Question 1

Can I use projected rent on a vacant Foster City property?

Accepted Answer

Yes, but the appraiser determines market rent. Your pro forma doesn't matter—only the appraisal's rent schedule counts for DSCR calculation.

Question 2

What DSCR do I need for the best rate?

Accepted Answer

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.

Question 3

Do DSCR loans allow cash-out refinancing?

Accepted Answer

Yes, but expect rate premiums of 0.25-0.50% compared to purchase loans. Maximum cash-out typically caps at 75% LTV.

Question 4

How do Foster City HOAs affect my loan?

Accepted Answer

Lenders subtract HOA fees from gross rent before calculating DSCR. High HOAs can drop you below qualifying ratios even with strong rent.

Question 5

Can I close a DSCR loan in under 30 days?

Accepted Answer

Possible with clean title and a cooperative appraiser, but 30-45 days is standard. Appraisal delays are the main wildcard in San Mateo County.

DSCR Loans in Foster City: Finance Rentals Without Income Verification