Griffin Funding DSCR Review: Rates, Process, and Verdict

Griffin Funding has established itself as a powerhouse in California real estate lending, with deep expertise in the state's unique regulatory environment and competitive pricing for West Coast investors. While they operate nationwide, their California focus and local knowledge make them particularly compelling for Golden State investors—but are their rates and service good enough to compete beyond their home turf?

About Griffin Funding

Griffin Funding was founded in 2013 and is headquartered in San Diego, California. The company started with a focus on California residential lending and has expanded to offer investor-focused products nationwide while maintaining their California specialty.

Since inception, Griffin Funding has funded over $3 billion in loans, with approximately 60% of their volume in California. They offer a full range of loan products including conventional mortgages, FHA/VA loans, jumbo loans, and investor products like DSCR rental loans and bridge financing.

What distinguishes Griffin from many DSCR lenders is their dual identity: they're both a consumer lender (offering traditional mortgages) and an investor lender. This broader licensing and infrastructure sometimes provides advantages in terms of regulatory compliance and operational sophistication.

Griffin Funding DSCR Loan Overview

Program Details

• Loan amounts: $150,000 to $4 million ($5M+ in select California markets)
• Interest rates: 6.99% - 10.25% (as of Q1 2026)
• Loan terms: 30-year fixed, 5/1 ARM, 7/1 ARM, 10/1 ARM
• DSCR minimum: 1.0 (0.95 considered in California with compensating factors)
• Credit score minimum: 660 (640 in California with strong compensating factors)
• Maximum LTV: 80% (85% available in select situations)
• Down payment: 20% minimum (15% with strong profile and DSCR above 1.25)
• Property types: 1-4 units, condos, townhomes, single-family
• Coverage: All 50 states (strongest in California, Arizona, Nevada, Oregon, Washington)
• Closing time: 18-30 days
• Experience required: None for strong profiles; preferred but not mandatory

California Advantages

Griffin Funding offers specific advantages for California investors:

Lower Minimums: In California, Griffin will consider 640 credit (vs. 660 elsewhere) and 0.95 DSCR (vs. 1.0 elsewhere).

Higher LTV: California borrowers with strong profiles can access up to 85% LTV, reducing down payment requirements.

Faster Processing: California deals often close faster (18-25 days) due to local expertise and relationships with California title companies.

Regulatory Expertise: California has among the strictest lending regulations. Griffin's deep experience navigating California Department of Real Estate requirements provides peace of mind.

Condo Expertise: California has unique condo association requirements. Griffin knows which associations are financeable and which aren't.

Interest Rates and Pricing

Griffin Funding's rates are highly competitive, especially in California.

Current Rate Structure (Q1 2026)

Base Rates:

• 30-year fixed: 6.99% - 10.25%
• 5/1 ARM: 6.74% - 10.00%
• 7/1 ARM: 6.875% - 10.125%
• 10/1 ARM: 6.99% - 10.25%

Pricing Adjustments

Credit Score:

• 780+: -0.375%
• 760-779: -0.25%
• 740-759: -0.125%
• 720-739: Base rate
• 700-719: +0.25%
• 680-699: +0.50%
• 660-679: +0.75%
• 640-659: +1.00% (California only)

DSCR Ratio:

• 1.40+: -0.25%
• 1.30-1.39: -0.125%
• 1.20-1.29: Base rate
• 1.10-1.19: +0.25%
• 1.00-1.09: +0.50%
• 0.95-0.99: +0.875% (California only)

Loan-to-Value:

• 50-65% LTV: -0.375%
• 65-70% LTV: -0.25%
• 70-75% LTV: Base rate
• 75-80% LTV: +0.25%
• 80-85% LTV: +0.75% (California only, requires 740+ credit and 1.25+ DSCR)

Location:

• California: Base rate
• Arizona, Nevada, Oregon, Washington: Base rate
• Other Western states: +0.125%
• Midwest/South: +0.25%
• East Coast: +0.25%

This location-based pricing reflects Griffin's geographic expertise.

Property Type:

• Single-family: Base rate
• 2-unit: +0.125%
• 3-4 unit: +0.25%
• Condo (warrantable): +0.125%
• Condo (non-warrantable): +0.50% (California); +0.75% (elsewhere)

Loan Amount:

• $1M-$2M: -0.125%
• $2M+: -0.25% (negotiable further on $3M+)

Griffin actively pursues larger loans in California where property values support them.

Fee Structure

Origination: 0.75-2.0 points

• California loans over $750K: 0.75-1.0 points
• California loans $400K-$750K: 1.0-1.5 points
• California loans under $400K: 1.5-2.0 points
• Out-of-state: Add 0.25-0.50 points

The California pricing advantage extends to fees, not just rates.

Processing: $695 (included in origination for California loans over $500K)

Underwriting: $500

Third-Party Fees:

• Appraisal: $500-$850 (higher in California due to property values)
• Credit report: $50
• Flood certification: $20
• Tax service: $85
• Title and escrow: Market rate

Prepayment Penalties:

Option 1: Standard penalty (3-2-1)

• Year 1: 3%
• Year 2: 2%
• Year 3: 1%
• Year 4+: None

Option 2: Extended penalty (5-4-3-2-1) for -0.25% rate discount

• Available in California only
• Reduces rate in exchange for longer penalty period

Option 3: No penalty

• Add 0.50% to rate
• Can refinance or sell anytime

Eligibility Requirements

Borrower Requirements

Credit Score: 660 minimum nationwide; 640 minimum in California with:

• 25%+ down payment
• DSCR 1.10+
• 12 months reserves
• Clean credit past 24 months

Credit History: Must show responsible credit management for 24 months. Isolated late payments acceptable with explanation; patterns result in denial.

Bankruptcies and Foreclosures:

• Chapter 7: 4 years from discharge (3 years in California with compensating factors)
• Chapter 13: 2 years from discharge
• Foreclosure: 4 years from completion (3 years in California)
• Short sale: 2 years from completion

California's foreclosure laws make lenders more comfortable with shorter seasoning in that state.

Experience: Not required, but experienced investors (2+ rentals) may receive -0.125% rate discount.

Reserves: Based on portfolio size:

• 1-4 financed properties: 6 months PITIA
• 5-10 financed properties: 9 months PITIA
• 11+ financed properties: 12 months PITIA
• California properties: Add 3 months (9/12/15 months respectively)

California's higher reserve requirements reflect higher property values and operating costs.

Citizenship: U.S. citizens, permanent residents, and work visa holders (H-1B, L-1). Foreign nationals considered in California only with 35%+ down payment.

Property Requirements

Eligible Properties:

• Single-family residences
• 2-4 unit multifamily
• Condos (warrantable and select non-warrantable)
• Townhomes
• PUDs

California Condo Expertise: Griffin has detailed knowledge of California condo association requirements and can finance many non-warrantable condos that other lenders decline.

Property Condition: Must be habitable and rent-ready. Light cosmetic repairs acceptable; structural or mechanical issues require bridge financing.

Location: All 50 states, but best pricing and terms in California and Western states.

Minimum Value: $150,000 (higher in California markets—effectively $300K+ due to property values)

Occupancy: Investment property only

DSCR Calculation

Griffin uses industry-standard methodology with one California-specific consideration:

Income: Lower of actual rent or appraised market rent. No vacancy deduction.

Expenses: P&I + taxes + insurance + HOA + Mello-Roos (California) + any other property debt

California Note: Mello-Roos taxes (special assessment districts common in newer California developments) are included in debt service, which can significantly impact DSCR. Many out-of-state lenders miss this, leading to declined loans at the last minute.

Short-Term Rentals: Accepted with documentation:

• 24 months operating history required
• Tax returns showing rental income
• Platform income reports (Airbnb, VRBO)
• Income calculated at 75% of trailing 12-month average

Application and Underwriting Process

Griffin Funding's process is streamlined, especially in California.

Timeline

Day 1-2: Application

• Online application (15 minutes)
• Soft credit pull
• Property evaluation
• Preliminary quote within 24 hours (California) or 48 hours (elsewhere)

Day 2-5: Documentation Required documents:

• Photo ID
• Lease agreement or rent roll
• Insurance quote
• 3 months bank statements
• Purchase contract or mortgage statement
• LLC documents (if applicable)

Day 5-12: Appraisal

• Appraisal ordered
• California appraisals: 5-7 days typical
• Out-of-state appraisals: 7-10 days
• Appraisal includes rental market analysis

Day 12-18: Underwriting

• Full underwriting review
• Title ordered
• Conditional approval
• Typical conditions: insurance, updated reserves, lease verification

Day 18-23: Clear to Close

• Conditions satisfied
• Final underwriting review
• Clear to close issued

Day 23-28: Closing

• Closing disclosure (3-day waiting period)
• Sign with title company
• Fund 1-2 days after signing

Average Timeline:

• California: 20-25 days
• Western states: 23-28 days
• Other states: 25-30 days

What Makes Griffin Fast in California

• Local underwriters familiar with California regulations
• Established relationships with California title companies
• Understanding of California-specific issues (Mello-Roos, seismic requirements, condo peculiarities)
• Higher loan volume in California creates process efficiency

Pros of Griffin Funding

1. Exceptional California Expertise

Griffin's deep California knowledge prevents issues that plague out-of-state lenders: Mello-Roos, non-warrantable condos, seismic requirements, DRE compliance.

2. Competitive California Rates

For California properties, Griffin's rates are often 0.25-0.50% lower than national lenders, saving thousands annually.

3. Lower Fees in California

Origination fees as low as 0.75 points for large California loans vs. 1.5-2.5 points at many competitors.

4. Higher LTV Available

The 85% LTV option (California, strong profiles) allows investors to preserve capital for multiple acquisitions.

5. Fast California Closings

The 18-25 day timeline for California deals beats most competitors.

6. No Experience Required

First-time rental investors can access competitive rates without penalties for lack of history.

7. Strong Technology

Online portal with real-time updates, document uploads, and clear communication.

8. Accepts Short-Term Rental Income

With proper documentation, Griffin finances Airbnb properties—important in California vacation markets.

9. Flexible on Complex Entity Structures

Comfortable with series LLCs, trusts, partnerships—common among sophisticated California investors.

10. Professional Service

Responsive communication, knowledgeable staff, and smooth closings.

Cons of Griffin Funding

1. Location-Based Pricing Disadvantage Outside California

The +0.25% rate adjustment for East Coast and Midwest properties makes Griffin uncompetitive outside their core geography.

2. Higher California Reserve Requirements

California properties require extra reserves (9/12/15 months vs. 6/9/12 months), tying up more capital.

3. Less Competitive for Marginal Borrowers

Borrowers with 640-680 credit or DSCR below 1.0 will find better rates at New Silver or Easy Street Capital.

4. Property Condition Pickiness

Griffin is stricter on condition than some competitors, pushing value-add properties to bridge financing.

5. Limited Footprint Outside West Coast

While available in all 50 states, Griffin's expertise and competitive pricing diminish east of the Rockies.

6. Higher Appraisal Costs

California appraisals run $700-$850 vs. $400-$500 in many other states.

7. Processing Fees Not Always Waived

Outside California, the $695 processing fee adds to costs where competitors include it in origination.

8. Experience Discount is Modest

The -0.125% discount for experienced investors is smaller than RCN's -0.25% or Visio's tiered approach.

Griffin Funding vs. Competitors

vs. Visio Lending

Geography: Griffin better for California; Visio better nationwide
Rates: Griffin 0.125-0.25% better in California; Visio 0.25% better elsewhere
Experience: Visio requires experience; Griffin doesn't
Verdict: Griffin for California first-timers; Visio for experienced investors elsewhere

vs. Lima One Capital

California: Griffin 0.25-0.50% better rates
Elsewhere: Lima One competitive or better
Product Suite: Lima One broader (construction, etc.)
Verdict: Griffin for California; Lima One for nationwide portfolio

vs. Kiavi

Speed: Kiavi slightly faster (15-20 days nationwide)
California Rates: Griffin better by 0.25%
California Expertise: Griffin superior on complex California issues
Verdict: Griffin for California; Kiavi for speed elsewhere

vs. New Silver

Flexibility: New Silver more flexible (lower minimums)
California Rates: Griffin 0.50-0.75% lower
Verdict: Griffin for strong California borrowers; New Silver for marginal situations

vs. RCN Capital

California: Griffin significantly better (rates and expertise)
Product Mix: RCN better for active flippers needing bridge loans
Verdict: Griffin for California buy-and-hold; RCN for flip-heavy portfolios

Who Should Choose Griffin Funding?

Ideal Candidates

California Investors: Griffin's sweet spot. Competitive rates, low fees, fast closings, local expertise.

West Coast Investors: Arizona, Nevada, Oregon, Washington investors get similar benefits to California, just slightly less pronounced.

High-Balance California Borrowers: Loans above $1M in California get exceptional pricing (0.75-1.0 point origination, rate discounts).

California Condo Investors: Griffin's expertise with California condo associations prevents declined loans that plague other lenders.

Short-Term Rental Investors: In California vacation markets (Palm Springs, Lake Tahoe, coastal areas), Griffin's STR acceptance is valuable.

First-Time California Investors: No experience penalty makes Griffin accessible for first California rental purchases.

Who Should Look Elsewhere

East Coast/Midwest Investors: The +0.25% location adjustment makes Griffin uncompetitive. Use Visio, Lima One, or regional lenders.

Marginal Credit Borrowers: 640-680 credit gets better pricing at New Silver or Easy Street.

Very Small Loans: Under $200K, the minimum fees make Griffin expensive. Local portfolio lenders may be better.

Value-Add Investors: Strict condition requirements mean distressed properties need bridge financing first.

Speed-Critical Non-California Buyers: Outside California, faster options exist.

Tips for Getting Best Terms from Griffin

1. Emphasize California Properties

If buying in California, start with Griffin. Their competitive advantage is clear.

2. Leverage Large Loan Sizes

Push for fee reductions on loans above $750K. Griffin is motivated to win large California deals.

3. Highlight Short-Term Rental Potential

If the property could work as STR, document the income potential. Griffin is comfortable with this.

4. Consider 85% LTV Option

If you have 740+ credit and 1.25+ DSCR, ask about 85% LTV in California. Not always advertised but available.

5. Optimize DSCR for California

California's higher taxes and insurance mean DSCR is often tighter. Structure down payment to ensure DSCR clears 1.20 for best pricing.

6. Build Reserves

California requires higher reserves anyway. Having 12+ months positions you for negotiating better terms.

7. Navigate California Condo Issues Early

Get Griffin involved early if buying a California condo. Their expertise prevents last-minute issues.

8. Consider Longer Prepayment Penalty

In California only, the 5-year penalty option saves 0.25% on rate. Run the numbers.

Real-World Case Studies

Case Study 1: California First-Time Investor

• Profile: 710 credit, no rental experience, purchasing first investment property
• Property: Single-family in Sacramento, $450K purchase, $2,950 rent, DSCR 1.22
• Loan: 80% LTV, 30-year fixed at 7.50%, 1.0 point origination
• Outcome: Excellent rate for first-timer. Closed in 22 days. Griffin's California expertise and no-experience-required policy made the deal smooth.

Case Study 2: High-Balance Los Angeles Investor

• Profile: 760 credit, 4 existing rentals, purchasing 5th property
• Property: Duplex in Los Angeles, $1.2M purchase, $7,200 rent, DSCR 1.25
• Loan: 75% LTV, 30-year fixed at 6.875%, 0.75 points origination
• Outcome: Outstanding pricing due to credit, loan size, and California location. Closed in 20 days.

Case Study 3: Out-of-State Comparison

• Profile: 720 credit, experienced investor, purchasing in Florida
• Property: Single-family in Tampa, $320K purchase, $2,400 rent, DSCR 1.18
• Loan Quote from Griffin: 80% LTV, 30-year fixed at 8.25%, 2.0 points
• Loan Quote from Lima One: 80% LTV, 30-year fixed at 7.875%, 1.5 points
• Outcome: Went with Lima One due to better pricing outside California. Griffin was honest that they weren't competitive for this geography.

The Verdict

Rating: 4.6/5 (for California); 3.5/5 (for other states)

Griffin Funding is exceptional for California and West Coast real estate investors. The combination of competitive rates, local expertise, low fees, and fast closings makes them a top choice in their core geography.

Outside California, Griffin is adequate but unexceptional. The location-based rate adjustments make them less competitive than national lenders who don't penalize geography.

Choose Griffin when:

• Buying in California (Griffin's sweet spot)
• Investing in Arizona, Nevada, Oregon, or Washington
• Financing California condos (especially non-warrantable)
• Working with large California loans ($750K+)
• Need fast California closings (18-25 days)
• Financing California short-term rentals

Look elsewhere when:

• Buying outside Western states
• Credit is below 680
• DSCR is below 1.0
• You're extremely cost-sensitive on small loans
• You need maximum flexibility on marginal deals

Bottom Line

Griffin Funding exemplifies the value of local expertise in real estate lending. Their deep California knowledge, regulatory fluency, and market relationships create genuine competitive advantages that translate to better rates, lower fees, and smoother closings.

For California investors, Griffin should be at the top of your quote list alongside Visio and Lima One. The combination of no-experience-required accessibility with competitive pricing makes them suitable for both first-timers and experienced investors.

For investors outside California, Griffin is worth a quote but likely won't be your best option. The location-based pricing adjustments erode their competitiveness east of the Rockies.

The key takeaway: choose Griffin for California; consider alternatives elsewhere. When you're buying in the Golden State, Griffin's gold-standard local expertise and competitive pricing make them very hard to beat.