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Foster City's rental market makes DSCR loans particularly relevant for Bay Area investors. The property's rent determines your approval, not your W-2 or tax returns.
Recent developments in non-QM lending mean more options for real estate investors. Some lenders now accept crypto holdings as reserves, expanding what counts as qualifying assets.
DSCR Loans in Foster City
You need a DSCR of at least 1.0, meaning rent covers your monthly payment. Most lenders prefer 1.25 to get their best rates.
Expect 20-25% down on single-family rentals. Credit minimums run 640-680 depending on the lender and loan amount.
The property must be investment only—no owner-occupied deals. You can finance 1-4 units or condos that meet rental guidelines.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Foster City.
Foster City's rental market makes DSCR loans particularly relevant for Bay Area investors. The property's rent determines your approval, not your W-2 or tax returns.
Recent developments in non-QM lending mean more options for real estate investors. Some lenders now accept crypto holdings as reserves, expanding what counts as qualifying assets.
You need a DSCR of at least 1.0, meaning rent covers your monthly payment. Most lenders prefer 1.25 to get their best rates.
We work with 200+ wholesale lenders who price DSCR loans differently. Rate spreads between lenders can hit 0.75% on the same deal.
Some lenders cap at $2M, others go to $5M. A few accept properties with tenants already in place, which matters in Foster City's tight rental market.
Non-QM lenders price on risk layers. Your DSCR ratio, down payment, and credit score all move the rate in different directions.
Most investors stumble on the appraisal. You need a rent schedule showing market rent, not what you hope to charge.
Foster City properties often appraise at lower rent-to-value ratios than East Bay equivalents. Plan for a higher down payment if your DSCR is borderline.
Timing matters with rate volatility expected through 2026. Lock when your DSCR clears 1.25—waiting for perfection costs deals.
Bank statement loans require 12-24 months of statements and income calculations. DSCR skips that entirely—just show the rent.
Hard money works for fix-and-flip, but rates run 9-12%. DSCR loans for stabilized rentals price 2-4% lower with longer terms.
Conventional investor loans beat DSCR on rate if you can document income. But most serious investors prefer DSCR's simplicity after their first few properties.
Foster City's planned community structure means HOAs on most properties. Lenders deduct HOA fees when calculating DSCR, which tightens your ratio.
Waterfront and lagoon-adjacent properties command higher rents but appraise conservatively. Expect appraisers to average across the city, not just comparable waterfront units.
San Mateo County taxes run higher than many Bay Area counties. Make sure your DSCR calculation includes actual tax bills, not Zillow estimates.
Yes, but the appraiser determines market rent. Your pro forma doesn't matter—only the appraisal's rent schedule counts for DSCR calculation.
Most lenders tier pricing at 1.0, 1.15, and 1.25. You'll see the tightest rates at 1.25 or higher with 25% down.
Yes, but expect rate premiums of 0.25-0.50% compared to purchase loans. Maximum cash-out typically caps at 75% LTV.
Lenders subtract HOA fees from gross rent before calculating DSCR. High HOAs can drop you below qualifying ratios even with strong rent.
Possible with clean title and a cooperative appraiser, but 30-45 days is standard. Appraisal delays are the main wildcard in San Mateo County.