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in Los Altos, CA
Los Altos is one of the most expensive markets in Santa Clara County. The loan you choose matters more here than almost anywhere else in California.
Conventional loans serve primary residence buyers with strong W-2 income. DSCR loans are built for investors who want to qualify on rental cash flow alone.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. They offer competitive rates for borrowers with solid credit and documented income.
You'll need at least a 620 credit score. Put down 20% and you skip private mortgage insurance entirely.
DSCR loans qualify you based on the rental property's income — not yours. Lenders look at whether rent covers the mortgage payment.
Most lenders want a DSCR of 1.0 or higher. That means monthly rent at or above the full mortgage payment. Some programs go below 1.0 with a larger down payment.
HousingWire flagged the 30-year fixed hitting 6.57% with applications down over 10%. DSCR borrowers feel that rate pressure directly — higher rates shrink your coverage ratio fast.
Conventional loans price better for owner-occupants. DSCR loans carry an investor premium. Rates vary by borrower profile and market conditions.
Down payment is a real dividing line. Conventional allows as little as 3% down for primary homes. DSCR typically requires 20-25% — Los Altos price points make that a serious cash commitment.
If you earn W-2 income and you're buying a home to live in, conventional is the call. Lower rate, lower down payment, cleaner approval process.
If you're buying a rental property and your tax returns don't show enough income to qualify, DSCR is built for you. Self-employed investors and landlords use it constantly.
Some Los Altos buyers do both — conventional on their primary, DSCR on investment properties they want to keep off their personal debt load.
Yes, but rents must cover your mortgage payment. High Los Altos prices make achieving a 1.0 DSCR harder — run the numbers carefully.
Yes. Conventional lenders can count rental income, but they still verify your personal income and debt-to-income ratio.
Most DSCR lenders want 660 or higher. Better scores get better rates and lower reserve requirements.
Yes. DSCR loans are one of the few programs that allow title to be held in an LLC. Conventional loans do not allow this.
DSCR loans can close faster since there's no income verification process. Conventional loans need full doc review, which takes longer.