Question 1

Can I qualify for a DSCR loan without showing W-2 income?

Accepted Answer

Yes. DSCR loans qualify entirely on the property's rental income. You don't need to verify employment or provide tax returns. The property's net operating income must meet the lender's debt service coverage ratio.

Question 2

What down payment do I need for a DSCR loan in San Jose?

Accepted Answer

Single-family rentals require 20% down. Multi-unit buildings (2–4 units) typically require 25% down. Some lenders offer 15% down on strong cash-flowing properties, but 20–25% is standard.

Question 3

How fast can I close on a DSCR loan?

Accepted Answer

DSCR loans typically close in 30–45 days. Underwriting is faster than conventional because the lender only reviews rent rolls and property appraisals, not employment history or tax returns.

Question 4

Are DSCR rates higher than conventional investment loans?

Accepted Answer

Yes, typically 0.5–1.0% higher. The premium reflects the lender's reliance on property income rather than personal employment. For investors buying multiple properties, the speed and flexibility often justify the higher rate.

Question 5

Can I use DSCR to buy a property above the conforming limit?

Accepted Answer

Yes. DSCR loans go up to jumbo amounts. Properties above $1,249,125 require jumbo financing regardless of the loan type. DSCR's advantage is that you don't need personal income to qualify.

DSCR Loans in San Jose: Investment Property Financing for Real Estate Investors