DSCR loan rates in California in 2026 are running higher than conventional mortgage rates — typically 1.0% to 2.0% above a comparable conventional loan. That premium is the price of no income verification. Your rental property qualifies the loan, not your tax returns.
2026 DSCR Rate Ranges — California
| Loan Type | Rate Range (2026) | Notes |
|---|---|---|
| 30-yr DSCR (DSCR 1.25+) | 7.125% – 7.875% | Best pricing tier |
| 30-yr DSCR (DSCR 1.0–1.24) | 7.375% – 8.125% | Standard tier |
| 30-yr DSCR (DSCR below 1.0) | 8.25% – 9.50% | Sub-1.0 programs |
| 40-yr DSCR IO | 7.875% – 8.75% | Lower payment, higher rate |
| STR DSCR (Airbnb income) | 7.50% – 8.50% | AirDNA income used |
| Multifamily 5–10 units | 7.75% – 9.00% | Specialty pricing |
What Moves Your DSCR Loan Rate
- DSCR ratio — 1.25+ gets the best tier; below 1.0 triggers sub-1.0 pricing
- Credit score — 740+ earns best pricing; 680 is often the minimum
- Down payment — 25%+ preferred; 20% minimum on most programs
- Property type — SFR cheapest; 2–4 units moderate; 5–10 units and STR add a spread
- Loan size — Jumbo DSCR (above $766,550) adds 0.25%–0.50% in most cases
- Loan term — 30-year fully amortizing is baseline; 40-yr IO adds a premium
DSCR vs. Conventional Rates — Is the Premium Worth It?
On a $600,000 DSCR loan at 7.75% vs. a conventional at 6.875%, the monthly difference is roughly $270/month. If the property’s rent supports the DSCR loan and wouldn’t qualify you on a conventional (common for investors with multiple mortgages or complex income), the DSCR loan isn’t just an option — it’s the only path. The rate premium is the cost of the convenience and qualification flexibility.
How to Get the Lowest DSCR Rate
- Keep your DSCR above 1.25 — it unlocks the best pricing tier
- Score 740+ — each tier band (680/700/720/740) affects rate
- Put 25–30% down — lower LTV = lower rate
- Buy down the rate with points if the seller will contribute
- Use a California-specific DSCR lender like DiVita who can shop multiple investors
📞 Call (800) 239-1103 for a live DSCR rate quote on your California investment property. Rates quoted same-day. NMLS #323700 | Michael DiVita NMLS #241655.
About DiVita Home Finance
DiVita Home Finance is a small, family-owned mortgage company based in Marin County, California. When you call, you speak directly with Michael DiVita — the owner — not a call center, not an out-of-state rep, not someone reading from a script. We’re here for a low-key, no-obligation conversation about your situation.
We take your privacy seriously. We will never sell your information to third-party lenders or lead generation companies — unlike many of the large mortgage platforms. Your inquiry stays with us, period.
📞 Call: (800) 239-1103 | 💬 Text Michael directly: (310) 849-9124
