Question 1

What DSCR do I need to qualify in Palo Alto?

Accepted Answer

Most lenders require 1.0 DSCR minimum — rent covers the full payment. Some portfolio lenders approve 0.9 DSCR with higher down payments and rates.

Question 2

Can I use projected rent for a vacant property?

Accepted Answer

Yes. Lenders order appraisals with rental income opinions. The appraiser's projected rent determines your DSCR for vacant properties.

Question 3

Do I need tax returns for DSCR loans?

Accepted Answer

No personal tax returns required. Lenders review the property's rental income only, not your W-2s or business returns.

Question 4

How much down payment for Palo Alto DSCR loans?

Accepted Answer

15-25% down depending on DSCR strength and credit score. Properties with 1.2+ DSCR qualify for 15% down with some lenders.

Question 5

Can I buy multiple rentals with DSCR loans?

Accepted Answer

Yes. DSCR loans have no property count limits like conventional loans do. Each property qualifies independently based on its own cash flow.

Question 6

What if my Palo Alto condo has high HOA fees?

Accepted Answer

HOA fees count in your debt service calculation. Lenders divide rent by total PITI plus HOA to determine DSCR, which lowers your ratio.

DSCR Loans in Palo Alto: Finance Rentals Without W-2s