Loading
Loading
Union City sits in Alameda County where new restaurants and housing investments signal neighborhood momentum. Real estate investors here are building portfolios in a market where property values reflect strong regional demand.
DSCR loans let investors finance based on the property's income, not personal income. This matters when rental income outpaces W-2 earnings or when you own multiple properties.
620
Minimum FICO
20–25%
Typical Down Payment
1.0 or higher
DSCR Ratio Required
$1,249,125
2026 Conforming Limit
DSCR Loans in Union City
DSCR loans require a debt-service coverage ratio of 1.0 or higher—meaning the property's annual rental income must cover the loan payment. Most lenders want a 620+ FICO, though stronger credit opens better terms.
Down payments typically run 20% to 25% on investment properties. The county's median household income of $126,240 shows what local buyers earn, but DSCR qualification hinges on the property's cash flow, not your personal income.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Union City.
Union City sits in Alameda County where new restaurants and housing investments signal neighborhood momentum. Real estate investors here are building portfolios in a market where property values reflect strong regional demand.
DSCR loans let investors finance based on the property's income, not personal income. This matters when rental income outpaces W-2 earnings or when you own multiple properties.
DSCR loans require a debt-service coverage ratio of 1.0 or higher—meaning the property's annual rental income must cover the loan payment. Most lenders want a 620+ FICO, though stronger credit opens better terms.
DSCR lending in California has tightened since 2023, but solid programs remain for investors with documented rental income. Brokers can access portfolio lenders and correspondent banks that specialize in investment properties.
Underwriting typically takes 30 to 45 days for DSCR loans. Lenders want recent tax returns, lease agreements, and a clear picture of the property's income stream.
DSCR loans make sense in Union City when you're buying a rental property and your W-2 income doesn't reflect the investment's true earning power. If the property cash flows above 1.0, DSCR financing sidesteps the need to count your day job.
They don't work when the property barely breaks even or runs negative. A property that generates $800 monthly on a $2,000 payment won't qualify—the ratio falls short.
Conventional investment loans require full income documentation and typically cap at 75% LTV. DSCR loans also max out at 75% LTV but focus on the property's income instead of your personal earnings.
The trade-off: DSCR rates run slightly higher than conventional because lenders bear more risk. But if your rental income is strong and your W-2 is modest, DSCR often closes deals that conventional can't.
Alameda County's Measure W allocated $15 million for affordable housing projects, signaling long-term neighborhood investment. That kind of public funding supports property values and rental demand across the region.
New restaurants and commercial activity in nearby Oakland and Berkeley attract renters to the East Bay. Union City's proximity to these job centers makes rental properties here attractive to investors seeking stable tenants.
Most lenders require a 620 FICO minimum. Scores above 680 open access to better rates and terms. The property's cash flow matters more than your personal credit here.
Yes. DSCR loans work well for portfolio investors. Each property is underwritten on its own cash flow, so you can stack multiple properties without hitting personal income limits.
Expect 20% to 25% down on investment properties. Some lenders go as low as 15% for strong cash-flow properties, but 20% is the standard floor.
If the debt-service coverage ratio falls below 1.0, the loan won't qualify. The property's annual rental income must cover the annual loan payment.
Plan for 30 to 45 days. Lenders need recent tax returns, lease agreements, and proof of the property's income. Clear documentation speeds the process.