In San Francisco, a $2M loan is not unusual; it is a well-located set of flats. The question on a jumbo file is whether the rent can carry the balance, and the answer depends heavily on what kind of property you buy.
In short: LendingStreet offers jumbo DSCR loans of about $1.5M to $5M+ on San Francisco rentals of 1 to 8 units, for purchase, rate-and-term and cash-out, qualified on the property's rent with no W-2s or tax returns. Larger balances get more review and maximum LTV can be lower; it varies by program. In San Francisco, multi-unit buildings usually qualify at higher leverage than luxury single-family homes, because rent per dollar of value is higher.
Large San Francisco DSCR loans cluster in Pacific Heights, Cow Hollow, the Marina, Presidio Heights, Russian Hill, Noe Valley and Cole Valley. The properties are typically three- and four-unit Edwardian flats with large floor plans, newer condo-quality buildings of 5-8 units, and single-family homes leased to executives and relocating families.
Each type behaves differently on a DSCR loan. A building of large flats spreads value over several rents. A luxury single-family home concentrates it in one lease, and high-end home rents rarely keep pace with prices.
This example is illustrative and not a quote. An investor compares a Cow Hollow fourplex at $4,000,000, with four large flats renting for a combined $26,000 a month, against a Noe Valley single-family home at $3,200,000 that leases for $12,500. Taxes are estimated on each purchase price.
The fourplex carries a $2,600,000 loan at 65% LTV with a ratio of 1.16x, and 1.32x at 55%. The house, even at 50% LTV, comes in at about 0.87x, below the 1.0x standard minimum. That gap is typical in San Francisco, and it is why many jumbo DSCR borrowers here buy buildings rather than single homes.
| Item | Cow Hollow fourplex, 65% | Cow Hollow fourplex, 55% | Noe Valley house, 50% |
|---|---|---|---|
| Purchase price | $4,000,000 | $4,000,000 | $3,200,000 |
| Loan amount | $2,600,000 | $2,200,000 | $1,600,000 |
| Estimated principal and interest | $17,298 | $14,637 | $10,645 |
| Taxes and insurance | $5,100 | $5,100 | $3,650 |
| Total monthly payment | $22,398 | $19,737 | $14,295 |
| Monthly rent | $26,000 | $26,000 | $12,500 |
| DSCR | 1.16x | 1.32x | 0.87x |
San Francisco's real property transfer tax rises by price tier, and the highest tiers apply to the largest sales. On a $3M to $5M purchase, it is one of the biggest closing costs, alongside the county's documentary transfer tax. Confirm current tiers with the Assessor-Recorder and settle in the contract who pays.
Prop 13 resets your assessed value to the purchase price, so the first full-year tax bill and the supplemental bill both belong in the ratio.
Above about $1.5M, expect a closer look at value, rent support and liquidity. Some programs require a second appraisal or a desk review on larger balances, and reserve requirements usually increase with the loan. Maximum LTV can step down as the balance grows; it varies by program.
High-end homes with unusual layouts, view premiums or few comparable leases can be harder to support. Recent signed leases on similar properties are the best evidence. Corporate relocation leases and furnished executive rentals of 30 days or more can also help show what the market pays, as long as they are documented.
Liquidity is reviewed more closely too. Statements showing the down payment, closing costs and reserves should be ready when you apply.
Being expensive does not exempt a building from the Rent Ordinance. A pre-1979 fourplex in Pacific Heights is covered just like one in the Mission, and a tenant who moved in years ago may pay well below today's rents. We qualify on in-place leases, so review move-in dates before you price the building.
Single-family homes and condos are generally exempt from the increase limits, which lets owners reset rent at turnover, but other tenant protections can still apply.
Ask the seller for each tenant's move-in date and rent before you write an offer. On a $4M building, one long-term tenant paying a regulated rent can change the loan amount by hundreds of thousands of dollars.
Long-held San Francisco owners often have low Prop 13 tax bases and substantial equity. A jumbo cash-out up to 75% LTV, subject to the ratio and program limits, can fund the next acquisition without a sale. A refinance does not reset the tax base, but moving title into an LLC can; check before you retitle.
If you own several Bay Area rentals, a blanket portfolio loan can combine five or more properties into one loan with one closing and one payment, qualified on combined cash flow. That can let a strong building carry a thinner one.
Portfolio loans include release provisions for selling a property later, and some programs allow properties in more than one state. That can suit San Francisco investors who have added rentals in other markets.
Replacement cost on a large Edwardian building is high, and insurers look closely at roofs, wiring, plumbing and seismic work. Earthquake coverage is usually a separate policy with a large deductible, and its premium on a multi-million-dollar building is a real number in the ratio.
Ask for the building's permit history and any retrofit sign-offs before you finalize price. A property that is hard to insure is hard to finance, regardless of balance.
Send the address, price or value, rent roll and target leverage through the form below or call (877) 298-1001. We will run the ratio at several loan amounts and explain what the larger balance requires. See our Bay Area and California jumbo pages for regional terms.
Generally about $1.5M to $5M+ on 1-8 unit rentals. Larger balances get more review and maximum LTV can be lower.
High-end home rents are low relative to price, so the payment outruns the rent. Lower leverage or a multi-unit property usually works better.
Our DSCR programs have no stated maximum. Very large balances are reviewed and priced case by case.
Some programs require a second appraisal or review on larger balances. We will tell you up front.
If the building has two or more units and predates June 1979, generally yes. Price matters less than age and unit count.
Yes, up to 75% LTV subject to the DSCR test and program limits. Your Prop 13 base stays in place on a refinance.
No. The city does not allow non-owner-occupied short-term rentals, so we underwrite on long-term leases.
Yes. LLC borrowers are standard, and you sign for the loan personally. Our investor loans are business-purpose loans on non-owner-occupied property.
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