Question 1

Can I use projected rent for DSCR if the property is vacant?

Accepted Answer

Yes, lenders use appraisal rent schedules for vacant units. You'll need market rent comps showing what the property should generate once leased.

Question 2

Do investor loans require higher down payments in East Palo Alto?

Accepted Answer

Not specifically by city, but high purchase prices often push borrowers into jumbo territory. That can mean 20-25% down instead of 15% minimums.

Question 3

How do lenders calculate DSCR on a duplex or triplex?

Accepted Answer

They divide total rental income by total debt service. If you occupy one unit, only the rental units count toward income for DSCR purposes.

Question 4

Can I finance a fix-and-flip with an investor loan?

Accepted Answer

DSCR loans don't work for flips since they require rental income. Use hard money or bridge financing for purchase, then refinance after renovation if you decide to hold.

Question 5

What credit score do I need for a second investment property?

Accepted Answer

Most lenders want 680+ once you own multiple financed properties. A few portfolio lenders will go to 640 with compensating factors like large reserves.

Question 6

How many reserves do I need for an East Palo Alto rental?

Accepted Answer

Expect 6-12 months PITIA per financed property in your name. Higher reserve requirements kick in once you exceed four investment properties.

Investor Loans in East Palo Alto: Financing Silicon Valley Rental Properties