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Milpitas sits at the heart of Silicon Valley's rental boom. OpenAI's new Mountain View office complex signals continued tech expansion that drives tenant demand and rental rates higher across the region.
DSCR loans let you qualify based on the property's income, not your personal income. That matters in Milpitas, where a $1,200,000 rental property might generate strong cash flow but your W-2 income alone wouldn't support the loan amount.
620
Minimum FICO
20–25%
Typical Down Payment
Property rental income
Qualification Basis
30–45 days
Closing Timeline
DSCR Loans in Milpitas
DSCR loans require a minimum debt-service coverage ratio of 1.0 to 1.25, depending on the lender. That means the property's annual rental income must cover the loan payment and other debts. Most lenders want a FICO score of 620 or higher and 20% to 25% down.
Santa Clara County's median household income of $159,674 supports properties in the $800,000 to $1,100,000 range for owner-occupied purchases. For rental properties, the math flips — the property's income, not yours, determines qualification.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Milpitas.
Milpitas sits at the heart of Silicon Valley's rental boom. OpenAI's new Mountain View office complex signals continued tech expansion that drives tenant demand and rental rates higher across the region.
DSCR loans let you qualify based on the property's income, not your personal income. That matters in Milpitas, where a $1,200,000 rental property might generate strong cash flow but your W-2 income alone wouldn't support the loan amount.
DSCR loans require a minimum debt-service coverage ratio of 1.0 to 1.25, depending on the lender. That means the property's annual rental income must cover the loan payment and other debts. Most lenders want a FICO score of 620 or higher and 20% to 25% down.
DSCR lending in California has grown sharply as investors seek alternatives to traditional rental-income documentation. Most lenders now offer DSCR products, but terms vary widely on FICO floors, down-payment minimums, and acceptable property types.
Brokers typically have faster access to DSCR programs than retail banks. Closing timelines run 30 to 45 days for DSCR loans, longer than owner-occupied conventional because underwriters verify rental history and lease agreements more thoroughly.
DSCR loans make sense in Milpitas when you're buying a multi-unit rental or a single-family home to lease. The property's cash flow, not your salary, qualifies you — that's powerful for investors with strong rental income but modest W-2 earnings.
DSCR doesn't work for owner-occupied homes. If you're buying to live in, conventional or FHA financing will be cheaper and faster. DSCR is purely an investor product.
Conventional rental loans require you to document personal income and typically ask for 25% down. DSCR lets you put 20% down and skips the personal-income verification if the property's rent covers the payment.
The tradeoff: DSCR rates run slightly higher than conventional because the lender relies on the property's income, not your creditworthiness. But if your W-2 is modest and the rental income is strong, DSCR pencils out better.
OpenAI's 450,000-square-foot Mountain View lease expansion signals sustained tech hiring and worker migration into the region. That drives rental demand in Milpitas, where single-family homes and small multifamily units command strong lease rates.
The Silicon Valley Lunar New Year celebration and Asia Live Food Emporium opening at Westfield Valley Fair reflect the area's cultural diversity and retail strength.
Most DSCR lenders require 20% to 25% down. Some programs go as low as 15% for strong cash-flow properties, but 20% is the standard floor.
Yes — most lenders require a FICO of 620 or higher. A few programs accept 600+, but 620 is the typical minimum. Higher scores (680+) get better rates.
No. DSCR loans are for investment properties only. If you're buying to occupy, conventional or FHA financing is the right path.
DSCR uses the property's rental income to qualify you; conventional uses your personal W-2 income. DSCR ignores your salary, which helps investors with strong cash flow but modest employment income.
That depends on the lender's minimum DSCR ratio (typically 1.0 to 1.25) and the loan term. A 1.0 ratio means annual rent must cover the annual loan payment. Call for a specific quote on your property.