San Bernardino DSCR Loans for Rental Property

Running a San Bernardino DSCR Loan on a University-Area House

The ratio is monthly rent divided by the full payment: principal, interest, property tax, insurance and any HOA dues. At 1.00 rent covers it exactly. Most lenders want at least 1.00, the strongest pricing usually starts around 1.20, and some programs go to 0.75 with more down or a higher rate. The calculator starts with a $400,000 house, close to the University typical value, renting at the citywide average of $1,971, with 25% down and no HOA.

Even at the low end, the average rent falls well short of covering a 75% loan at investor pricing. The citywide figure mixes apartments and houses, so price the actual rent for the actual property; a larger house may rent above it. A larger down payment closes the rest. Two- to four-unit buildings put several rents against one mortgage, and the county’s conforming limit for a fourplex is $1,601,750, so price a DSCR loan on a small building against a conventional investor loan.

San Bernardino’s Tenant Base

Tenants include warehouse and logistics workers, Cal State students, and county government and health-care employees in the county seat. The median household income was $67,415 in 2024 dollars, well below neighboring Riverside’s, which keeps rents and prices lower. One caution: logistics and warehousing made up about one in five wage and salary jobs countywide in 2025, but the sector shed 3,200 jobs from 2023 to 2024 and has declined since 2022, according to a Claremont McKenna analysis. The former Norton Air Force Base, now San Bernardino International Airport and a logistics complex, remains a job center. Build reserves for a vacancy rather than assuming today’s demand holds.

The State Rent Cap Is the Rule Set

No local rent control or just-cause ordinance beyond state law was confirmed, which leaves AB 1482. On covered units, increases over any 12 months are limited to 5% plus the regional CPI change or 10%, whichever is lower, from the lowest rent in the prior year, with no more than two increases. Rent resets at turnover. After 12 months of tenancy, an eviction needs an at-fault or no-fault reason. Housing built within 15 years is exempt, as are houses and condos owned by individuals rather than corporations or REITs, with the required written notice. It runs until January 1, 2030. Mobile home rules were not confirmed for this page.

Taxes, Insurance and the Payment the Ratio Uses

Property tax and insurance sit inside the ratio, so they decide deals at these price points. Tax starts at 1% of the purchase price under Proposition 13, plus voter-approved bonds and direct assessments; some newer northern subdivisions may carry a special tax, and no city list was confirmed, so read the bill for each parcel. The county transfer tax of $1.10 per $1,000 is customarily paid by the seller, and title company rate guides show no separate city tax.

On foothill streets, wildfire shapes the premium. The 2003 Old Fire destroyed roughly 975 to 993 homes in the region, and Very High hazard zones bring defensible-space rules and fewer carriers. The California FAIR Plan writes dwelling policies on owner or tenant occupied homes of up to four units, usually paired with a difference-in-conditions policy, and a higher premium lowers the ratio dollar for dollar.

Duplexes, Triplexes and Fourplexes

A small building is often the cleanest way to reach 1.00 here, because the rent from each door adds up against a single loan. Lenders will want each lease, and the appraiser’s rent schedule will be compared with what tenants actually pay. Since rent resets at turnover under AB 1482, a building with below-market leases can catch up over time, but the loan is sized on what the property earns now.

Qualifying for a San Bernardino DSCR Loan

Down payment

20% to 25% on a purchase; more below a 1.00 ratio or with a lower score

Credit

Floor around 620 to 660; better pricing above 700

Reserves

Often three to six months of payments, more with several financed properties

Prepayment penalty

Common, often stepping from 5% in year one to 1% in year five

Vesting

LLC allowed by most programs, with personal guarantees

Insurance

Landlord policy in force; foothill addresses need an early quote

DSCR loans are a non-QM product and terms vary widely, which is why Mike shops them. Living in one unit of a duplex or fourplex? An FHA or conventional owner-occupied loan costs much less. Already own a rental here with equity? An investment property HELOC can fund the next purchase without touching the first mortgage.

Refinancing a Rental You Already Own

Investors who bought for cash or with short-term money can refinance into a 30-year DSCR loan once the property is leased. The ratio test applies to the refinance too, and cash-out limits vary by lender, so price it on the signed lease, not on a projected rent. When the existing loan already carries a low rate, set the refinance beside a line of credit on the rental, which leaves that first mortgage untouched, and compare the total cost of each before you commit.

From Rent Roll to Closing in San Bernardino

1. Send the property and rentAddress or price, expected lease rent and unit count.
2. Confirm the rulesLong-term lease only, and AB 1482 status.
3. Run the ratioFull PITIA against rent, with down payment options.
4. Compare lendersRate, prepayment terms and reserves.
5. Appraise and closeA rent schedule with the appraisal, then signing in your name or an LLC.