Question 1

Can I use projected rent for a vacant Atherton investment property?

Accepted Answer

Yes, lenders accept professional rent surveys or appraiser rent opinions for vacant properties. They'll use conservative estimates based on comparable rentals in Atherton and surrounding San Mateo County communities to calculate your DSCR.

Question 2

What DSCR ratio do I need for the best rates on an Atherton property?

Accepted Answer

Ratios of 1.25 or higher typically access the most competitive pricing, while 1.0-1.24 remains acceptable but at higher rates. Rates vary by borrower profile and market conditions, with credit score and down payment also influencing terms.

Question 3

Do DSCR loans work for short-term rental properties in Atherton?

Accepted Answer

Some DSCR lenders accept short-term rental income with sufficient operating history and documentation. Local regulations must permit such use, and lenders typically require 12-24 months of rental history to verify sustainable income.

Question 4

How does my personal credit affect DSCR loan approval?

Accepted Answer

Credit scores impact rate and terms but carry less weight than conventional loans. Most DSCR programs accept 660+ scores, with stronger property performance ratios sometimes compensating for moderate credit challenges.

Question 5

Can I finance multiple Atherton investment properties with DSCR loans?

Accepted Answer

Yes, DSCR financing supports portfolio expansion since each property qualifies independently based on its own rental income. This approach doesn't compound debt-to-income ratios the way conventional investor loans do.

DSCR Loans for Atherton Investment Properties: Qualify by Rental Income, Not W-2s