By iQRATE Mortgages, NMLS 1862492 · Reviewed by David Ghazaryan, Mortgage Broker, NMLS 1486726 · Updated November 9, 2026 · Long Beach figures checked November 4, 2026
Quick answer: A Long Beach DSCR loan is a mortgage for a non-owner-occupied rental. It qualifies on the property's rent divided by its full monthly payment (PITIA), not on your tax returns.
Long Beach has more investor buyers than most of LA County. In 2025, 20.7% of Long Beach purchase loans were for investment homes, against 16.3% countywide. 13.3% of the city's homes sit in 2- to 4-unit buildings.
Local and state rules move a Long Beach ratio: Prop 13 tax on your price, flood insurance in parts of Naples and the Peninsula, condo project reviews, short-term rental limits and AB 1482 rent limits. Non-primary rentals are capped at 800 citywide.
iQRATE Mortgages (NMLS 1862492) is licensed in California and compares DSCR lenders, more than 100 on complicated deals.
Start your application · Call or text (702) 766-3744
Ratings: David Ghazaryan has 5.0 stars from 87 reviews on Experience.com (October 2026). Google 5.0 from 77 reviews. Yelp 5.0 from 51 reviews. Zillow 5.00 from 9 reviews.
Investor loans are for business purposes only. Not all borrowers qualify. Terms subject to underwriting and change. This page is not a commitment to lend. iQRATE Mortgages LLC NMLS 1862492. David Ghazaryan NMLS 1486726. Equal Housing Opportunity.
What is a DSCR loan on a Long Beach rental?
A DSCR loan is a mortgage for an investment property. It qualifies on the property's rent instead of your personal income. DSCR stands for debt service coverage ratio.
The lender divides the monthly rent by the full monthly payment, called PITIA. That is principal, interest, property taxes, insurance and HOA dues.
DSCR = monthly rent ÷ monthly PITIA
A ratio of 1.00 means the rent covers the payment exactly. At 1.25, the rent is 25% more than the payment. Below 1.00, the rent falls short. Some lenders still lend there, at a higher rate.
You generally don't send tax returns, W-2s or pay stubs. Lenders still check your credit, assets, reserves and the appraisal.
A DSCR loan is business-purpose financing for non-owner-occupied investment property only. You can't live in the home, even in one unit of a duplex.
1.00 means the rent equals the payment.
What does the ratio leave out?
It uses gross rent. Vacancy, management, turnover and repairs aren't in the math. A property can pass the lender's test and still lose money in a bad year. Underwrite your own deal separately.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
Why is Long Beach different for a DSCR investor?
Long Beach is a renter-heavy city with old homes and a big share of small apartment buildings. Those three facts shape the rent number and the appraisal on a DSCR file. The table below keeps only the figures that bear on a rental loan.
| Long Beach fact | Long Beach | LA County | Why it matters on a DSCR file |
|---|---|---|---|
| Investment-home share of 2025 purchase loans (HMDA) | 20.7% | 16.3% | Investor financing is common here |
| 2- to 4-unit share of 2025 purchase loans (HMDA) | 10.3% | 6.1% | Small multifamily is a regular purchase |
| Investor loans among 2025 Long Beach 2- to 4-unit purchase loans (HMDA) | 120 of 222 | — | Most of those loans (120 of 222) were investor loans |
| Homes in 2- to 4-unit buildings (ACS 2020-2024) | 13.3% | 8.5% | 2- to 4-unit loans come up often here |
| Owner-occupied share (ACS 2020-2024) | 41.2% | 45.9% | A renter-heavy city |
| Homes built before 1960 (ACS 2020-2024) | 52.3% | 42.6% | Older homes can bring appraisal notes |
| Median gross rent (ACS 2020-2024) | $1,871 | $1,954 | Covers all rentals, including older apartments |
| Cash-out refinance denial rate, 2025 (HMDA) | 24.1% | 25.8% | Cash-out applications were denied about twice as often as purchases (24.1% vs 11.7%) |
| Purchase denial rate, 2025 (HMDA) | 11.7% | 12.3% | Compare with the cash-out rate above |
The HMDA figures cover the 113 census tracts whose center sits inside Long Beach city limits. Signal Hill, a separate city in the middle of Long Beach, is left out. For home prices, loan sizes and owner-occupied loans, see our Long Beach mortgage broker page.
Two more 2025 HMDA facts matter to investors. First, 13.8% of Long Beach purchase loans had an adjustable rate and 8.0% had interest-only payments. Most of those were investor or larger loans.
Second, when loans were denied, debt-to-income was the first reason in 35.4% of cases. Collateral, which usually means the appraisal, was 16.7%. A DSCR loan doesn't use your personal debt-to-income ratio. It leans hard on the appraisal instead.
Which Long Beach areas and ZIPs does iQRATE lend in?
Long Beach mixes downtown high-rise condos, 1920s Craftsman bungalows in Bixby Knolls and Cal Heights, and waterfront homes in Naples and Belmont Shore. Parts of Naples and the Peninsula are in FEMA flood zones.
| Areas and ZIPs we lend in | ZIP |
|---|---|
| Belmont Shore, Naples and the Peninsula | 90803 |
| Bixby Knolls and Cal Heights | 90807 |
| Los Altos | 90815 |
| Lakewood Village | 90808 |
| Downtown and the East Village | 90802 |
| Alamitos Beach | 90802, 90814 |
| North Long Beach | 90805 |
iQRATE Mortgages is based in Las Vegas at 6360 S Rainbow Blvd and is licensed in Nevada, California, Texas and Florida. Long Beach files close with local escrow and title.
Our closed Long Beach work on record is a conventional rate-and-term refinance on a $252,000 loan in September 2021. That was not a DSCR loan. The DSCR files further down this page are from Las Vegas and other areas, and they are labeled that way.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
Which Long Beach costs go into your PITIA?
The rent side of the ratio gets most of the attention. The payment side is where Long Beach rules show up.
How does Prop 13 change the tax line?
Proposition 13 reassesses a home to its purchase price when it sells. The tax is 1% plus local voter-approved levies, usually about 1.1–1.3% of the price in total. Assessed value then rises at most 2% a year. Expect a supplemental tax bill after you buy.
The California Board of Equalization explains change in ownership. For a DSCR file, this means one thing: build the payment on the tax for your price, not the seller's older bill.
When does flood insurance enter the payment?
Parts of Naples, the Peninsula and areas near the Los Angeles River are in FEMA flood zones that require flood insurance. That premium goes straight into PITIA and lowers the ratio. Look up the address on the FEMA Flood Map Service Center before you offer.
What about condo insurance and HOA dues?
A condo needs an HO-6 policy and a building the lender will accept. The lender reviews the building budget, reserves, insurance and any lawsuits. HOA dues count in PITIA, dollar for dollar.
Does the transfer tax affect the ratio?
No, but it affects your cash to close. The total transfer tax on a Long Beach sale is $1.10 per $1,000. Long Beach charges $0.55 per $1,000, but it is credited against the county tax, so the total does not go up. That is $962.50 on an $875,000 home.
The City of Los Angeles adds $4.50 per $1,000 on top (see our Los Angeles mortgage broker page). The contract decides who pays, and in LA County the seller usually does. Compare states on our closing costs by state page.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
How do Long Beach rental rules affect the rent a lender counts?
A lender sizes a DSCR loan on the rent the property can actually earn. In Long Beach, three sets of rules shape that number.
Short-term rentals. Every short-term rental needs a City registration. Non-primary rentals are capped at 800 citywide. Un-hosted stays in a primary home are limited to 90 nights a year. Right now the City has paused new registrations during a system change.
That makes a DSCR loan built on nightly income hard to support here. Some lenders accept an AirDNA income report, with heavy scrutiny. Many use long-term rent only. Plan on qualifying with the appraiser's long-term rent opinion. Check current rules with the City of Long Beach before you buy.
Rent limits. California's Tenant Protection Act (AB 1482) caps yearly rent increases on many older rentals. It also requires just cause to end many tenancies. Long Beach adds its own tenant rules. If you buy a building with tenants in place, the ratio rests on today's rent. Don't count on a rent bump after closing to fix it.
Older buildings. 94,879 Long Beach homes were built before 1960. Older homes can bring appraisal notes about roofs, wiring, foundations or unpermitted units. Those notes can affect the appraisal.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
How do lenders decide what a Long Beach rental rents for?
On a DSCR loan, the appraisal sets two numbers that decide your loan: the value and the market rent. The rent opinion usually comes on Fannie Mae Form 1007, the Single-Family Comparable Rent Schedule. The appraiser compares your property with nearby rentals.
Under the redesigned agency appraisal report (UAD 3.6), market rent moves into the report itself. That report is required for new agency appraisals submitted on or after November 2, 2026. DSCR lenders set their own requirements, so you may see either format.
Some lenders use the signed lease. Some use the appraiser's market rent. Some use the lower of the two. Ask which rule applies before you pay for the appraisal.
Send realistic rent comps before you offer, and provide every lease on a 2–4 unit property. On a 2–4 unit building, the ratio uses the combined rent from all units against one PITIA.
Your rate and down payment are tentative until the appraiser's value and rent opinion come in.
"You can close a DSCR deal with just about any problem as long as you put a bit more down. That's why we always tell clients the rate and down payment are tentative until the appraiser's value and rent come in."
David Ghazaryan, from iQRATE's DSCR loans guide
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
How much rent do you need for each DSCR target?
You can turn the formula around. Divide the rent by the target ratio to find the highest payment it supports. Multiply the payment by the target to find the rent you need.
Simple math: rent divided by the target DSCR.
Simple math: rent divided by the target DSCR.
Simple math: payment times 1.25.
To run your own numbers, use iQRATE's mortgage calculators. Put the full PITIA in the payment box: Long Beach tax on your price, the landlord policy, any flood or HO-6 premium, and HOA dues.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
What DSCR terms does iQRATE see from lenders?
DSCR loans aren't standardized like Fannie Mae or FHA loans. Each lender sets its own rules, so the same property can get a "no" from one lender and a good offer from another. For an overview of every non-QM option we place, see non-QM loans.
These are example terms from DSCR lenders we place loans with, as of October 2026:
| Term | Example from lenders we place loans with | How lenders differ |
|---|---|---|
| Minimum DSCR | 0.75 | Some lenders stop at 1.00 |
| Ratio of 0.75 to 0.99 | No extra down payment; a higher rate | The rate add-on differs by lender |
| Minimum credit score | 680 | Minimums differ by lender |
| Loan amounts | $75,000 to $5,000,000 | Very small and very large loans narrow the list |
| Reserves | 12 months of PITIA; cash-out proceeds can count on a refinance | Some lenders ask for less |
| Prepayment penalty | 5, 4, 3, 2 or 1 year, or none; our clients pick 2 years most often | Each term buys a different rate |
| Interest-only | Offered by one of our lenders | Not every lender offers it |
| LLC vesting | Allowed by some of our lenders; a personal guarantee is always required | Entity rules differ |
| First-time investors | Some lenders allow it, with extra occupancy review | Ask several lenders |
| Short-term rentals | Some lenders accept an AirDNA income report, with heavy scrutiny | Many use long-term rent only |
| Cash-out seasoning | At least 6 months on title, following Fannie Mae's rule; some non-QM lenders allow cash-out right after an all-cash purchase | Pricing for exceptions differs by lender |
Not every lender offers every option. Terms change often and depend on credit, property and lender approval. This is not a rate quote or a commitment to lend.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
What are your options if the Long Beach ratio is below 1.00?
You have more options than walking away:
- Put more money down. A smaller loan lowers the payment and raises the ratio.
- Take a 0.75–0.99 program. With our example lender there's no extra down payment, just a higher rate.
- Use a no-ratio loan if nothing else works. The rate is higher. See no-ratio DSCR loans.
- Consider interest-only. It raises the ratio, but you aren't paying down principal.
- Buy down the rate. It costs cash at closing. Seller or builder credits can sometimes pay for it.
- Pick a different property. Two homes at the same price can rent very differently. Lower HOA dues or insurance move the ratio too.
- Walk away. If the deal only works on optimistic rent, we'll say so before your earnest money is at risk.
If the appraiser's rent comes in low after you apply, the usual fixes are the same: switch to the 0.75–0.99 tier, or lower the payment with a buydown or a bit more down.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
How does a DSCR cash-out refinance work on a Long Beach rental?
A DSCR cash-out refinance pulls equity out of a rental you own. It qualifies on the rent. The new, larger payment must still clear the lender's ratio floor, so the ratio and the cash you take out pull against each other. For other refinance options, see our refinance page.
- Standard seasoning: at least 6 months on title, following Fannie Mae's six-month rule.
- After an all-cash purchase: Fannie Mae calls this delayed financing. Some of our non-QM DSCR lenders offer cash-out with no seasoning after an all-cash purchase. You must document the funds you used to buy the property, and the lender may price the exception into the rate.
- Reserves: the cash-out proceeds can count toward the reserve requirement at one of our lenders.
- Maximum loan-to-value: varies by lender and credit score. We quote it on your actual file.
- Check your current loan first. If your existing DSCR loan has a prepayment penalty, refinancing early may trigger it.
Cash-out files face a higher bar in Long Beach's public lending data.
| 2025 denial rate by loan purpose (HMDA) | Long Beach | LA County |
|---|---|---|
| Home purchase | 11.7% | 12.3% |
| Refinance | 21.5% | 22.1% |
| Cash-out refinance | 24.1% | 25.8% |
These figures cover all loan types, not only DSCR loans. They still show why a clean file, a realistic value and documented rent matter on a cash-out.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
How do DSCR prepayment penalties work?
A DSCR loan can carry a prepayment penalty. With the lenders in our example, you choose 5, 4, 3, 2 or 1 year, or none. Each term buys a different rate. A longer penalty generally buys a lower rate, and no penalty costs the most. A step-down structure, such as 5-4-3-2-1, shrinks the charge each year until it ends.
Why can a DSCR loan carry a penalty at all? Regulation Z limits prepayment penalties on most consumer mortgages. But credit extended primarily for a business purpose, such as a loan on a non-owner-occupied rental held as an investment, is exempt from Regulation Z (12 CFR 1026.3(a)). That is also why DSCR loans are available only on investment property.
| Your plan | Option that often fits | Why |
|---|---|---|
| Buy and hold for 7 to 10 years or longer | 5-4-3-2-1 or a 3-year penalty | You are unlikely to pay it, and the longer penalty usually buys a lower rate |
| Hold 3 to 5 years, then sell or 1031 exchange | 3-2-1 or 2-1 | Balances rate against the chance you sell early |
| Refinance again once the value rises | 2-1, 1 year or none | A refinance inside the penalty period triggers the charge |
| Expecting rates to fall and planning to refinance | 1 year or none | A higher rate now can cost less than a penalty later |
| Unsure | 2 years | The choice our clients make most often |
What should you ask about the penalty?
- Does the penalty apply to a sale as well as a refinance?
- Does the note let you pay down part of the balance each year without a penalty?
- Is the penalty a declining percentage or a different formula?
- Does the rate you were quoted assume a particular penalty?
Get each answer in writing on the term sheet. Read the prepayment rider in your note before you sign.
"A loan that saves you money today can become expensive if you need to refinance or sell before a prepayment penalty expires."
David Ghazaryan
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
Can you close a Long Beach DSCR loan in an LLC?
Yes, with some lenders. Some of our DSCR lenders let you take title in an LLC, which is one reason investors choose DSCR over conventional financing. The lenders we use for LLC closings always require a personal guarantee.
Expect to provide:
- Articles of organization
- The operating agreement
- An EIN letter from the IRS (see the IRS EIN page)
- Proof the entity is in good standing
Set up the LLC before closing, not during underwriting. Late entity changes are a common cause of delays. Talk to your attorney and CPA about whether an LLC makes sense for you.
A real LLC file (location not stated in our file record): In 2024 an investor was refinancing a rental owned in an LLC with a DSCR loan. We expected a $1 million value. The appraisal said $870,000. The loan started well below the value, so there was room to spare. We raised it from $400,000 to $435,000. The loan got bigger after the low appraisal, and final pricing improved.
The value came in $130,000 low. The loan still went up.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
Can you use a DSCR loan in a 1031 exchange?
Yes. A 1031 exchange lets you defer capital gains tax by selling one investment property and buying another. You generally have 45 days to identify the replacement and 180 days to close, per the IRS like-kind exchange tips.
DSCR loans fit because they don't re-document your personal income. Give us your sale date and both deadlines on day one. Get pre-approved on the ratio before you identify properties. Coordinate with your qualified intermediary and tax advisor. This is general information, not tax advice.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
Which Long Beach property types qualify for a DSCR loan?
| Property type | How lenders look at it | What to watch in Long Beach |
|---|---|---|
| Single-family home or townhome | The most widely accepted | Older homes can bring appraisal notes on roofs, wiring, foundations or unpermitted units |
| Warrantable condo | Widely accepted | Building budget, reserves, insurance and any lawsuits are reviewed; HOA dues count in PITIA |
| Non-warrantable condo or condotel | Accepted by fewer lenders; usually needs more down | Project review can add time |
| 2–4 units | The combined rent from all units is measured against one PITIA | Existing leases matter; AB 1482 may limit raises |
| 5–8 units and mixed-use | Some lenders offer residential-style DSCR programs | Larger properties move into commercial lending; see DSCR loans for 5-8 unit small multifamily |
| Short-term rental | Some lenders, with heavy scrutiny | City registration required; new registrations paused; non-primary rentals are capped at 800 citywide |
Tell us the property early. It changes which lenders can look at it.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
Is a DSCR loan or a conventional loan better for a Long Beach rental?
| Question | DSCR loan | Conventional investment loan (Fannie Mae) |
|---|---|---|
| How you qualify | The property's rent compared with PITIA | Your personal income and debt-to-income ratio |
| Rent from the property | The full rent drives the ratio | Usually counted at 75% of lease or market rent |
| Tax returns and W-2s | Generally not required | Required |
| Title in an LLC | Allowed by some lenders, with a personal guarantee | Generally not; title in your personal name |
| Financed-property limit | Set by each lender, not Fannie Mae's 10-property limit | Up to 10 financed properties |
| Prepayment penalty | Common: 1 to 5 years, or none at a higher rate | None |
| Typical pricing | Usually higher | Usually lower |
| Reserves | 12 months at one of our lenders | Depends on the number of financed properties |
For conventional reserve rules, see Fannie Mae's minimum reserve requirements. DSCR lenders set their own.
Choose conventional if your documented income carries the payment, you're under the property limit and you don't need an LLC. It's usually cheaper. Choose DSCR if your returns understate your income, your debt-to-income ratio is maxed out, you're past the limit, or you want an entity. We can price both side by side.
If you later apply for a conventional loan, Fannie Mae counts the financed one- to four-unit properties you own, whatever kind of loan is on them. The DSCR loan itself is not subject to that limit. Own 10 or more financed rentals? See loans for serial real estate investors.
DSCR loan amounts are set by each lender, not by the conforming limit. For comparison, the 2026 conforming limit for a one-unit home in Los Angeles County is $1,249,125, per FHFA's 2026 conforming loan limit announcement.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
What other ways can you finance a Long Beach rental?
| Option | How you qualify | Typical use | Main trade-off |
|---|---|---|---|
| DSCR loan | Property rent vs. full payment | Long-term rentals, LLC buyers, self-employed and full-time investors | Larger down payment and a prepayment penalty in exchange for no income documents |
| No-ratio DSCR loan | Credit, down payment and reserves; no ratio test | Homes whose rent does not cover the payment | Higher rate |
| Conventional investment loan | Personal income, tax returns and DTI | Your first few rentals when your returns show strong income | No more than 10 financed properties; rent usually counted at 75% |
| Bank statement loan | Deposits on 12 or 24 months of bank statements | Self-employed buyers, including some investment purchases | Income review still applies |
| Bridge or fix-and-flip loan | The property and your plan; short term | Buying a home that needs work before it can rent | Short term, usually interest-only, then refinance or sell |
| Blanket loan | Several properties under one loan | Investors consolidating a portfolio | Releasing one property usually requires a paydown |
| Foreign national DSCR loan | The property's rent; U.S. credit not always required | Non-U.S. residents buying rentals | Larger down payment and more documentation of funds |
Investing elsewhere in California too? See DSCR loans in Sacramento and the Inland Empire. Building a portfolio? See how we work with real estate investors.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
What do real iQRATE DSCR files show?
These are real files from David Ghazaryan's desk. None is a Long Beach closing. Each is labeled with the location the file record states. Names and details are removed, and figures are rounded. David has been a mortgage broker for more than 15 years.
The builder's lender said no (Las Vegas new construction)
A client came to us after the financing on her brand-new Las Vegas investment property fell apart. She had found a move-in-ready home that another buyer had failed to close on. To receive the builder's incentives, she was required to apply through the builder's preferred lender. She did exactly what the builder asked. Then the builder's lender denied her loan.
She had satisfied the builder's requirement to apply through its lending channel. The builder ultimately agreed to honor the incentives if she obtained outside financing. We arranged a DSCR mortgage using the property's rental income and applied the builder incentives toward a rate buydown. The resulting mortgage had a debt-service coverage ratio of approximately 1.00. We closed in less than three weeks.
"The lesson I took from that transaction is that a lender's denial doesn't necessarily mean a good investment opportunity is dead. Sometimes the solution is understanding the purchase contract, preserving the buyer's negotiating position, and choosing a financing program that fits the actual investment."
David Ghazaryan
Rent that covered only 83% of the payment (Las Vegas condo)
In fall 2023 an investor wanted to pull cash out of a Las Vegas condo rental with a DSCR loan. The rent covered only about 83% of the new payment, a DSCR of 0.83. The appraised value was $280,000. Low leverage did the heavy lifting. The cash-out refinance funded in fall 2023.
The rent paid 83 cents of every payment dollar.
A 200% debt ratio that did not matter (Las Vegas rental)
In fall 2023 a buyer with strong credit wanted a Las Vegas rental home near $420,000. Her income came mostly from capital gains and dividends. Run through a full-doc loan, her debt ratio came out above 200%. We stopped looking at her income and looked at the house. The rent produced a DSCR of 1.18. She closed on a DSCR loan in fall 2023.
Her full-doc ratio was over 200%. On rent, the property covered itself.
Two condos, one closing day (southwest Las Vegas)
In fall 2024 a Las Vegas investor with five or more rentals bought two condos in the same southwest Las Vegas complex and closed both on the same day. The appraiser's rent pushed the ratio down to 0.82, below 1.0. The loan stayed approved because the down payment and reserves carried it.
A small rental, far from home (Midwest)
A Nevada investor's LLC owned a $160,000 single-family rental in the Midwest. Many lenders will not touch a balance that small. We placed it with a small-balance DSCR program. The appraisal came in $50,000 high, with a DSCR of 1.45. Submission to clear to close took 13 days.
A clean small-balance file moved in 13 days. A two-condo project review took about five weeks.
An investor from overseas (Las Vegas rental)
In spring 2023 a past client referred a foreign-national investor who wanted a Las Vegas rental home near $435,000. The buyer's funds sat in overseas bank accounts. We used a DSCR loan that qualifies on the home's rent and documented the funds with overseas bank statements. The purchase closed in spring 2023, and pricing improved between the first and the final approval.
The files at a glance
| File | Location stated | When | What nearly stopped it | Result |
|---|---|---|---|---|
| Builder incentives purchase | Las Vegas | Not stated | Builder's lender denied the loan | DSCR about 1.00; closed in under 3 weeks |
| Condo cash-out | Las Vegas | Fall 2023 | Ratio of 0.83 | Funded with low leverage |
| Rental near $420,000 | Las Vegas | Fall 2023 | Full-doc debt ratio above 200% | Qualified on rent at 1.18 |
| Two condos | Southwest Las Vegas | Fall 2024 | Appraiser's rent gave 0.82 | Both closed the same day |
| LLC refinance | Not stated | 2024 | Appraisal $130,000 below expected | Loan raised from $400,000 to $435,000 |
| Small-balance rental | Midwest | Not stated | $160,000 property, small balance | DSCR 1.45; clear to close in 13 days |
| Foreign-national purchase | Las Vegas | Spring 2023 | Funds in overseas accounts | Closed; pricing improved |
Two files closed with rent below the payment. Equity carried them.
These are real files. Names and details are removed, and figures are rounded to protect client privacy. Past results do not guarantee future outcomes. All loans are subject to credit approval. Investor loans are for business purposes only. Equal Housing Opportunity.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
How does iQRATE shop a Long Beach DSCR loan?
Each DSCR lender sells its loans to different secondary-market investors and uses its own risk rules. A "no" from one lender often isn't the last word.
- We build the scenario once: property, price, expected rent, taxes, insurance, HOA dues, your credit and how you'll hold title.
- We ask DSCR lenders for their terms on your actual file: ratio floor, down payment, rate, prepayment penalty options, reserves and how each counts the rent.
- We pick the best fit for your goal: the lowest rate if you have the cash, or the lowest down payment if you'd rather keep cash in the bank.
- We show you the trade-offs before you commit, including the prepayment penalty and what the ratio does to pricing.
"On a complicated deal, I'll personally email more than 100 lenders and sift through what comes back. It's a lot of work, so I do it once the client is committed, with a full application and documents in hand."
David Ghazaryan
David is a real estate investor himself and has prepared more than 6,000 tax returns. Investor files get read the way an owner reads them: rent, taxes, insurance and HOA dues first, then the loan.
"One thing being a real estate investor has taught me is that getting a loan approved and making a good investment are two different things. ... They focus on the interest rate. I look at the entire transaction: cash invested, monthly carrying costs, reserves, prepayment penalties, and the exit strategy."
David Ghazaryan
What should you ask any DSCR lender before you apply?
- What is your minimum DSCR, and which rent figure do you use: lease, appraiser's market rent or the lower of the two?
- Do you accept short-term rental income, and what documentation do you need?
- Will you lend on this condo project, and does it need a project review?
- Can I close in an LLC, and what personal guarantee do you require?
- What prepayment penalty options do you offer, and how does each change the terms?
- How many months of reserves do I need, and can cash-out proceeds count?
- Is cash-out allowed right after an all-cash purchase, or is there a seasoning period?
- What is your NMLS number, and are you licensed in California?
If a lender can't answer these in writing, keep shopping.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
How does a Long Beach DSCR file move from offer to closing?
- Send us the scenario: address, price, expected rent, the tax estimate on your price, an insurance quote (including flood or HO-6 if needed), HOA dues and how you'll hold title.
- We run the ratio conservatively, with full PITIA and realistic rent, so you know early whether the deal works.
- We shop DSCR lenders once your application and documents are in, and get the key terms before you commit.
- Application and credit. No tax-return package.
- Appraisal with rent analysis. Ordered right away. Your rate and down payment are tentative until it comes back.
- Underwriting: assets, reserves, insurance, entity documents and the final ratio from the appraisal.
- Clear to close and funding with local escrow and title.
The appraisal is usually the longest step. The most common delays are a low appraised rent, a late insurance quote and LLC paperwork that isn't ready.
What documents do you need?
| Item | Purchase | Rate-and-term refinance | Cash-out refinance | Buying or holding in an LLC |
|---|---|---|---|---|
| Photo ID and credit authorization | Yes | Yes | Yes | Yes, for each guarantor |
| Purchase contract | Yes | No | No | Contract in the LLC's name, or an assignment the lender accepts |
| Lease or rent evidence | Lease if tenant-occupied; otherwise the appraiser's rent schedule | Current lease and proof of rent received | Current lease and proof of rent received | Same as the transaction type |
| Bank or brokerage statements | Down payment, closing costs and reserves | Reserves | Reserves (cash-out may count at some lenders) | Accounts may be in the LLC or personal names |
| Mortgage statement | On your other financed properties | On this property and others | On this property and others | Same |
| Insurance | Landlord (dwelling fire) policy quote | Current policy | Current policy | Policy naming the LLC as insured |
| HOA information | HOA contact and dues; condo questionnaire for condos | Current dues | Current dues | Same |
| Entity documents | Not needed if buying in your name | Not needed unless vested in an entity | Not needed unless vested in an entity | Articles of organization, operating agreement, EIN letter, proof the entity is in good standing |
No tax returns, W-2s or pay stubs are needed for a DSCR loan. Lenders may ask for more.
Next step: ready to send a scenario? Call or text (702) 766-3744, apply now or schedule a free consultation.
Stop Using Tax Returns for Your Next Business Loan (video)
David Ghazaryan explains loan options that do not rely on tax returns. DSCR loans are business-purpose loans for investment property only. More iQRATE videos are on our videos page.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
What do clients say about iQRATE Mortgages?
These are real 5-star reviews, quoted word for word. Lydia Z. and Rita S. are California reviewers. The reviews describe working with David Ghazaryan and the iQRATE team overall, not a DSCR loan in Long Beach. None is a promise about your loan.
"Andrei and David were so great! They're helpful and communicated everything with me through the whole process. I am so pleased and look forward to using iqrate for my future investment properties. 10/10 Will be reccomending to friends."
— Kassandra Arthur, review on Google
"David and Andrei and team were very knowledgeable and really helped in the whole process. Even though the economy is going through a rough time they were able to explain every detail and really looked out for our best interest! I would highly recommend their team as they will find a way to get it done!"
— Lydia Z. (Menifee, CA), 5-star review on Yelp
"Very efficient and transparent service. They go above and beyond to deliver the loan closure on time even in a very tight time line. Also very resourceful and knowledgeable staff. I'll go to them again next time I need a loan."
— Rita S. (Los Angeles, CA), 5-star review on Yelp
iQRATE client review screenshots
Screenshots of 5-star Google, Yelp and Zillow reviews of iQRATE Mortgages as posted. None of these reviews describes a Long Beach DSCR loan, and none is identified as a Long Beach client.
Read more of David's reviews on Experience.com, or see our reviews page.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
Long Beach DSCR loan FAQs
Is investor financing common in Long Beach?
Yes. In 2025, 20.7% of Long Beach first-lien purchase loans were for investment homes, against 16.3% across LA County. 10.3% of purchase loans were on 2- to 4-unit buildings, versus 6.1% countywide, and 120 of those 222 loans were investor loans. These HMDA figures count all investment-home loans, not only DSCR loans.
Do I need tax returns for a Long Beach DSCR loan?
Generally no. Personal tax returns, W-2s and pay stubs are usually not required. You will still need a credit check, asset statements for the down payment and reserves, an appraisal with a rent analysis, and proof of insurance.
Which rent figure will the lender use on a Long Beach rental?
It depends on the lender. Some use the signed lease. Some use the appraiser's market rent from Form 1007 or the new UAD 3.6 report. Some use the lower of the two. Ask before you pay for the appraisal.
Can I qualify a Long Beach DSCR loan on short-term rental income?
It is hard right now. Every short-term rental needs a City registration, non-primary rentals are capped at 800 citywide, and the City has paused new registrations during a system change. Plan to qualify on long-term rent.
How does AB 1482 affect a DSCR loan on a Long Beach building with tenants?
AB 1482 caps yearly rent increases on many older rentals and requires just cause to end many tenancies, and Long Beach adds its own tenant rules. The lender sizes the loan on today's rent, so a planned rent increase may not come soon enough to help the ratio.
Do I need flood insurance on a Naples or Peninsula rental?
Possibly. Parts of Naples, the Peninsula and areas near the Los Angeles River are in FEMA flood zones that require flood insurance. The premium goes into PITIA and lowers the ratio, so check the FEMA flood map before you offer.
Will my property tax match the seller's bill?
Usually not. Prop 13 reassesses the home to your purchase price, at 1% plus local levies, usually about 1.1–1.3% in total. Expect a supplemental bill after closing. Build the DSCR payment on your own tax.
Can a DSCR loan finance a Long Beach condo?
Often. Warrantable condos are widely accepted. Non-warrantable condos and condotels are accepted by fewer lenders and usually need more down. The lender reviews the building budget, reserves, insurance and any lawsuits.
Can a DSCR loan finance a Long Beach duplex or fourplex?
Yes. The ratio uses the combined rent from all units against one PITIA, and existing leases matter. Provide every lease.
What DSCR ratio do I need?
It depends on the lender. Many programs look for 1.00 or higher. As of October 2026, one lender we place loans with accepts ratios from 0.75 to 0.99 with no extra down payment, at a higher rate.
How much rent do I need for a 1.25 DSCR?
Multiply the full monthly payment by 1.25. A $2,000 PITIA needs $2,500 in rent, a $3,000 PITIA needs $3,750, and a $4,000 PITIA needs $5,000.
Can I close a Long Beach DSCR loan in an LLC?
Yes, with some lenders. The lenders we use for LLC closings always require a personal guarantee. Expect to provide articles of organization, an operating agreement, an EIN letter and proof the entity is in good standing.
Can a first-time investor get a DSCR loan?
Some lenders allow it, with extra occupancy review. The lender must be satisfied you won't move into the property. If one lender says no, another may say yes, so we ask several.
Why are Long Beach cash-out refinances harder to get?
In 2025 HMDA data, Long Beach cash-out refinances were denied 24.1% of the time, against 11.7% for purchases. LA County's rates were 25.8% and 12.3%. On a DSCR cash-out, the larger new payment must still clear the lender's ratio floor.
Why do DSCR loans have prepayment penalties?
Regulation Z limits prepayment penalties on most consumer mortgages, but credit extended primarily for a business purpose is exempt. With the lenders in our example, you choose 5, 4, 3, 2 or 1 year, or none, and each term buys a different rate.
Does a DSCR loan count toward Fannie Mae's 10-financed-property limit?
If you later apply for a conventional loan, Fannie Mae counts your financed one- to four-unit properties, whatever loan is on them. The DSCR loan itself is not subject to that limit.
Can I use a DSCR loan in a 1031 exchange?
Yes. DSCR loans don't re-document your personal income, which helps on the 45-day and 180-day exchange timeline. Coordinate with your qualified intermediary and tax advisor.
Can I live in a Long Beach home I buy with a DSCR loan?
No. A DSCR loan is business-purpose financing for non-owner-occupied investment property only, including one unit of a duplex. For a home you will live in, see our Long Beach mortgage broker page.
How fast can a Long Beach DSCR loan close?
It depends on the appraisal, the insurance quote and the entity documents. In past iQRATE files outside Long Beach, a clean small-balance file reached clear to close in 13 days, and a returning client's purchase closed in under 3 weeks.
Why doesn't this page list DSCR rates?
Pricing changes daily. What moves it most: credit score and loan-to-value, the ratio and the prepayment penalty, loan size, property type, features such as interest-only or cash-out, and points. See our rates page.
Get started
Tell us about the Long Beach property. We'll run the ratio with full PITIA, shop DSCR lenders and tell you plainly whether the deal works.
Schedule a free consultation · Call or text (702) 766-3744 · Apply now
For the full program guide, see our DSCR loans page. For statewide coverage, see our California mortgage broker page. See our guarantees for the terms of each one and the loans it covers.
DSCR loans by city
Rental loans that qualify on rent, not tax returns, in other iQRATE markets: Texas DSCR loans, Dallas DSCR loans, Houston DSCR loans, Tampa DSCR loans, DSCR loans for Miami condos, DSCR loans for Orlando short-term rentals, DSCR loans in San Antonio and Austin and DSCR loans in Sacramento and the Inland Empire. Investor loans are for business purposes only. Not all borrowers qualify. Terms subject to underwriting and change.
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
Related iQRATE pages
- Investors
- Portfolio loans
- Serial investor loans
- Blanket loans
- Non-QM loans
- P&L statement loans
- Self employed
- Refinance
- Closing costs by state
- Reviews
- Guarantees
- About
- FAQ
- Jumbo
- FHA loans
- VA loans
- First time home buyer
- Blog
Other California cities iQRATE lends in
- Anaheim
- Bakersfield
- Beverly Hills
- Carlsbad
- Coachella Valley
- Fremont
- Fresno
- Irvine
- Los Angeles
- Modesto
- Oakland
- Oceanside
- Pasadena
- Riverside
- Roseville
- Sacramento
- San Diego
- San Francisco
- San Jose
- Stockton
- Temecula
Next step: call or text (702) 766-3744, apply now or schedule a free consultation.
Check your DSCR ratio
Enter the rent and each part of the monthly payment for a Long Beach rental. The tool divides total rent by total PITIA. It does not use interest rates, quote a payment or approve a loan.
Each lender sets its own minimum ratio and decides which rent it counts (lease or appraiser market rent). This is a starting estimate, not a commitment to lend.
Talk with iQRATE about this loan
Apply now or contact us to get a quote on the property you have in mind. You can also schedule a call or book a call with David at (702) 766-3744. This is not a commitment to lend.
Sources
- FFIEC HMDA Data Browser, Los Angeles County loan-level data, 2023 to 2025, census tracts inside Long Beach city limits (checked November 4, 2026)
- U.S. Census Bureau, American Community Survey 2020-2024 5-year estimates, Long Beach and Los Angeles County
- Long Beach Municipal Code chapter 3.56, real property transfer tax; LA County Registrar-Recorder, documentary transfer tax
- City of Long Beach, short-term rentals
- California AB 1482, Tenant Protection Act of 2019
- California Board of Equalization, Proposition 13 and change in ownership
- FEMA Flood Map Service Center
- FHFA, 2026 conforming loan limit values
- Fannie Mae Selling Guide B3-4.1-01, minimum reserve requirements; Fannie Mae Selling Guide B3-3.1-08 (rental income) and B2-1.3-03 (cash-out refinance)
- 12 CFR 1026.3(a), Regulation Z business-purpose exemption
- IRS, like-kind exchanges
- IRS, get an employer identification number
Licensing and disclosures
iQRATE Mortgages LLC · 6360 S Rainbow Blvd Ste 101, Las Vegas, NV 89118 · Licensed in Nevada, California, Texas and Florida · Company NMLS 1862492 · David Ghazaryan, Mortgage Broker, NMLS 1486726 · (702) 766-3744.
DSCR loans are business-purpose loans for non-owner-occupied investment property, not for a home you or your family will live in. Investor loans are for business purposes only. Not all borrowers qualify. Terms subject to underwriting and change. Lender terms on this page are examples from specific lenders as of October 2026, and the charts are arithmetic only. Nothing on this page is a rate quote or loan offer, and it is not a commitment to lend. Programs are subject to credit, property and lender approval, and terms can change without notice. Local figures come from the public sources listed above as of the dates shown. Client files are de-identified and are not Long Beach closings. Past results do not guarantee future outcomes. Nothing on this page is tax or legal advice. Equal Housing Opportunity. iQRATE Mortgages LLC NMLS 1862492. David Ghazaryan NMLS 1486726.
