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Palo Alto is one of the most expensive markets in the country. Entry prices are high, but rental demand from tech workers keeps income potential strong.
Investors here aren't chasing appreciation alone. Strong lease rates make cash-flow underwriting viable, especially for multi-unit or ADU-equipped properties.
680+
Min Credit Score
20-25%
Down Payment
Not Required (DSCR)
Income Docs
21-30 Days
Typical Close Time
Non-QM
Loan Type
Investor Loans in Palo Alto
Most investor loans in Palo Alto run through non-QM programs. Lenders qualify you on the property's income, not your W-2 or tax returns.
DSCR loans — where rent covers the mortgage — are the most common fit. You typically need a 680+ credit score and 20-25% down.
Local decision guide
Use this guide to connect investor loans eligibility, lender expectations, and local market factors before comparing payment options in Palo Alto.
Palo Alto is one of the most expensive markets in the country. Entry prices are high, but rental demand from tech workers keeps income potential strong.
Investors here aren't chasing appreciation alone. Strong lease rates make cash-flow underwriting viable, especially for multi-unit or ADU-equipped properties.
Most investor loans in Palo Alto run through non-QM programs. Lenders qualify you on the property's income, not your W-2 or tax returns.
Retail banks rarely price investor loans competitively. Wholesale lenders built for non-QM deals offer better rates and more flexible underwriting.
We shop across 200+ wholesale lenders to match your deal — whether it's a single-family rental, small multi-unit, or short-term rental. Rates vary by borrower profile and market conditions.
The biggest mistake investors make in Palo Alto: assuming rent will easily cover debt service. Run your DSCR at current market rents, not projected ones.
At these price points, many deals need an interest-only period to make the numbers work. That's not a red flag — it's a structure we use regularly on high-value acquisitions.
DSCR loans fit stabilized rentals. Hard money works for fix-and-flip. Bridge loans close fast when you need to act before a better-rate loan is ready.
Interest-only loans reduce your monthly payment in year one. On a Palo Alto purchase, that difference can be significant. Each structure serves a different investment strategy.
Santa Clara County has strict ADU ordinances, but Palo Alto allows them. An ADU can add rental income that materially improves your DSCR calculation.
Short-term rentals face city regulations in Palo Alto. Confirm rental type before structuring your loan — some lenders won't underwrite STR income without verified history.
Not with a DSCR loan. The property's rental income qualifies you. No W-2s or tax returns required.
Most non-QM investor programs want 680 or above. Some hard money lenders go lower but charge more.
Some lenders accept market rent appraisals. Others want a signed lease. We'll match you to the right program.
DSCR loans typically close in 21-30 days. Hard money can close in under two weeks for competitive offers.
Some lenders allow it with 12-24 months of STR income history. Not all programs accept it — lender selection matters.
Expect 20-25% down for most investor loan programs. Higher down payments often unlock better rates.