Question 1

What DSCR ratio do I need to qualify in Los Gatos?

Accepted Answer

Most lenders want 1.1 or higher. At Los Gatos price points, you'll need strong rental income to hit that threshold.

Question 2

Can I use a DSCR loan to buy under an LLC?

Accepted Answer

Yes. Most non-QM lenders allow LLC vesting on DSCR loans. This is a common structure for California investors.

Question 3

Do short-term rentals qualify for DSCR in Los Gatos?

Accepted Answer

Some lenders accept Airbnb income, but many discount it 25-30%. You need the right lender for that property type.

Question 4

How much do I need to put down on a DSCR loan?

Accepted Answer

Expect 20-25% minimum. Some lenders require more on high-balance or jumbo DSCR loans in California.

Question 5

Is a DSCR loan a good fit for Los Gatos investment properties?

Accepted Answer

It depends on the rent-to-price ratio. Los Gatos values are high — your rental income needs to support the payment.

Question 6

Can I refinance an existing rental into a DSCR loan?

Accepted Answer

Yes. Cash-out refinances are available on DSCR programs. This is a common move for equity-rich California investors.

DSCR Loans in Los Gatos, CA — Qualify on Rental Income