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in Santa Clara, CA
Santa Clara sits in one of the most expensive real estate markets in the country. Choosing the right loan structure matters more here than almost anywhere else.
Conventional loans work for primary home buyers with strong W-2 income. DSCR loans are built for investors who want to qualify on rental income instead.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. They offer competitive rates and flexible terms for borrowers with solid credit and documented income.
You'll need at least a 620 credit score. Most lenders want to see two years of W-2s or tax returns to verify what you earn.
DSCR loans qualify you based on the property's rental income — not your tax returns. That makes them a strong tool for self-employed investors and LLCs.
Lenders look at one number: does the rent cover the mortgage payment? A DSCR of 1.0 or higher typically gets you approved. Rates vary by borrower profile and market conditions.
HousingWire flagged the 30-year fixed hitting 6.57% recently — that spread matters when comparing conventional and DSCR pricing. DSCR loans typically run 1–2 points higher in rate.
Conventional loans cap out at conforming limits for Santa Clara County. DSCR loans can go jumbo without the income documentation that jumbo conventional lenders demand.
Buying a primary residence with a steady paycheck? Conventional is almost always the better call. Lower rate, lower down payment options, and easier long-term refinancing.
Buying a rental in Santa Clara and want to close in your LLC without showing tax returns? DSCR was built for that. It's the go-to for scaling a portfolio fast.
No. DSCR loans are investment property only. They're not eligible for owner-occupied homes.
Most DSCR lenders require a 680 minimum. Higher scores get better pricing.
Expect 20–25% down on most DSCR programs. Some lenders go up to 30% for short-term rentals.
Yes, but with limits. Lenders typically count 75% of documented rental income after expenses.
Yes. Most DSCR lenders allow LLC vesting. Conventional loans almost never permit this.
DSCR loans often close faster. Less income documentation means fewer conditions to clear.