowers with larger down payments and reserves. In the San Diego market, condos and single-family rentals in high-demand coastal areas often produce stronger DSCRs than the purchase price would suggest, due to high market rents.

Can I get a DSCR loan on a San Diego Airbnb property?

Possibly. Some lenders use AirDNA market data or documented STR income history to underwrite short-term rental properties. Call us to discuss your specific property address and situation.