Question 1

What DSCR do I need in San Mateo?

Accepted Answer

Most lenders require 1.0 minimum, meaning rent equals the payment. Properties near Caltrain hit 1.0-1.1 with 20-25% down based on current market rents.

Question 2

Can I use DSCR for a duplex or triplex?

Accepted Answer

Yes. Multi-unit properties often qualify easier because combined rents boost the ratio. Some lenders require 20-25% down on 2-4 units versus 15-20% on single-family.

Question 3

Do I need reserves for DSCR loans?

Accepted Answer

Most lenders want 6-12 months PITIA in reserves per property. Lower DSCR ratios or higher LTVs push reserve requirements toward the 12-month end.

Question 4

How do lenders calculate rent for new purchases?

Accepted Answer

They use appraiser market rent opinions or third-party rent surveys. If the property has a lease in place, they'll use actual rent but verify market support.

Question 5

Can I cash out equity with DSCR loans?

Accepted Answer

Yes, up to 75-80% LTV depending on DSCR and credit. Expect 45-day closings and slightly higher rates than rate-term refinances.

DSCR Loans in San Mateo: Finance Rentals Without W-2 Income