Rental / DSCR in San Bernardino

Yes, and it has a floor as well as a ceiling. San Bernardino County's own Community Facilities District 2006-1 (Lytle Creek North) raises its maximum special tax by CPI each July 1, with a minimum annual increase of 2% and a maximum of 4%, actual escalation was 3.47% for fiscal year 2024-2025. Proposition 13 caps the ad valorem tax line at 2% a year; a Mello-Roos special tax in a district like this one starts at that same 2% and can run faster. Size the DSCR carry cost assuming the special-tax line grows at least as fast as the tax line, not slower.

Yes, and the current bill will not show you that risk. In County CFD 2006-1, a park-and-parkway special tax is levied at $0.00 today only because the homeowners association is maintaining those areas itself. If the association stops, defunds, or dissolves, a maximum levy of $520.99 per unit becomes available, nearly doubling that parcel's special-tax burden with no physical change to the property. Read the district's rate and method of apportionment, not just the current secured tax bill, before you size a DSCR file on a newer subdivision here.

The High Desert, on a much lower basis than the Valley. Zillow's July 2026 city-level data puts gross rental yield, annual rent over home value, at 6.24% in Victorville and 5.62% in Hesperia, against 4.04% in Rancho Cucamonga and 3.34% in Upland. Rents are also moving fastest where the basis is lowest: Hesperia's ZORI rose 4.4% year over year against under 1% in Rancho Cucamonga. This is an arithmetic comparison on published index levels, not a cap rate, so still underwrite your own taxes, insurance, and vacancy.

Yes, both run mandatory rental inspection programs, on different schedules. The City of San Bernardino requires all single-family, duplex, and triplex rentals to be inspected biennially, with no exemption for Section 8 units, group homes, or in-care facilities, though its own Self-Certification Program can exempt a compliant owner from inspection fees for three years. The City of Ontario inspects every rental unit over seven years old once every four years and charges $51.00 per unit annually. Budget the inspection cycle and fee into the property's operating line, and confirm your specific city, since no rental inspection program was found for Fontana, Rancho Cucamonga, Redlands, Chino, Victorville, or Hesperia.

Treat these eight cities as long-term rental markets, not short-term rental markets. San Bernardino County's own short-term rental permit program, run under its Chapter 84.28 ordinance, is available only in the unincorporated Mountain and Desert regions of the county, such as Lake Arrowhead and Crestline, and does not reach any of these eight incorporated cities. Each incorporated city sets its own short-term rental rule, so confirm the city before you count that income. Size the DSCR pro forma on long-term rent for a property in this set, and if the plan is to hold and rent rather than rehab and sell, our fix and flip loan can fund acquisition and rehab first.

Older and more renter-heavy than the county average, especially in the city of San Bernardino. The county's median year structure built is 1983, and the city of San Bernardino's median is 1973, with 50.0% of the city's occupied housing units renter-occupied against 37.9% countywide. An older, majority-renter housing stock in the city of San Bernardino is a different DSCR underwrite, more turnover risk, more deferred maintenance to price, than a newer subdivision in Chino or Rancho Cucamonga, so budget for both when sizing the file.

A DSCR (debt service coverage ratio) loan qualifies on the property's rental income instead of your personal income, so there are no W-2s or tax returns required. We compare the rent, from a signed lease or the appraiser's market-rent estimate, against the monthly payment. A DSCR of 1.00 means the rent covers the payment, and we lend with a DSCR as low as 0.75.

Our rental program starts around 5.50% interest-only, with 30-year fixed and 5/7/10-year ARM options, for a single property or a whole portfolio. The lowest pricing goes to strong credit, lower leverage, and a DSCR above 1.20; your quote depends on the file and is subject to underwriting.

We finance up to 80% loan-to-value on a purchase, with rate-and-term and cash-out refinances available, on loan amounts from $100K to $3M. Cash-out leverage is typically a little lower than purchase. The property's cash flow and your credit set your final leverage.

We start at 640, and the best pricing goes to strong credit. Because the loan qualifies on the asset, your score affects your rate and leverage more than whether you are approved.

Yes, short-term rentals are considered. We can underwrite using market or projected rents, and the property still needs to meet our DSCR. Tell us how the property is operated so we can structure it correctly.

Long-term rental loans usually carry a prepayment penalty, commonly a step-down such as 5/4/3/2/1. We offer flexible prepay structures, including buying down to a shorter penalty for a slightly higher rate, and we will lay out the options on your term sheet.