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in Los Altos Hills, CA
Los Altos Hills sits at the heart of Silicon Valley's job boom. OpenAI just leased a massive Mountain View complex nearby, and the median household income in Santa Clara County hits $159,674.
Conventional loans are the standard path for owner-occupants. DSCR loans (Debt Service Coverage Ratio) let investors and business owners qualify on rental income instead.
Conventional loans are the backbone of residential lending in Los Altos Hills. You qualify on W-2 income, 1099 income, or a mix. Lenders want to see two years of tax returns and a credit score of 620 or higher, though 740+ gets the best rates.
Down payments range from 3% to 20%. Put down less than 20% and you'll carry mortgage insurance (PMI) until you hit 80% loan-to-value. The 2026 conforming limit of $1,249,125 covers most Los Altos Hills purchases, but jumbo loans apply above that threshold.
DSCR loans let investors and business owners qualify on rental income instead of W-2 wages. The lender calculates your debt service coverage ratio—rental income divided by total debt payments. A ratio of 1.0 or higher means the property pays for itself.
DSCR loans typically require 20% to 25% down and a credit score of 660 or higher. They work for rental properties, multi-unit buildings, and commercial real estate.
The biggest split is income type. Conventional buyers prove personal income through W-2s and tax returns. DSCR buyers prove the property itself generates enough rental income to cover the loan.
Down payment gaps matter too. Conventional lets you start at 3% down with PMI. DSCR typically starts at 20% down with no mortgage insurance. Credit requirements differ: conventional floors at 620 FICO, DSCR at 660. For owner-occupants, conventional wins.
Pick conventional if you're buying a home to live in. You have W-2 income or documented self-employment income. The median Santa Clara County household earns $159,674—enough to qualify for a conforming loan up to $1,249,125 with standard down payments.
Pick DSCR if you're an investor or business owner buying a rental property. Your personal income might be irregular or low, but the rental income from this property (or others) covers the debt.
Yes. Conventional lenders accept rental income from investment properties, but they apply strict deductions and require two years of tax returns.
Yes — 20% down is the only way to skip PMI on a conventional loan. Put down 3% to 19.9% and you'll carry PMI until you reach 80% loan-to-value. DSCR loans don't use PMI but typically require 20% to 25% down from the start.
Most DSCR lenders require 660 FICO or higher. Conventional loans accept 620 FICO, though rates improve above 740. Both programs are available in Santa Clara County's high-cost market.
No. DSCR loans are for investment properties only—rentals, multi-unit buildings, commercial real estate. If you're buying a home to live in, conventional is your path.
Conventional typically closes faster. DSCR requires more underwriting because lenders verify rental income and property cash flow. Expect conventional in 30–45 days, DSCR in 45–60 days.