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San Mateo County's median household income of $156,000 anchors one of California's strongest rental markets. Investment properties in San Carlos are moving quickly as landlords capitalize on steady tenant demand and appreciation.
DSCR financing lets investors qualify based on the property's income, not personal tax returns. This matters in San Carlos, where rental yields support larger portfolios without the documentation burden of traditional lending.
620–640
Minimum FICO
20–25%
Typical Down Payment
Property cash flow
Qualification
30–45 days
Close Timeline
DSCR Loans in San Carlos
DSCR loans require a minimum debt-service coverage ratio of 1.0 to 1.25, meaning the property's annual rental income must cover its debt payments. Most lenders want 620+ FICO and 20% to 25% down on investment properties in San Carlos.
San Mateo County's $156,000 median household income translates to strong rental demand. A typical San Carlos investment property generating $3,500 to $4,500 monthly rent qualifies easily under DSCR rules, even if your personal income is lower.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in San Carlos.
San Mateo County's median household income of $156,000 anchors one of California's strongest rental markets. Investment properties in San Carlos are moving quickly as landlords capitalize on steady tenant demand and appreciation.
DSCR financing lets investors qualify based on the property's income, not personal tax returns. This matters in San Carlos, where rental yields support larger portfolios without the documentation burden of traditional lending.
DSCR loans require a minimum debt-service coverage ratio of 1.0 to 1.25, meaning the property's annual rental income must cover its debt payments. Most lenders want 620+ FICO and 20% to 25% down on investment properties in San Carlos.
DSCR lending in California has expanded significantly. Portfolio lenders, credit unions, and mortgage banks all compete for investment deals. Rates typically run 0.5% to 1.0% above conforming fixed rates because the lender carries occupancy risk.
Closing timelines for DSCR loans run 30 to 45 days. Underwriting focuses on the property appraisal, lease agreements, and rent rolls. Brokers with direct lender relationships can often lock rates faster than retail banks.
DSCR loans make sense in San Carlos for investors with multiple properties or strong rental income but inconsistent W-2 documentation. If your property generates $4,000+ monthly rent, DSCR often beats stated-income or bank-statement programs.
The trade-off: DSCR rates run higher than conforming conventional. If you can document personal income and the property is your primary residence, a standard conventional loan usually costs less.
Conventional loans require full personal income documentation and typically 20% down. DSCR loans ignore your W-2s and focus on the property's rent. For San Carlos investors with multiple units or self-employment income, DSCR removes the documentation headache.
The cost: DSCR rates run higher because the lender carries occupancy risk. Conventional loans are cheaper if you can prove stable W-2 income. Call for today's DSCR and conventional quotes to compare the actual rate difference on your deal.
Burlingame's 220 Park office tower just hit 100% occupancy with tenants like Confluent and Upstart. That kind of commercial momentum drives demand for rental housing across San Mateo County, supporting the cash flow that DSCR loans depend on.
San Mateo City Council is weighing a regional transit tax measure for Caltrain and BART. Better transit access typically boosts rental demand and property values—a tailwind for San Carlos investors holding long-term.
Most lenders require 620 to 640 FICO for DSCR loans. Some portfolio lenders go as low as 600 with 25% down and strong property cash flow. Call for your specific scenario.
No. DSCR loans qualify based on the property's rental income alone. Your W-2s, tax returns, and personal debt don't factor into the decision. The property's lease and rent roll are what matter.
Typical DSCR loans require 20% to 25% down. Some lenders offer 15% down with strong FICO and a DSCR above 1.25. The property's cash flow and your credit score determine the exact requirement.
Yes. DSCR loans work for single-family rentals, duplexes, and small multifamily properties. San Mateo County's strong rental market makes DSCR a solid choice for investors buying in San Carlos.
DSCR ignores your personal income; conventional loans require full W-2 documentation. DSCR rates run 0.5% to 1.0% higher. If you can document stable income, conventional is cheaper.