Question 1

What DSCR ratio do I need to qualify in Los Altos Hills?

Accepted Answer

Most lenders want a 1.20 DSCR or higher. Some programs allow 1.0, but pricing gets worse below 1.20.

Question 2

Can I use projected rent on a new purchase?

Accepted Answer

Yes. Lenders use a third-party rent schedule — typically a 1007 appraisal form — to estimate market rent on a vacant property.

Question 3

Does DSCR work for jumbo loan amounts?

Accepted Answer

Yes, jumbo DSCR programs exist through non-QM wholesale lenders. Los Altos Hills prices typically push deals into jumbo territory.

Question 4

Can I use ADU rental income in my DSCR calculation?

Accepted Answer

Some lenders count ADU income, others don't. Confirm program guidelines before structuring your deal around it.

Question 5

Do DSCR loans require an LLC or can I borrow personally?

Accepted Answer

Both work. Some investors prefer LLC vesting for liability protection. Lender guidelines vary, so check early.

Question 6

How fast can a DSCR loan close?

Accepted Answer

Typically 21-30 days with a complete file. Non-QM lenders move slower than conventional — build that into your offer timeline.

DSCR Loans in Los Altos Hills: Finance Investment Property on Rental Income