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Los Gatos is one of the most expensive rental markets in Santa Clara County. Strong tenant demand means investment properties here can generate serious cash flow.
DSCR loans skip personal income verification entirely. The property's rent covers your qualification — your W-2 is irrelevant.
620–660
Min Credit Score
1.1x
Min DSCR Ratio
20–25%
Down Payment
Fixed or ARM
Rate Type
Up to 30 years
Loan Term
DSCR Loans in Los Gatos
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by your total mortgage payment. A ratio of 1.0 means rent covers the payment exactly.
Most lenders want a DSCR of 1.1 or higher. Credit score minimums typically start at 620 to 660 depending on the lender. Rates vary by borrower profile and market conditions.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Los Gatos.
Los Gatos is one of the most expensive rental markets in Santa Clara County. Strong tenant demand means investment properties here can generate serious cash flow.
DSCR loans skip personal income verification entirely. The property's rent covers your qualification — your W-2 is irrelevant.
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by your total mortgage payment. A ratio of 1.0 means rent covers the payment exactly.
DSCR is a non-QM product. That means retail banks rarely offer it. You need a broker with access to wholesale non-QM lenders — not your local credit union.
We work with 200+ wholesale lenders at SRK CAPITAL. Several specialize in high-value California investment properties like you find in Los Gatos.
Los Gatos properties often push into jumbo territory. Not every DSCR lender handles loan amounts above $2M — you need to know which ones do before wasting time on applications.
Some lenders discount short-term rental income by 25-30% when calculating DSCR. If your property is listed on Airbnb, that underwriting difference can kill a deal.
Bank Statement loans also skip W-2 income. But they require 12-24 months of personal or business bank statements. DSCR requires none — just a rent appraisal or lease.
Hard Money loans close faster but carry much higher rates and short terms. DSCR loans offer 30-year fixed options. For a buy-and-hold Los Gatos rental, DSCR wins on structure.
Santa Clara County's high property values push most Los Gatos investment purchases well past conforming loan limits. You're almost always in jumbo DSCR territory here.
Los Gatos has a tight rental supply and proximity to major tech employers. Those factors support strong appraisal-based rent estimates — which directly boosts your DSCR.
Most lenders want 1.1 or higher. At Los Gatos price points, you'll need strong rental income to hit that threshold.
Yes. Most non-QM lenders allow LLC vesting on DSCR loans. This is a common structure for California investors.
Some lenders accept Airbnb income, but many discount it 25-30%. You need the right lender for that property type.
Expect 20-25% minimum. Some lenders require more on high-balance or jumbo DSCR loans in California.
It depends on the rent-to-price ratio. Los Gatos values are high — your rental income needs to support the payment.
Yes. Cash-out refinances are available on DSCR programs. This is a common move for equity-rich California investors.