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Reviewed by David Ghazaryan, Mortgage Broker, NMLS 1486726 · iQRATE Mortgages, company NMLS 1862492 · Last updated: November 13, 2026
Short answer: a DSCR loan for a San Diego rental qualifies the property on its monthly rent compared with its full payment of principal, interest, taxes, insurance and HOA dues (PITIA). It does not use your tax returns. iQRATE Mortgages is a California-licensed mortgage broker that compares DSCR programs from more than 100 lenders. We match each rental to a lender whose guidelines fit it. Start your application or call (702) 766-3744.
DSCR loans are business-purpose financing for non-owner-occupied investment property only. You cannot live in the home. Federal consumer-lending rules treat credit extended primarily for a business purpose differently from consumer credit, as the CFPB's Regulation Z section 1026.3 explains. This page is general information and not a commitment to lend.
DSCR stands for debt service coverage ratio. The lender divides the property's monthly rent by its full monthly payment. That payment is PITIA: principal, interest, property taxes, insurance and HOA dues. A result above 1.00 means the rent covers the payment. A result below 1.00 means it does not.
Lenders still review your credit, your assets, your reserves and the appraisal. What they skip is your W-2 income, your tax returns and your personal debt-to-income ratio. That is why self-employed owners, owners with many rentals and owners buying through an LLC often prefer this path. For a wider explanation of how the ratio works, see our main DSCR loan guide. This page stays focused on what changes when the rental sits in San Diego.
Each lender writes its own rules. The minimum ratio, credit score, reserves and short-term rental treatment all vary. That is the reason to compare more than one lender before you write an offer.
Divide the expected monthly rent by the full monthly payment. Then read the result against the lender's minimum. The table below shows how lenders tend to treat different results. It is a reading guide, not a quote.
| Ratio result | What it means | What to expect |
|---|---|---|
| Below 1.00 | Rent is less than the full payment | Some lenders still allow it, with a lower ratio floor and stricter terms |
| About 1.00 | Rent roughly equals the full payment | Lender minimums vary; first-time investors are often held to 1.00 or higher |
| Above 1.00 | Rent exceeds the full payment | Lender guidelines differ, so compare programs |
| Short-term rental ratio | Higher cushion for nightly income | Often about 1.15 to 1.50, or 12 months of platform payout history |
Enter the rent and the full monthly payment (principal, interest, taxes, insurance and HOA) from your own lender quote. The tool does simple division only. It uses no interest rate, quotes no payment and approves no loan.
| Figure | Value | Source |
|---|---|---|
| County median price, August 2026 | $1,090,000, up 6.3% from a year earlier | California Association of Realtors county medians, as compiled by North Coast Financial |
| Median days to sell, August 2026 | 19 days | California Association of Realtors |
| Typical home value, September 2026 | About $929,618 | Zillow market report |
| Investment-property purchase loans, 2025 metro | 2,408 of 20,927 (11.5%) | HMDA data |
| Business-purpose purchase loans among those | 1,789 | HMDA data |
| Tier 3 whole-home licenses left, October 23, 2026 | 807 | City of San Diego Treasurer |
| Tier 4 Mission Beach licenses issued | 1,099 (none left) | City of San Diego Treasurer |
| Minimum days of use on Tier 3 and Tier 4 licenses | 90 days a year | City of San Diego Treasurer |
| Prop 13 total property tax range | About 1.1% to 1.3% of price | California Board of Equalization |
| Annual assessed-value increase cap | 2% a year | California Board of Equalization |
These are typical ranges from 2026 wholesale lender guidelines we reviewed. They are not an offer, and each lender sets its own. Your file may land outside them.
| Item | Typical range in guidelines we reviewed |
|---|---|
| Minimum DSCR | About 0.75 to 0.80 at the low end; often 1.00 or more for first-time investors and interest-only structures |
| Minimum credit score | About 640 to 720, depending on loan size and ratio |
| Loan amount | Minimums around $100,000 to $125,000; maximums up to about $3,000,000 |
| Cash reserves | About 3 to 12 months of PITIA, scaled to loan amount |
| Short-term rental income | Often allowed with a higher ratio (about 1.15 to 1.50) or 12 months of platform payout history |
| Vesting | LLC or corporation often allowed, usually with a personal guarantee from owners of 50% or more |
| Property types | One to four units, PUDs and condos; some lenders accept non-warrantable condos |
Down payment, leverage and prepayment terms depend on the lender and the ratio. We review them with you on a call, not on this page.
No. The conforming limit applies to loans bought by Fannie Mae and Freddie Mac. DSCR loans are generally non-agency loans, so each lender sets its own maximum. The Federal Housing Finance Agency publishes the county figures on its conforming loan limit page.
| Units | 2026 agency limit | DSCR loan size |
|---|---|---|
| 1 unit | $1,104,000 | Lender's own maximum |
| 2 units | $1,413,350 | Lender's own maximum |
| 3 units | $1,708,400 | Lender's own maximum |
| 4 units | $2,123,100 | Lender's own maximum |
For owner-occupied homes above the limit, see our jumbo loan page. For service members buying a primary home, VA loans are a separate owner-occupied path. Neither is a DSCR product. David's own first-call advice applies here too: don't confuse the purchase price with the loan amount. In his words, a $1.4 million house doesn't necessarily need a jumbo mortgage, because the amount financed determines which loan-limit category applies.
Only if the city license rules let you keep operating, and then only if the lender accepts the income. The City of San Diego requires a license for every short-term rental of less than one month under its Short-Term Residential Occupancy (STRO) program. Details are on the City Treasurer's STRO page.
| Tier | What it allows | DSCR planning note |
|---|---|---|
| Tier 1 | Rental of 20 days a year or fewer | Check the City Treasurer's page for how it applies to your plan |
| Tier 2 | Home sharing while you live on site | Owner-occupied home sharing; DSCR loans are for non-owner-occupied property |
| Tier 3 | Whole-home rental outside Mission Beach; capped at about 1% of housing units; 90 days of use a year required; 807 remaining on October 23, 2026 | Scarce; confirm availability before you count nightly income |
| Tier 4 | Whole-home rental in Mission Beach; capped at 30%; 1,099 issued; none remaining on October 23, 2026; application period closed | A new Mission Beach buyer should not count on short-term income |
David Ghazaryan does not start with the seller's Airbnb income. He starts by asking whether the buyer can legally continue the rental operation. In his experience, a seller's short-term rental license does not automatically transfer with the property. A Tier 2 home-sharing license is not equivalent to a Tier 3 whole-home license, and Mission Beach whole-home rentals fall under Tier 4, where licenses are capped. If the plan assumes whole-home nightly rentals, he confirms that operation is permitted before calculating DSCR from projected bookings. A lender may accept certain rental projections or historical receipts, but it still evaluates the income under its own program rules.
A host can hold only one license, and the host on an STRO license must be a natural person, not an LLC. The city also prohibits short-term rental of accessory dwelling units, except companion units permitted before October 15, 2017. A permitted ADU's long-term rent can still help the ratio under some lenders' guidelines. For most purchases, the safer plan is to underwrite on long-term rent.
The ratio only works if the payment includes real local costs. Leave one out and the rent looks like it covers more than it does.
| Cost | What to know | Source |
|---|---|---|
| Property tax | Proposition 13 resets assessed value to the purchase price. Total tax is usually about 1.1% to 1.3% of price, and assessed value then rises at most 2% a year. Expect a supplemental bill after you buy. | California Board of Equalization |
| Mello-Roos | Newer communities such as 4S Ranch, Del Sur, Black Mountain Ranch and Otay Ranch often carry special taxes, which can add hundreds of dollars a month. Lenders count them, so add the special tax to the payment and ask the seller for the current tax bill. | iQRATE San Diego market notes |
| Landlord insurance | Get a quote on the exact property before you run the ratio. | Your insurer |
| HOA dues | Condos and PUDs include dues in the payment. | HOA documents |
| Transfer tax | $1.10 per $1,000 at the county level, customarily paid by the seller, so a $1,000,000 sale carries $1,100. The City of San Diego charges no city transfer tax. | Revenue and Taxation Code section 11911 |
The county transfer tax is a statutory rate, so its dollar amount can be worked out for any price. The table below shows the arithmetic at $1.10 per $1,000 next to the property-tax range. It is an illustration of published rates, not a quote, and the seller customarily pays it, according to the Fidelity National Title transfer-tax guide.
| Sale price | County transfer tax | 1% a year | 1.1% a year | 1.3% a year | Assessed value after a 2% rise |
|---|---|---|---|---|---|
| $500,000 | $550 | $5,000 | $5,500 | $6,500 | $510,000 |
| $600,000 | $660 | $6,000 | $6,600 | $7,800 | $612,000 |
| $750,000 | $825 | $7,500 | $8,250 | $9,750 | $765,000 |
| $900,000 | $990 | $9,000 | $9,900 | $11,700 | $918,000 |
| $1,000,000 | $1,100 | $10,000 | $11,000 | $13,000 | $1,020,000 |
| $1,090,000 (August 2026 county median) | $1,199 | $10,900 | $11,990 | $14,170 | $1,111,800 |
| $1,250,000 | $1,375 | $12,500 | $13,750 | $16,250 | $1,275,000 |
| $1,500,000 | $1,650 | $15,000 | $16,500 | $19,500 | $1,530,000 |
| $2,000,000 | $2,200 | $20,000 | $22,000 | $26,000 | $2,040,000 |
The property-tax columns use the 1% base and the usual 1.1% to 1.3% total range from the Board of Equalization's published rules, and the last column applies the 2% annual cap to the purchase price. They are tax figures, not loan payments. Special taxes, supplemental bills and voter-approved levies come on top, so use the seller's actual tax bill for the real PITIA line.
The California Association of Realtors put the San Diego County median at $1,090,000 for August 2026. That was up 6.3% from a year earlier, and homes sold in a median of 19 days. Zillow's typical San Diego home value was about $929,618 in September 2026. A buyer at those prices needs rent that covers a full PITIA payment. Run the ratio on the exact address, or call (702) 766-3744 and we will run it with you.
The HMDA figures in the quick facts show a real investor segment: about one in nine metro purchase loans in 2025 was for investment property. They do not predict what any one loan will cost or whether it will be approved. In a market where homes sell quickly, a lender with a clear view of your DSCR file before you offer is a real advantage.
San Diego's buyers include active-duty sailors and Marines, veterans, biotech and defense engineers, and investors chasing coastal rents. We treat that as context only. Your lender underwrites the rent on your appraisal, not the neighborhood story.
These figures restate numbers already cited on this page. The right-hand column shows simple arithmetic on them, which is our own calculation and not a published statistic.
| Figure | Source figure | Arithmetic |
|---|---|---|
| Metro first-lien purchase loans, 2025 (HMDA) | 20,927 total; 2,408 investment property | 18,519 were not for investment property |
| Business-purpose flag among investment loans | 1,789 of 2,408 | About 74% carried the flag; 619 did not |
| Investment share of metro purchase loans | 11.5% | About 1 in 9 loans |
| County median vs. Zillow typical value | $1,090,000 (August 2026) and $929,618 (September 2026) | $160,382 apart; the two measure different things |
| Transfer tax on a $1,000,000 sale | $1.10 per $1,000 | $1,100, customarily paid by the seller |
| One-unit limit vs. four-unit limit | $1,104,000 and $2,123,100 | $1,019,100 higher for four units |
| Whole-home Tier 3 and Tier 4 licenses left | 807 and 0 on October 23, 2026 | 807 in total |
| Mission Beach Tier 4 licenses | 1,099 issued; capped at 30% | Application period closed |
| Median days to sell | 19 days (August 2026) | Under 3 weeks, so have your DSCR file ready |
| Prop 13 reassessment cap | 2% a year | Two years of growth cannot exceed about 4.04% |
| Lenders compared | More than 100 | One file, many sets of guidelines |
| Item | Result |
|---|---|
| Difference between the 2-unit and 1-unit agency limits ($1,413,350 vs. $1,104,000) | $309,350 |
| Difference between the 3-unit and 2-unit limits ($1,708,400 vs. $1,413,350) | $295,050 |
| Difference between the 4-unit and 3-unit limits ($2,123,100 vs. $1,708,400) | $414,700 |
| Base 1% property tax on the $1,090,000 county median | $10,900 a year |
| Total 1.1% to 1.3% property tax on that median | $11,990 to $14,170 a year |
| County transfer tax on that median at $1.10 per $1,000 | $1,199 |
| Median a year earlier, if $1,090,000 is up 6.3% | About $1,025,400 |
| Tier 3 minimum use of 90 days as a share of a 365-day year | About 25% |
| Tier 1 limit of 20 days as a share of a 365-day year | About 5.5% |
| Rent-cap ceiling of 10% on a $3,000 monthly rent | At most $300 more a month |
| Exemption window for newer housing under the rent cap | 15 years from the certificate of occupancy |
| Guarantor ownership threshold typical for an LLC vesting | 50% or more |
| Units a DSCR file typically covers | 1 to 4 |
These are tax and limit figures for context, not loan payments or an offer of terms. The $3,000 rent is a round number for the arithmetic, not a San Diego market rent.
The list is short because the property carries the qualifying income. Your lender may ask for more.
We work San Diego files from our Las Vegas office, which is open Monday to Friday, 9 am to 5 pm, and we close them with local escrow and title.
We lend across San Diego County. The table lists areas and ZIP codes, with the DSCR point to check first for each. Always confirm which city or county rules govern the exact address.
| Area | ZIP codes | DSCR check to run first |
|---|---|---|
| North Park and South Park | 92104, 92102 | Rental plan: long-term rent or a licensed short-term rental |
| Clairemont | 92117 | Long-term rent, insurance quote and any HOA dues |
| Point Loma | 92106, 92107 | Whole-home nightly rental needs a Tier 3 license |
| Pacific Beach and Mission Beach | 92109 | Mission Beach whole-home rentals fall under Tier 4, now closed to new licenses |
| La Jolla | 92037 | Check the lender's maximum loan amount and any condo or HOA rules |
| Mira Mesa and Scripps Ranch | 92126, 92131 | Long-term rent against taxes, insurance and any special taxes |
| Rancho Bernardo and 4S Ranch | 92127, 92128 | 4S Ranch often carries Mello-Roos special taxes |
| Del Sur, Black Mountain Ranch and Otay Ranch | Confirm by address | Newer communities that often carry Mello-Roos special taxes; get the current tax bill |
| Carmel Valley and Del Mar Heights | 92130 | Check HOA dues and any community facilities district tax |
The City of San Diego's license rules stop at the city line. Oceanside, Carlsbad and the county's other cities set their own short-term rental rules, so check the city before you count nightly income. iQRATE also publishes California market pages for Oceanside, Carlsbad, Temecula, Irvine, Anaheim, Riverside and Los Angeles, which are separate from this San Diego page. Our San Diego mortgage broker page holds the wider local file for owner-occupied buyers.
Local assistance programs, such as the San Diego Housing Commission first-time homebuyer program and the County of San Diego Down Payment and Closing Cost Assistance program, are for owner-occupied purchases. They do not apply to a DSCR rental.
It can. California Civil Code Section 1947.12 limits annual rent increases on covered rentals to 5% plus the change in the cost of living, or 10%, whichever is lower. Housing with a certificate of occupancy issued within the previous 15 years is exempt. Some separately titled homes can be exempt when the owner qualifies and gives tenants the required notice. Lenders size the loan on today's rent, so confirm coverage before you count on future increases.
A single lender can only offer its own guidelines. A broker compares several. That matters for DSCR because rules differ on ratio floors, credit minimums, reserves, LLC vesting, condos and short-term rentals. iQRATE Mortgages is a mortgage broker, not a lender. We do not fund loans. We shop programs and place the file with a lender whose rules fit the property.
| Question | Single lender | iQRATE Mortgages (broker) |
|---|---|---|
| Programs offered | Its own guidelines only | DSCR programs from more than 100 lenders |
| Ratio floor, reserves, LLC and condo rules | One set of rules | Compared across lenders for the property |
| Short-term rental income | Accepted or not under one policy | Matched to a lender whose policy fits |
| Who funds the loan | The lender itself | A lender we place the file with; iQRATE does not fund loans |
We are licensed in 4 states, Nevada, California, Texas and Florida, under company NMLS 1862492, and we have closed a $2.0M California jumbo purchase in 22 days. Call or text David at (702) 766-3744 to talk through your rental. You can verify us on NMLS Consumer Access. More about the team is on our about page.
With the Navy, the Marine Corps and Camp Pendleton nearby, many San Diego-area owners are service members. After a PCS move, you can often keep your VA-financed home as a rental once you meet the VA occupancy requirement. You may then use remaining entitlement at your next duty station. Reconcile the PCS orders, the reporting date and the occupancy paperwork so the file tells one consistent story. A DSCR loan can be the next step if you later buy another rental. VA home loans carry no loan limit for borrowers with full entitlement, according to the VA loan limits page, and the VA home loan program page explains eligibility.
These closed files come from our own California and investor work. They are company examples from other markets and different loan types, shown to explain how we work. They are not San Diego results and not a promise about your loan.
This is a Las Vegas example from David, shared as an other-market illustration of how DSCR works. It is not a San Diego transaction.
A buyer's financing on a brand-new investment property fell apart when the builder's preferred lender denied her. She had followed the builder's requirement to apply through its lending channel, so the builder agreed to honor its incentives if she found outside financing. We arranged a DSCR loan using the property's rental income. We applied the builder incentives toward a rate buydown. The debt service coverage ratio was approximately 1.00, and the loan closed in less than three weeks.
David's lesson: a denial does not always end a good deal. Sometimes the answer is reading the purchase contract, protecting the buyer's position and choosing a program that fits the investment. He also says to look at the whole transaction, including cash invested, monthly carrying costs, reserves, prepayment penalties and the exit strategy. A loan that looks cheap today can cost more if you must refinance or sell before a penalty ends.
These are David Ghazaryan's own words from his answers to our investor questions.
"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. I've seen investors spend weeks negotiating a purchase price and then barely examine the financing terms. They focus on the interest rate. I look at the entire transaction: cash invested, monthly carrying costs, reserves, prepayment penalties, and the exit strategy."
"I'm interested in whether the financing supports the investment strategy, not simply whether a lender will approve it."
On San Diego files, David adds that he tells buyers not to rely on a preliminary payment quote that has not accounted for the exact property's taxes, insurance, HOA expenses and any applicable assessments. He will also attend a closing when a client wants someone there to explain the documents.
DSCR is one path. The right one depends on how you earn income and how many properties you hold.
| Loan path | Usually fits | Learn more |
|---|---|---|
| No-ratio DSCR | Investors whose rent does not meet a ratio floor | Ask David whether a lender's program fits |
| Foreign national DSCR | Non-U.S. buyers of U.S. rentals | Ask David whether a lender's program fits |
| Bank statement | Self-employed borrowers whose tax returns understate income; 12 or 24 months of personal or business statements stand in for returns | Bank statement loans |
| Non-QM | Files that do not fit standard guidelines | Ask David whether a lender's program fits |
| Portfolio and blanket | Owners financing several rentals | Portfolio loans |
| Serial investor | Owners scaling a portfolio | Serial investor loans and the investor loan hub |
For shared local data on owner-occupied loans, the San Diego mortgage broker page linked above covers the rest of the file.
These are verbatim reviews from company-wide profiles. They come from other markets. They describe working with David and the iQRATE team, not 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, Google review (company-wide, other market)
"David handled the purchase of my investment duplex in Olympia - Washington State. He came recommended by my realtor, and was very attentive, closed on time, and communicated clearly."
Nnamdi Chima, Zillow review (company-wide, Washington State market)
"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., Yelp review (company-wide, Los Angeles, CA)
"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., Yelp review (company-wide, Menifee, CA)
"The team at iQRate Mortgages is experienced, thorough, and professional. They are also very personable and are there to walk you through the process step by step. I highly recommend iQRate Mortgages for a seamless processing of your Mortgage loan. My experience with them was very good. I have also been a client of David's for a couple of decades. I have always had a wonderful customer service experience."
shawnda urquidi, Google review (company-wide, other market)
Ratings across our company profiles: Google 5.0 from 77 reviews, Yelp 5.0 from 51 reviews, Zillow 5.00 from 9 reviews, and 5.0 from 87 reviews on Experience.com as of October 2026. Read David's Experience.com reviews or our reviews page.
The lender tests the rental's own rent against its own carrying costs instead of reading your pay stubs, W-2s and tax returns. Because it is business-purpose credit, the home cannot be your residence.
There is no single number. The wholesale guidelines we reviewed for 2026 start near 0.75 to 0.80 at the low end, and first-time investors and interest-only structures are often held to 1.00 or more. Your ratio is only part of the file.
It depends on the lender, the loan size and the ratio. Weaker ratios or short-term rental income can tighten terms. We go over each lender's current requirements with you on a call before you commit to a purchase.
No. The FHFA limit applies to loans that Fannie Mae and Freddie Mac can buy. A DSCR lender sets its own maximum, and in the guidelines we reviewed that maximum reaches about $3,000,000.
Only if the new owner can legally keep operating it. The City of San Diego's whole-home license counts as of October 23, 2026 are in the table above, and a lender that accepts short-term income often wants a higher ratio or a payout history. Many buyers underwrite on long-term rent instead.
David's experience is that it does not transfer automatically with the property. Check the license status with the City Treasurer before you rely on a seller's rental income.
Many allow an LLC or corporation, usually with a personal guarantee from owners of 50% or more, though details vary by lender. A short-term rental license inside the City of San Diego must be held by a natural person, not an LLC.
It can on covered rentals. The rent cap section above gives the rule. Lenders size the loan on today's rent, so check coverage before you count on future increases.
Possibly as a long-term rental. The City of San Diego bars short-term rental of ADUs other than companion units permitted before October 15, 2017, and some lenders' guidelines let a permitted ADU's long-term rent add to the ratio.
No. DSCR loans are for business-purpose investment property only. If you will live in the home, a conventional, VA, jumbo or bank statement loan may fit better.
No. The STRO program belongs to the City of San Diego. Each other city in the county sets its own rules, so check the city that governs the address.
No. iQRATE Mortgages is a mortgage broker. We compare lenders and place your file with one whose guidelines fit. Every loan is subject to credit approval, underwriting and property eligibility.
Compare more than one, since each sets its own ratio, credit, reserve and short-term rental rules. Call (702) 766-3744 and we will compare programs for your property.
Federal Housing Finance Agency 2026 conforming loan limits; FFIEC and CFPB HMDA data for 2025 (San Diego-Chula Vista-Carlsbad metro); City of San Diego Office of the City Treasurer STRO page and FAQs (October 23, 2026); California Civil Code Section 1947.12; San Diego County Assessor, Recorder and County Clerk; California Association of Realtors county medians; Zillow home value data for September 2026. Additional references: CFPB on debt-to-income ratio and Zillow's September 2026 market report.
Call or text David at (702) 766-3744 Monday to Friday, 9 am to 5 pm, or by appointment on weekends. Apply now online, or call (702) 766-3744 to talk through your file first.
DSCR and investor loans are business-purpose financing for non-owner-occupied investment property only. Every loan is subject to credit approval, underwriting and property eligibility. This is not a commitment to lend. Programs, ranges and terms change and vary by lender. Local facts on this page come from public sources and are not legal or tax advice.
iQRATE Mortgages LLC, company NMLS 1862492. David Ghazaryan, Mortgage Broker, NMLS 1486726. (702) 766-3744. Equal Housing Opportunity.
