By David Ghazaryan, NMLS 1486726, iQRATE Mortgages NMLS 1862492
Updated October 28, 2026
Short answer: For a DSCR loan in Sacramento or the Inland Empire (Riverside and San Bernardino counties), look for a private lender that publishes California DSCR terms; requirements vary by lender. Approval rests on the property's rent versus the full payment, so Prop 13 reassessment, rent caps and local short-term rental rules often decide the math. iQRATE, licensed in California, shops 100+ lenders.
DSCR loans are business-purpose loans for non-owner-occupied investment property, not for a home you live in.
Key facts (Oct 2026)
- California, Sacramento County and the Inland Empire, statewide rent cap: the Tenant Protection Act (AB 1482, Civil Code 1947.12) caps annual increases at 5% plus the change in the cost of living, up to 10%, on most rentals more than 15 years old. For increases starting between 8/1/26 and 7/31/27 the Attorney General's chart lists 8.1% for the Riverside Area (Riverside and San Bernardino counties) and 8.6% for all other counties, which includes Sacramento County. The Attorney General lists single-family homes not owned by a corporation or REIT among properties not covered (California Attorney General rent caps, fetched Oct 28, 2026; Attorney General tenants page, fetched Oct 28, 2026).
- City of Sacramento, local rent cap: the Tenant Protection Program (City Code chapter 5.156) limits increases to 5 percent plus the change in CPI, no more than once every 12 months, and effective July 1, 2026 the maximum increase is 8.6%. The chapter exempts single dwelling units, condominium units and units built after February 1, 1995 (City of Sacramento Tenant Protection Program, fetched Oct 28, 2026; Sacramento City Code 5.156, fetched Oct 28, 2026).
- City of Sacramento, short-term rentals: every operator of a stay of 30 days or less needs a short-term rental permit (City Code 5.114). A rental that is not the operator's primary residence may operate for a total of 90 days in a calendar year, after which it may only rent for a 31-day minimum until the next year. Operators collect 12% transient occupancy tax (City of Sacramento short-term vacation rentals, fetched Oct 28, 2026).
- Sacramento County and City of Sacramento, transfer taxes: the county documentary transfer tax is $.55 for each $500 of value, less any loans assumed by the buyer (Sacramento County Clerk/Recorder, fetched Oct 28, 2026), and the City of Sacramento charges $2.75 per thousand on the full value of consideration (City of Sacramento, fetched Oct 28, 2026).
- Riverside County (unincorporated), short-term rentals: the Board of Supervisors adopted Ordinance No. 927.3 on August 25, 2026, effective September 24, 2026. A Short-Term Rental Certificate is required before advertising, is renewed annually, and does not run with the land, so a new owner must apply again; the county page lists updated registration fees of $1,077 initial and $775 renewal effective October 25, 2026 (Riverside County Planning short-term rental program, fetched Oct 28, 2026).
- San Bernardino County (unincorporated), short-term rentals: they are allowed only in the Mountain and Desert Regions in the RL, RS, RM, RC and AG zones, and a Short-Term Rental Permit is required to advertise and rent a unit there (San Bernardino County Land Use Services, fetched Oct 28, 2026; San Bernardino County short-term rentals, fetched Oct 28, 2026).
- California, property tax (Prop 13): the base tax rate is limited to one percent plus voter-approved bond rates, and a property's assessed value can rise no more than two percent a year. A change in ownership, such as a purchase, resets the assessment to current market value (Board of Equalization Publication 800-10, fetched Oct 28, 2026; Board of Equalization change in ownership FAQ, fetched Oct 28, 2026).
- California, lender licensing: the California Financing Law (Fin. Code 22000 et seq.) requires the licensing and regulation of finance lenders and brokers making and brokering consumer and commercial loans, except as specified, and DFPI says CFL licensees making or brokering loans secured by residential real property also appear in NMLS Consumer Access (DFPI, California Financing Law, fetched Oct 28, 2026).
- Federal business-purpose rule: Regulation Z exempts credit extended primarily for a business purpose (12 CFR 1026.3(a)). The CFPB's official interpretation treats credit to acquire, improve or maintain a non-owner-occupied rental as business purpose, unless the owner expects to occupy it for more than 14 days during the coming year (CFPB, fetched Oct 28, 2026).
DSCR loan lender in Sacramento
A DSCR loan qualifies a Sacramento rental on its rent compared with the full payment (PITIA: principal, interest, taxes, insurance and any HOA dues), not on your tax returns or W-2s. In California the tax line resets when you buy: Prop 13 reassesses the property to market value at the change in ownership, so the seller's low tax bill is not your tax bill.
Three local rules shape a Sacramento DSCR file:
- Rent caps: rental units inside city limits fall under the city's Tenant Protection Program (8.6% maximum increase from July 1, 2026) unless exempt. Single dwelling units, condominium units and units built after February 1, 1995 are exempt from the city chapter and may still fall under the statewide AB 1482 cap.
- Short-term rentals: a non-primary-residence short-term rental inside the city is limited to 90 days in a calendar year, so ask each lender whether it will count short-term income on a property limited that way (varies by lender).
- Closing costs: inside city limits the city's $2.75 per thousand transfer tax applies on top of the county documentary transfer tax.
Roseville, Elk Grove and unincorporated Sacramento County set their own short-term rental rules. Our Sacramento mortgage broker page covers loan limits and buyer programs; nearby, see Roseville.
DSCR loans in the Inland Empire (Riverside and San Bernardino counties)
The DSCR math is the same in the Inland Empire, but rent cap and short-term rental rules differ by county and city:
- Statewide cap, different number: Riverside and San Bernardino counties use the Riverside Area cost-of-living data, so the AB 1482 cap for increases starting 8/1/26 through 7/31/27 is 8.1%, compared with 8.6% in Sacramento County.
- Riverside County short-term rentals: in unincorporated areas a Short-Term Rental Certificate is required before you advertise. The application needs the grant deed in your name, and the certificate does not transfer with a sale. Idyllwild and the Temecula Wine Country Policy Area have caps, spacing rules and a two-certificate limit per owner.
- San Bernardino County short-term rentals: in unincorporated areas they are allowed only in the Mountain and Desert Regions, in the RL, RS, RM, RC and AG zones, with a permit.
- Incorporated cities: each city sets its own short-term rental rules; confirm the rule for the exact address before relying on nightly income.
See our Riverside and Inland Empire mortgage broker and Temecula pages for local loan limits, taxes and buyer programs.
How DSCR lenders differ on Sacramento and Inland Empire rentals
Many DSCR lenders lend in California, but requirements vary by lender. Expect these items to differ from one lender to the next:
- Minimum DSCR: some programs set a minimum ratio, some allow a ratio below 1.0, and some publish no minimum at all.
- Maximum loan-to-value: limits differ for purchases, rate-and-term refinances and cash-out refinances, and are often lower for short-term rentals.
- Minimum credit score: published credit minimums differ by lender, and some set a higher minimum for short-term rentals.
- Qualifying rent: some lenders use the lease, some use the appraiser's market rent, and some use the lower of the two or cap how much above market rent they will count.
- Short-term rental income: some lenders count nightly income with the city or county permit or certificate in hand, some use a separate short-term rental program, and some use long-term market rent only.
- California licensing and borrower type: each lender lists the states it lends in and its California license, and whether the loan must close in a business entity varies by lender.
Terms and requirements vary by lender and are subject to underwriting and approval; you will receive the lender's written terms and any required disclosures before you commit.
California property taxes and rent caps in the DSCR math
- Reassessment at purchase: the two percent yearly cap applies only after the purchase resets the base year value, so a buyer of a long-held rental can owe far more tax than the seller paid, which lowers the DSCR.
- Bonds and special assessments count: the one percent base rate is only part of the bill. Voter-approved bonds and any special assessments on the parcel are added, and the lender uses the full tax amount in PITIA.
- Rent caps limit future rent, not today's rent: the lender sizes the loan on current rent. AB 1482 and Sacramento's local program affect how fast rent can rise on an existing tenant, which matters for a refinance plan, not for the purchase DSCR.
- New tenants reset the rent: the Attorney General's rent cap page says that when tenants move out and new tenants move in, the landlord may set the initial rent.
Short-term rentals in Sacramento, Riverside and San Bernardino counties
Before you count nightly income, check three things before you count it: the city or county permit or certificate, the HOA documents if any, and the lender's short-term rental policy. In unincorporated Riverside County you cannot apply for the certificate until you own the property, so ask how the lender treats a purchase before the certificate is issued (varies by lender). If the permit, zone or local cap does not work, plan the loan on long-term rent.
What lenders ask for on a Sacramento or Inland Empire DSCR file
- Rent evidence: a lease, an appraiser's market rent schedule, or both; for short-term rental income, the city or county permit or certificate and the lender's own short-term rental rules (varies by lender).
- Tax and insurance numbers: a tax estimate based on your purchase price plus the parcel's bonds and special assessments, and a landlord insurance quote, since both are in PITIA.
- Entity documents if you close in an LLC, plus a personal guarantee on most programs (varies by lender).
- Reserves and credit: reserve and credit score requirements differ by lender.
How iQRATE handles Sacramento and Inland Empire DSCR files
- Property first: we check the rent, the reassessed tax amount, rent-cap status and any short-term rental permit or certificate, then match lenders that publish terms for that property and lend in California.
- Licensed in California, 100+ lenders: iQRATE Mortgages is licensed in California and shops complex deals across 100+ lenders, but only after a full application and a complete document package, so lenders price a real file.
More on rental financing: DSCR loans, investor loans, portfolio loans, non-QM loans and bank statement loans. California investors can also see California, Los Angeles and San Diego, and our closing costs by state guide.
Looking at a Sacramento or Inland Empire rental? Call iQRATE Mortgages at (702) 766-3744 or start an application, and we will review the property and match it with lenders that fit.
Frequently asked questions
Who is a DSCR loan lender in Sacramento or the Inland Empire?
Private DSCR lenders that publish California programs and hold the California license their business requires. iQRATE Mortgages is licensed in California and shops 100+ lenders to match each Sacramento, Riverside or San Bernardino County rental. Terms vary by lender.
How does Prop 13 affect a DSCR loan on a rental I buy?
Taxes are part of the payment (PITIA) a DSCR lender divides into rent. Under Prop 13 a purchase is a change in ownership, so the assessor resets the property to current market value, and only after that do increases stay at two percent a year or less. Budget taxes on your price plus bonds and special assessments, not on the seller's bill.
Does Sacramento's rent control affect a DSCR loan?
It can affect future rent, not the lender's formula. The City of Sacramento's Tenant Protection Program caps increases at 5 percent plus CPI, 8.6% effective July 1, 2026, but exempts single dwelling units, condominium units and units built after February 1, 1995. Exempt units may still fall under the statewide cap. Check the unit before you buy.
What is the AB 1482 rent cap in Riverside and San Bernardino counties?
For rent increases starting between 8/1/26 and 7/31/27, the California Attorney General's chart lists 8.1% for the Riverside Area, which covers Riverside and San Bernardino counties, compared with 8.6% for all other counties, including Sacramento County. It applies to most rentals more than 15 years old; local rules can be lower.
Can I use short-term rental income on a Sacramento DSCR loan?
Only if the city allows the use and the lender counts it (varies by lender). The City of Sacramento requires a short-term rental permit for stays of 30 days or less and limits a rental that is not the operator's primary residence to 90 days in a calendar year, then a 31-day minimum.
Can I get a DSCR loan for a short-term rental in Riverside or San Bernardino County?
Check the local rule first. Unincorporated Riverside County requires a Short-Term Rental Certificate that does not run with the land, and you cannot apply until the grant deed is in your name. Unincorporated San Bernardino County allows short-term rentals only in its Mountain and Desert Regions, with a permit. City rules differ.
Do I need a California license to get a DSCR loan?
No, the borrower does not. The lender and the broker need the license their business requires; the California Financing Law covers finance lenders and brokers making and brokering consumer and commercial loans, except as specified. You can look up iQRATE Mortgages on NMLS Consumer Access under NMLS 1862492.
Are DSCR loans in California covered by consumer mortgage rules?
Generally not. Regulation Z exempts credit extended primarily for a business purpose, and the CFPB's official interpretation treats credit to buy, improve or maintain a non-owner-occupied rental as business purpose. If you expect to live in the property more than 14 days in the coming year, it is not treated as non-owner-occupied.
Business-purpose loans for non-owner-occupied investment property only; not for owner-occupied homes. Credit extended primarily for a business purpose is exempt from Regulation Z under 12 CFR 1026.3(a). Information is educational, current as of October 28, 2026, and subject to change; it is not a commitment to lend. Terms and requirements vary by lender and borrower qualification and are subject to underwriting and approval. No interest rate, APR or payment is quoted in this post. Property tax, rent cap and short-term rental rules are summarized from public agency pages; consult a CPA or attorney about tax, entity and legal questions. iQRATE Mortgages, NMLS 1862492. David Ghazaryan, NMLS 1486726. NMLS Consumer Access. Equal Housing Opportunity. We do business in accordance with the federal Fair Housing Act and the Equal Credit Opportunity Act.
