Longleaf Lending San Diego California DSCR Loans

DSCR Loans in San Diego California:
Modern Financing for Investors

Veteran-owned lender, offering investors DSCR Loans in San Diego California for no-income-verification, hassle-free long-term financing.

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your San Diego California DSCR Loan Needs

Crafted with savvy San Diego California investors in mind, our Long-Term DSCR Loans enable wealth building through a diverse portfolio of rental properties. By prioritizing your investment property's rental income and cash flow metrics, we simplify the loan process. As a top DSCR lender, enjoy competitive interest rates starting at 6.5%.

No Income Verification
Our no-income-verification process eliminates traditional barriers, focusing on your investment's cash flow to qualify you for a loan. This DSCR-centered approach ensures a hassle-free experience, catering specifically to real estate investors' unique needs.
Tailored to Investment Goals
Whether you're investing in short-term vacation rentals or long-term leases, our DSCR loans are crafted to align with your strategic investment plans. This versatility ensures that whatever your goals, our financing solutions fit perfectly.
Efficiency and Speed
At Longleaf Lending, we value your time. Our San Diego California DSCR loan application and approval processes are optimized for efficiency, ensuring quick, smooth progress from your initial application to the final funding.
Adaptive Financing Solutions
Our financing options are as diverse as the properties you invest in. We're committed to offering flexible DSCR solutions that accommodate a wide range of property types and investor profiles.

Fast and simple

How Longleaf Lending's DSCR Loans Work

DSCR (Debt Service Coverage Ratio) loans are a type of financing used by real estate investors that focus on the income generated by the property rather than the personal income of the borrower. Here’s a simplified explanation:

Calculation.
The DSCR is calculated by dividing the property's Net Operating Income (NOI) by its total annual debt payments. NOI reflects the positive cash flow from the property after operating expenses (mortgage payment, taxes, and insurance) are subtracted.
Criteria for approval.
For San Diego California, we typically require a DSCR greater than 1.0, indicating the investment property generates sufficient cash flow to cover its debt obligations. A common threshold is a DSCR of 1.0 to 1.2 or higher, but it is possible to go lower.
No personal income verification.
The approval process emphasizes the property’s cash flow potential, not the borrower's personal financial situation, allowing for more accessible financing for investors.
Craftsman house

DSCR Loan Terms

Get the financing you need to build wealth with real estate in San Diego California using our DSCR long-term 30-year investor loans.

Terms current as of July 14, 2024

Long Term Rental Loan
Loan Value:
$75,000-$2,000,000
LTV:
Up to 80% (as is)
Interest Rate:
Starting at 6.5%
Points:
2-3
Term:
30 years
Closing Time:
As fast as 2 weeks
FICO:
620 minimum

DSCR Loan Requirements Simplified

Understand DSCR Loan San Diego California Requirements

Securing a DSCR Loan in San Diego California involves a focused evaluation of your experience, liquidity, credit score, and investment property's income potential. Here's a summary of the current requirements you should know before applying for a DSCR Loan in San Diego California:

DSCR Calculation:
Minimum of 0.65x
Credit Score:
620 minimum
Loan Amount:
$75,000 to $3 million
Investor Experience:
none required
US Citizenship:
not required
Documentation:
Some of the key required documents include personal ID, bank statements, entity documentation if using a company (operating agreement, EIN letter, articles of incorporation), lease agreement (if currently leased), appraisal (requrested by us), and the purchase HUD (if purchased in the last 12 months).
Occupancy:
Short or long-term rentals, vacant or occupied
Property Type:
SFR, 2-4 units, multifamily 5+ units, mixed use, or commercial
DSCR Loan San Diego California requirements

Designed for San Diego California investors

Build wealth through real estate with our DSCR Loans in San Diego California

San Diego California's Real Estate Potential: Ideal for 30-Year Rental and Long-Term DSCR Loans

San Diego California long term rental property loans

San Diego, known for its idyllic climate, stunning beaches, and vibrant economy, is a premier destination for real estate investors looking to combine lifestyle with investment opportunity. As one of the most desirable locations in the United States, San Diego boasts a dynamic blend of residential, commercial, and investment properties, catering to a diverse population that values quality of life and economic opportunity.

The city's economy is buoyed by sectors such as military, biotech, tourism, and technology, attracting a skilled workforce and supporting a strong demand for housing. San Diego's appeal is further amplified by its world-class attractions, educational institutions, and commitment to innovation and sustainability, making it a standout market for real estate investment.

Why DSCR Loans Are Ideal for San Diego's Real Estate Market

  • Desirable Location and High Demand: San Diego's desirability ensures a consistent demand for rental and investment properties, underpinned by its natural beauty and quality of life.
  • Economic Vitality: The city's diverse economy creates opportunities for investment across multiple sectors, supporting both residential and commercial real estate growth.
  • Streamlined Financing with DSCR Loans: The adaptability and efficiency of DSCR loans offer a significant advantage in San Diego's competitive real estate market, enabling investors to quickly capitalize on opportunities.

Strategic Advantages of Investing in San Diego

  • Strong Rental Market: San Diego's mix of local residents, military personnel, and international visitors creates a robust rental market, particularly for properties near the coast, universities, and military bases.
  • Growth and Appreciation Potential: The city's limited geographic space and environmental policies contribute to a scarcity of developable land, which can drive property value appreciation.
  • Lifestyle and Economic Diversity: Investments in San Diego tap into a market that values lifestyle as much as economic opportunity, appealing to a broad demographic.

Maximizing Investment Potential with San Diego DSCR Loans

DSCR loans in San Diego enable investors to leverage the city’s unique market conditions through:
  • Diverse Portfolio Opportunities: The San Diego real estate market offers a range of investment possibilities from beachfront properties to urban condos and commercial spaces.
  • Efficient Market Entry and Expansion: The straightforward approval process for DSCR loans facilitates quick entry and expansion within the San Diego market, crucial for keeping pace with its fast-moving real estate trends.
San Diego's real estate market, with its combination of natural beauty, economic diversity, and lifestyle appeal, offers a compelling opportunity for investors. DSCR loans in San Diego provide the strategic financing needed to effectively explore this vibrant market, presenting a streamlined approach that resonates with the investment strategies of modern real estate investors. 

Whether targeting luxury coastal homes, downtown apartments, or innovative commercial spaces, DSCR loans in San Diego offer a foundation for success in one of California's most sought-after cities.

San Diego California DSCR Loan frequently asked questions

How is DSCR Calculated in San Diego California?

How is DSCR calculated in San Diego California?

In San Diego California, the Debt Service Coverage Ration (DSCR) is calculated by dividing a property's rental income by it's expenses. In some cases another method could be used which involves dividing Net Operating Income (NOI) by the Debt Service.

Income: For simplicty purposes, you can think about the top line as the annual rental income for your investment property. In some cases a 90% factor might be applied.

Expenses: There are four main components of the expenses.

  • Principal and Interest
  • Taxes
  • Insurance
  • HOA fees

Here's an example so you can see exactly how DSCR is calculated. To keep things easy, we are assuming there is no principal payment, which you might expect with an interest only period. To learn more about how DSCR loans work, check out our detailed article.

How is DSCR calculated in San Diego California?

About the Longleaf Lending Team

Longleaf Lending is a veteran-owned, direct lending firm with a deep focus on the real estate market. Established in Texas, we bring over two decades of combined experience in real estate, hard money lending, and investment banking.

Funding Experience

Since 2018, we have funded over 600 hard money loans, totaling more than $125 million in loan value.

Expert Leadership

Our leadership includes co-founders Pete Underwood and Matt Weidert, who bring extensive experience from real estate investment, investment banking, and military service.

Commitment to Innovation

We are committed to providing innovative real estate solutions, with a strong focus on integrity and professionalism as a member of the American Association of Private Lenders.

For more about our journey and the dedicated team behind Longleaf Lending, visit our full About Us page.

Submit your San Diego California loan request today

Start your DSCR Loan funding today

Ready to propel your San Diego California rental project forward? Our simple loan request process is designed to get you the funding you need quickly and efficiently.

How the DSCR funding process works with Longleaf Lending

Submit our Online Form

Begin by filling out our short form. It's straightforward and only takes a minute. Provide us with some basic information about you and your project.

Get a Term Sheet in less than 24 Hours

After submitting your form, you'll receive a detailed term sheet from us within 24 hours. This term sheet will outline the terms of your loan and give you the confidence to proceed with your project.

Get Funded

Experience fast and straightforward funding. At Longleaf Lending, you'll work directly with our team throughout the entire process, from application to funding.

Applying does not affect your credit score

Apply for a San Diego California DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.