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San Jose's real estate market is heating up as tech companies expand their footprint across Silicon Valley. OpenAI's 450,000-square-foot Mountain View lease signals continued demand for office space and worker housing.
DSCR loans let investors qualify based on the property's rental income, not their personal income. This matters in San Jose, where purchase prices often exceed what a W-2 income alone can support.
620 FICO
Minimum Credit Score
20–25%
Down Payment Range
30–45 days
Typical Closing
$1,249,125
2026 Conforming Limit
DSCR Loans in San Jose
DSCR loans require a 620 FICO minimum, though 660+ gets better rates. Down payments start at 20% for single-unit rentals and go up to 25% for multi-unit buildings.
Santa Clara County's $159,674 median household income doesn't matter for DSCR qualification. What matters is the rental income on the property itself.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in San Jose.
San Jose's real estate market is heating up as tech companies expand their footprint across Silicon Valley. OpenAI's 450,000-square-foot Mountain View lease signals continued demand for office space and worker housing.
DSCR loans let investors qualify based on the property's rental income, not their personal income. This matters in San Jose, where purchase prices often exceed what a W-2 income alone can support.
DSCR loans require a 620 FICO minimum, though 660+ gets better rates. Down payments start at 20% for single-unit rentals and go up to 25% for multi-unit buildings.
DSCR lending in California is dominated by portfolio lenders and private banks. Fannie Mae and Freddie Mac don't offer DSCR products, so you won't find them at traditional retail banks.
Closing timelines run 30–45 days for DSCR loans. Underwriting is faster than conventional because there's no personal income to verify — just rent rolls, leases, and property appraisals.
DSCR makes sense in San Jose when you own multiple rentals and want to keep buying without waiting for W-2 income to catch up. If you're buying a single-family rental and have solid employment income, conventional financing often pencils better.
The 2026 conforming limit for San Jose is $1,249,125. Investors buying above that number need jumbo financing anyway, so DSCR's rate premium becomes less relevant. Below that limit, DSCR is a tool for investors who've outgrown traditional lending.
Conventional investment loans require 20–25% down and full W-2 documentation. DSCR also requires 20–25% down but ignores your W-2 entirely. If you have strong rental income but irregular employment, DSCR wins.
The real tradeoff is speed versus cost. Conventional underwriting takes longer because it verifies your employment and tax returns. DSCR moves faster because it only needs the property's rent rolls and appraisal.
OpenAI's 450,000-square-foot Mountain View lease expansion signals sustained demand for tech worker housing. San Jose investors are seeing strong rental demand from engineers and product managers relocating to the area.
The Silicon Valley Lunar New Year celebration drew over 200 vendors and thousands of attendees. This kind of foot traffic supports commercial and mixed-use investment properties.
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.
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.
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.
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.
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.