For international real estate investors, the challenge is rarely finding a property. It is getting financing that does not depend on US tax returns, US income, or US credit report.
A DSCR loan solves that problem by qualifying you primarily on the property’s rental income, not your personal income. At HomeAbroad, we originate DSCR loans for foreign nationals and underwrite them with a California-specific lens, including rent caps, property tax mechanics, HOA dues, and insurance realities that directly affect DSCR.
California DSCR Loan Snapshot
1
Minimum DSCR Ratio
25%
Minimum Down Payment
$10M
Maximum Loan Amount
27 Days
Fast Track Closing
California DSCR Loan Program Terms
Feature
HomeAbroad DSCR Loan
DSCR Ratio
Best terms apply at DSCR ≥ 1.0; DSCR < 1.0 remains eligible with a higher down payment. Our No-Ratio DSCR loans (DSCR 0–1) help foreign nationals invest in properties with future income upside, even if today’s rent falls short of the mortgage.
US Credit Score
Not required for foreign nationals
Loan Amount
$100K – $10M
Down Payment
25%
LTV
Up to 75% (Purchase) Up to 75% (Rate and Term Refi) Up to 70% (Cash-Out Refi)
Cash Reserves
6 months
Where We Lend DSCR Loans in California
HomeAbroad offers DSCR loans across California, providing tailored support for global investors in top-performing cities, including San Diego, Madera, Oceanside, and more. Here are a few cities where we lend DSCR Loans in California.
Los Angeles
San Francisco
San Diego
San Jose
Sacramento
Fresno
Oakland
Long Beach
Bakersfield
Riverside
Santa Ana
Stockton
Palm Springs
Oceanside
Madera
California Investment Properties On Sale
Build wealth with HomeAbroad DSCR loans across California’s top markets.
Our streamlined digital process gets you from application to funding faster than traditional lenders.
1
Get Pre-Qualified
Submit a quick online application. No credit pull required for initial quote.
⏱ 5 minutes
2
Submit Documents
Upload property details, lease agreements, and basic ID verification.
⏱ Same day
3
Property Appraisal
We order an appraisal and a rent schedule to confirm DSCR qualification.
⏱ 5–7 days
4
Close & Fund
Sign closing documents and receive your funds. Remote closing available.
⏱ 27 days total
Why Investors Choose HomeAbroad
DSCR Loan Experts
We focus on DSCR investor loans. Expect clear cash flow math, rent documentation, and underwriting that reflects how rental properties are evaluated.
Foreign National Mortgage Experts
No US credit? No problem. With HomeAbroad, you can still qualify for a DCSR loan. We do not rely on US income or tax returns to underwrite your loan.
AI-Powered Property Search Platform
Our investment property search helps you shortlist rentals that fit DSCR qualification. Screen for rent strength, yield, and investor criteria before you write the offer.
End-to-End Support
We keep the process moving, from LLC formation to bank accounts, insurance to property management. Everything is handled by us so you can focus on growing your portfolio.
Table of Contents
DSCR Loan in California
A DSCR loan (Debt Service Coverage Ratio loan) is an investment property mortgage that qualifies foreign real estate investors based on a property’s rental income rather than personal income. It is widely used for long-term rentals and, in many cases, for short-term rentals when the rent analysis is supportable through the lender’s documentation standards.
This is especially relevant in California because:
Local rent rules can shape the long-term stability of rental income.
Purchase prices and carrying costs can be high, so underwriting must be precise.
HOA dues and insurance premiums can materially change PITIA.
How DSCR is Calculated?
DSCR underwriting starts with a simple formula:
What typically counts as “Gross Rental Income”
Market rent supported by the appraisal rent schedule (commonly used for 1 to 4-unit rentals)
Executed lease rent, when acceptable to the lender and consistent with market support
What is included in PITIA
Principal
Interest
Taxes (California property taxes and applicable assessments)
Insurance (including wildfire-related costs where relevant)
Association dues (HOA), if applicable)
Example
Calculating the DSCR Ratio for California Property:
Avg. Home Value in Los Angeles: $4,82,000
Avg. Rental Income in Los Angeles: $2,865
Loan Term: 30 Years
Interest Rate: 7.5%
Monthly Mortgage Payment(PITIA):$2,038
DSCR = $2,865 ÷ $2,038
DSCR = 1.4
Monthly Positive Cash Flow: $827
A DSCR of 1.4 means the property generates more income than required to cover the loan’s debt obligations, creating positive cash flow and serving as a strong indicator of financial stability for us.
However, we understand that not every property's rental income will meet this threshold, which is why we also offer our No-Ratio DSCR Program for properties with a DSCR between 0 and 1. With the No-Ratio program, you can still secure financing, although it will require a slightly larger down payment (a 5% reduction in LTV) and a higher interest rate. This option is ideal for investors with a strong long-term strategy who want to acquire properties that may not immediately generate a 1.0 cash flow ratio.
Benefits of California DSCR Loans
DSCR loans offer several advantages over conventional financing, especially for international real estate investors:
No Personal Income Documentation
A DSCR loan is not underwritten like a conventional loan, which can be nearly impossible to get for foreign nationals. With DSCR loan, the focus is on the property’s rental income and cash flow. This is useful when your income is earned outside the US, or your documentation does not fit standard US loan boxes.
Faster Closing Times
DSCR loans can move quickly when the property, rent support, and documentation are straightforward. Appraisal and rent schedule timing still matters, especially in competitive California markets. At HomeAbroad, we can close your deal in as less as 27 days.
Scale Your Portfolio Faster
International real estate investors like DSCR lending because it creates a repeatable qualification approach across multiple properties. When you understand how rent, PITIA, and reserves will be evaluated, it becomes easier to screen deals before you write offers.
Foreign National Friendly
DSCR loan is one of the best mortgage options for foreign nationals, who often face friction with conventional underwriting. DSCR lending is commonly used to reduce that friction because the property performance drives the qualification logic.
“In California, DSCR is won or lost on two things: an underwriteable rent number and a payment that reflects real taxes and insurance. Get those right early, and the rest gets much easier.”
How HomeAbroad Helped a UK Investor Get a DSCR Loan in California
HomeAbroad has helped foreign nationals finance California rentals using DSCR underwriting. For example, a UK-based investor used a HomeAbroad DSCR loan to purchase an investment in San Francisco and qualified based on rental income rather than a US credit history.
Property Details:
Location: San Francisco Property Value: $437,500 Monthly Rental Income: $4,308
Loan Details:
Loan Amount: $328,125 Down Payment: 25% ($109,375) Interest Rate: 7.2% Loan Term: 30 years Monthly Mortgage (PITIA): $2,986
California’s rental market remains one of the strongest in the nation, driven by population growth, high barriers to homeownership, and diverse economic drivers from technology to entertainment to agriculture.
Key market statistics for 2025:
Median rent in California: approximately $2,825/month
Average home prices: around $700,000 statewide
Approximately 49% of California households are renters
Annual home price appreciation has averaged 8.36% over the past five years
The combination of high home prices pushing more residents into renting, strong job markets in major metros, and consistent demand creates reliable rental income opportunities for investors using DSCR financing.
Top Places to Invest in California with a DSCR Loan
California’s real estate market has seen steady appreciation, averaging 8.36% annually over the past five years. That kind of growth, paired with constant demand, makes it a reliable choice for long-term investors.
Whether it’s short-term rentals by the coast or income properties in high-demand cities, the state offers flexibility and potential. With a DSCR loan, you can easily get financing based on rental income, not personal income, making it easier to invest in one of the country’s most competitive markets.
Here are some top cities in California for international real estate investors to consider for their next successful DSCR loan investment:
City
Rental Type
Rental Yield
San Diego
Short-Term
8.04%
Palm Springs
Short-Term
12.94%
Bakersfield
Long-Term
6.11%
Oceanside
Short-Term
10.9%
Madera
Long-Term
6.66%
San Diego: Coastal Sophistication with Short-Term Rental Power
San Diego blends a laid-back coastal lifestyle with a booming tourism and biotech economy. The vacation rental market remains strong, especially in beachside neighborhoods.
Median Home Price: $959,833
Average Rent: $3119/month
What this means for investors: San Diego’s high nightly rates and tourism volume make it ideal for DSCR-backed short-term rental strategies, even at higher property prices.
Investment Properties Listed Today on Sale in San Diego
Palm Springs is a premier vacation hotspot with year-round appeal. Its design-forward homes and resort culture draw consistent short-term rental demand.
Median Home Price: $719,167Median sale price
Average Rent: $2875/month
What this means for investors: With one of the highest STR cap rates in the state, Palm Springs offers excellent income potential, making it ideal for maximizing DSCR leverage.
Investment Properties Listed Today on Sale in Palm Springs
Bakersfield isn’t flashy, but its affordability and rental demand driven by energy, agriculture, and logistics make it a reliable cash-flow market.
Median Home Price: $348,000
Average Rent: $1970/month
What this means for investors: Ideal for long-term DSCR plays. Low entry costs and stable rent returns make it accessible for investors focused on yield over appreciation.
Investment Properties Listed Today on Sale in Bakersfield
Just north of San Diego, Oceanside offers beachside living and is gaining popularity as a short-term rental destination. Tourism and military presence consistently boost occupancy rates year-round.
Median Home Price: $838,000
Average Rent: $3399/month
What this means for investors: Strong short-term rental income and consistent tourist flow make Oceanside a solid option for DSCR qualification in coastal Southern California.
Investment Properties Listed Today on Sale in Oceanside
Located in Central California, Madera is benefiting from Fresno’s spillover growth. It’s a low-cost market with increasing demand for long-term rentals.
Median Home Price: $431,249
Average Rent: $2395/month
What this means for investors: For cash-flow-focused investors, Madera offers affordable homes with decent rents, which help meet DSCR thresholds with minimal upfront capital.
Investment Properties Listed Today on Sale in Madera
California Specific DSCR Underwriting Factors that Investors Overlook
Property Insurance and Wildfire Risk
California’s wildfire exposure creates unique insurance considerations. Properties in high-risk zones may face higher premiums or require coverage through the California FAIR Plan. Factor insurance costs into your DSCR calculations, and work with local agents who understand the market.
Rent Control Regulations
California’s statewide rent control (AB 1482) caps annual increases at 5% plus local inflation (up to 10% total) for qualifying properties. Additionally, many cities like San Francisco, Los Angeles, and Santa Monica have stricter local regulations. Understanding these rules is essential for accurate cash flow projections.
Short-Term Rental Regulations
Unlike some states, California doesn’t have unified statewide STR licensing. Local rules vary significantly. Many cities require permits, restrict rentals to primary residences, and mandate Transient Occupancy Tax (TOT) collection. Research local regulations carefully before purchasing an STR investment property.
Strategic & Future Considerations for Foreign Nationals Investing in California
California remains a global real estate magnet, but international real estate investors need to think beyond the glamour of Los Angeles skylines or San Francisco tech hubs. The state’s evolving legal landscape, environmental realities, and shifting buyer demographics require nuanced investment strategies. Whether you’re eyeing luxury estates or stable rental income, understanding California’s direction is key to staying competitive and compliant.
Here are some future considerations that international real estate investors need to pay heed to:
1. Foreign Ownership-Friendly Policies
California has no restrictions on foreign nationals owning residential real estate. Investors can freely purchase single-family homes, condos, and multifamily properties. However, recent legislative proposals, such as SB 1084, aim to restrict purchases by foreign governments or state-linked entities, particularly in agricultural and strategic zones. While residential assets remain open to individuals and corporations, increased scrutiny is likely to be applied in specific land-use categories moving forward.
2. Foreign Buyer Impact on Luxury and Coastal Markets
Foreign national buyers have long shaped California’s luxury housing scene. Chinese and Middle Eastern investors, in particular, continue to influence pricing and development in areas such as Beverly Hills, Palo Alto, Newport Beach, and La Jolla. Their preference for high-end, amenity-rich homes, often paid for in cash, drives new construction and pricing trends. However, wildfire risk and insurance volatility are leading some global buyers to favor newer, better-insulated developments in less fire-prone regions.
3. Foreign Buyers’ Visa and Residency Trends
California is a preferred destination for real estate-linked immigration. The EB-5 visa program, which requires job-creating investments, continues to fund significant commercial and multifamily developments in cities like Los Angeles and San Francisco. Meanwhile, E-2 and L-1 visa holders often seek homes in top-performing school districts or near business hubs, creating niche demand in places like Cupertino, Irvine, and Walnut Creek. Understanding visa timelines and tax implications is crucial for structuring acquisitions and exits effectively.
4. Growth of Secondary Cities
While Los Angeles, San Francisco, and San Diego dominate global attention, international buyers are increasingly turning to smaller markets, such as Irvine, Sacramento, Santa Barbara, and Riverside. These areas offer a mix of affordability, strong rental demand, and livability, with access to education, healthcare, and growing job centers. Orange County, in particular, has seen a rise in foreign interest due to its master-planned communities, high safety ratings, and proximity to both beaches and business districts.
California DSCR Loan FAQs
Can foreign nationals apply for DSCR loans in the state of California?
Yes, foreign nationals can apply for DSCR loans in California through HomeAbroad Loans, eliminating the need for a US credit score, making it a flexible financing option for global investors.
What are the interest rates for DSCR loans in California?
DSCR loan interest rates vary based on market conditions, borrower profiles, and property type, but are typically higher than conventional loan rates. However, HomeAbroad offers competitive rates that enable investors to leverage property cash flow to achieve better returns.
How long does it take to get a DSCR loan in California?
At HomeAbroad Loans, we streamline the application process to ensure a smooth experience from loan application to closing. We guarantee that the closing will happen within 30 days.
About the author:
Steven Glick is the Director of Mortgage Sales at HomeAbroad and has over a decade of experience in the mortgage industry. As a licensed mortgage originator (NMLS# 1231769), Steven brings deep expertise in loan processing, sales operations, and non-traditional mortgages.
HomeAbroad is a one-stop shop for global investors, from finding properties to securing financing, setting up your LLC, opening a US bank account, and managing your portfolio.
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States We Lend In
27 Days
Average Close Time
500+
Partner Real Estate Agents
4.9 Star
Customer Rating
Pre-qualify for a DSCR Loan as an international investor
No U.S. credit history. No personal income verification. Qualify based on property’s rental income.
