Our guide covers 5 top DSCR lenders in California and key factors to consider before partnering with one, like closing speed and whether they're a direct lender.
In order to close quickly and reliably, we advise borrowers to consider the following factors before partnering with a DSCR lender in California:
In this post, we cover five of the best DSCR loans in California.
We start by sharing more about how we at Constitution Lending, a direct DSCR lender who has funded many loans in California, can close within 7 to 14 days. We also discuss how we offer unprecedented reliability by giving you a concrete answer about your eligibility as soon as you submit documents.
At the end, we analyze other loan options, such as Griffin Funding, Visio Lending, Easy Street Capital, and Angel Oak, so you can get an understanding of their loan application and closing processes.
Use our automated DSCR loan pricer to generate an instant quote.
Before founding Constitution Lending, we were real estate investors using DSCR (debt-service coverage ratio) loans to purchase rental properties and faced significant problems with lenders who couldn't close quickly or reliably.
Most deals would go like this: We want to purchase an undervalued investment property and compete against a cash offer. The lender says they can easily close within 7 to 14 days.
Fast forward 30 days, we didn't close — the lender is still underwriting and asking for more documents. Then, they unexpectedly say there's a problem with our application (after initially saying we can qualify), and the deal falls through.
We've identified two reasons for this issue:
Constitution Lending can close quickly and reliably because of our automated DSCR pricer and documents portal. Being a direct lender, we can also provide fast and transparent communication.
Here’s feedback from borrowers regarding our loan processes:
With our automated pricer, borrowers can get a quote for a DSCR loan within seconds. Simply provide the purchase price, loan amount, estimated rental income, select California as the property’s location, and the pricer returns with three quotes.
These quotes specify interest rates, monthly repayments, minimum down payments, and available buydowns.
We suggest experimenting with various LTVs, rental incomes, down payments, and property evaluations to see how those factors influence your DSCR loan options.
You can apply for any of the three quotes by selecting “Choose” and entering your full name and email address, and you’ll be able to download loan documents such as a term sheet and approval letter.
You’ll also get access to our documents portal, where you can see what paperwork we need, such as bank statements, proof of insurance, purchase contract, and entity documents, and submit everything.
The whole application process takes a couple of minutes. Once all paperwork is submitted, we close within 7 to 14 days.
Comparing our quick process against most lenders: You must fill in a form on their website and wait multiple days for a call. Then, you spend nearly an hour answering a loan officer’s questions about the property’s value, location, debt obligations, estimated cash flow, and more. The lender takes several days to issue mortgage loan documents and only starts underwriting afterward.
Read more: DSCR Loan Pros and Cons: A Detailed Guide for Investors
We can determine if you qualify once you submit your documents through our portal. You receive a clear-cut answer regarding your eligibility within hours — you aren’t left waiting until the day before closing, like with loan brokers.
We can provide this level of transparent communication because we have the final say on your loan; we don’t have to submit your application to a third-party lender for underwriting before giving you a final answer. This leads to a less stressful borrowing experience.
Loan brokers aren’t the decision-makers on your loan. They can only say if you qualify after the lender has underwritten your application. Underwriting can take multiple weeks; if the lender finds a problem in your application near the closing date, you’re left trying to find emergency financing days before closing.
Read more: Current DSCR Loan Rates + 5 Factors That Impact Interest Rates
Constitution Lending has closed over $200 million of DSCR loans in California and other U.S. states. We’ve funded borrowers in Los Angeles, San Diego, San Francisco, and several other cities in California.
Generate an instant quote with our DSCR loan pricer and see what loan options you qualify for.
Griffin Funding is a non-QM hard money lender operating in California and most U.S. states. California borrowers who struggle to qualify for financing at large banks can use Griffin Funding to get 30-year and 10-year DSCR mortgages, fix-and-flip loans, asset-backed loans, bridge loans, FHA loans, and home equity loans.
Start by filling out the online form on Griffin Funding’s website and providing your full name, email, and contact information. A loan officer will reach out in a few days to assist with the next steps.
Visio Lending is another private money lender that California borrowers can use to secure commercial DSCR loans.
Along with traditional 30-year DSCR loans, they offer short-term vacation rental loans, ideal for those investing in Airbnb properties. The company also provides loan products such as commercial loans, hard money rehab loans, home loans, asset-based loans, and refinancing options, which are good options for investors looking to renovate a real estate investment before renting it out to a tenant.
Start by submitting an application on Visio Lending’s website. A loan officer will reach out to discuss your deal and provide an initial estimate. You’ll be asked to supply supporting documents before moving forward with the closing process.
Easy Street Capital is a mortgage lender offering flexible financing options for real estate investors, especially those with non-W2 income or high debt-to-income ratios. Borrowers can qualify for DSCR financing using the EasyRent loan program. Borrowers don’t have to worry about submitting personal income verification or tax returns, as Easy Street exclusively looks at the property’s income and debt obligations.
To begin, visit the Easy Street Capital website and request a term sheet. Easy Street Capital will ask for more information about the deal, including the loan amount, estimated property value, projected net operating income, and property location. A loan officer will contact you to assist with the next steps.
Angel Oak Mortgage Solutions is a non-QM wholesale lender. Their DSCR loan programs are tailored for professional real estate investors in California, as well as other states like New York and Florida.
Angel Oak’s DSCR loans work by focusing on helping underserved borrowers who find it difficult to secure conventional financing from larger banks. Instead of requiring tax returns and proof of income, Angel Oak reviews the property’s cash flow and income potential.
Beyond DSCR loans, borrowers can also qualify for bank statement loans and jumbo loans.
Borrowers can apply for an Angel Oak DSCR loan by visiting their website and entering loan details such as the amount, DSCR, and location. A loan officer will reach out to guide borrowers through the next steps in the process.
You can qualify for quick and reliable DSCR financing by generating a quote using our automated pricer.
| Qualification | Requirement |
|---|---|
| Minimum and maximum loan amount | $150,000 to $3,000,000 |
| Type of property | Non-owner occupied single-family, multi-family, and 5-8 unit properties |