In San Jose, a $1.5M loan is common on a well-located rental. Whether the rent can carry it depends far more on the number of units than on the neighborhood's prestige.
In short: LendingStreet offers jumbo DSCR loans of about $1.5M to $5M+ on San Jose 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 Jose, small multi-unit buildings usually qualify at jumbo balances more easily than luxury single-family homes.
Jumbo DSCR balances in San Jose cluster in Willow Glen, the Rose Garden, Naglee Park, Almaden Valley, Silver Creek and Evergreen's hillside neighborhoods, plus nearby Los Gatos, Saratoga and Cupertino. The properties range from duplexes and fourplexes on large Willow Glen lots to executive homes leased to relocating tech employees.
On a DSCR loan, those two types behave very differently. A fourplex spreads value over four rents. A luxury home relies on one tenant, and executive rents in Silicon Valley rarely keep up with home prices.
Large Willow Glen lots are part of the appeal. Many older duplexes and fourplexes there sit on deep parcels near Lincoln Avenue with room for an ADU, which can add a rent over time. Hillside homes in Almaden and Silver Creek offer views and space but come with steeper insurance questions in fire-prone areas.
This example is illustrative and not a quote. An investor compares a Willow Glen fourplex at $2,750,000, with four units renting for a combined $14,800, against an Almaden Valley home at $2,400,000 that would lease for $8,800. Taxes are estimated on each purchase price.
The fourplex supports a $1,650,000 loan at 60% LTV with a ratio of 1.03x, and 1.10x at 55%. The Almaden home, with a $1,500,000 loan at about 62% LTV, runs near 0.69x, far below the 1.0x standard minimum. That gap is why most San Jose jumbo DSCR borrowers buy multi-unit properties, or bring very large down payments on single homes.
| Item | Willow Glen fourplex, 60% | Willow Glen fourplex, 55% | Almaden Valley house |
|---|---|---|---|
| Price | $2,750,000 | $2,750,000 | $2,400,000 |
| Loan amount | $1,650,000 | $1,512,500 | $1,500,000 |
| Estimated principal and interest | $10,977 | $10,063 | $9,980 |
| Taxes and insurance | $3,400 | $3,400 | $2,800 |
| Total monthly payment | $14,377 | $13,463 | $12,780 |
| Monthly rent | $14,800 | $14,800 | $8,800 |
| DSCR | 1.03x | 1.10x | 0.69x |
San Jose's Measure E transfer tax applies to sales at or above about $2M, with higher tiers above that, on top of Santa Clara County's documentary transfer tax. Most jumbo purchases in the city cross the first threshold, so the city tax is a real closing cost. Confirm current tiers and who pays before you finalize your offer.
Under Prop 13, your purchase resets the assessed value, so the first full-year tax bill and the supplemental bill belong in the ratio.
Because the city tax is tiered, a price just above a threshold can cost noticeably more than one just below it. Your agent and title company can confirm the exact figure for your price.
Above about $1.5M, expect closer review of value, rent support and liquidity. Some programs require a second appraisal or a review, reserve requirements rise with the loan and maximum LTV can step down as the balance grows; it varies by program.
Have statements ready showing the down payment, closing costs including transfer taxes, and reserves. On large purchases, the source of funds is reviewed carefully.
Price does not exempt a building from San Jose's Apartment Rent Ordinance. A fourplex built before late 1979 is generally covered, with a 5% annual cap on increases, just like a smaller building elsewhere in the city. Review move-in dates and current rents before you price it. Duplexes and single-family homes are generally outside the ordinance, though state rules may apply.
Executive homes in Almaden, Willow Glen and Silver Creek often lease to relocating employees, sometimes through corporate housing arrangements. Leases of 30 days or more with documented terms can support rent. Furnished rentals and corporate leases should be backed by signed agreements, not projections.
Hiring cycles in the tech sector can move high-end rents more than rents on ordinary units. Underwrite on current, signed leases and keep reserves for a longer vacancy between executive tenants, which can take more time to fill than a typical two-bedroom apartment.
Long-held San Jose owners often have large equity and low Prop 13 tax bases. A jumbo cash-out up to 75% LTV, subject to the ratio and program limits, can fund the next purchase. A refinance does not reassess the property, but moving title into an LLC can; check first. If you own five or more rentals, a blanket portfolio loan can combine them with one closing and one payment.
If an executive home is the goal, there are still paths. A much larger down payment brings the payment in line with the rent. A sub-1.0 DSCR program can accept a ratio below 1.0x with stronger reserves and lower leverage. A property with a permitted ADU or a guest house adds a second rent that can change the math.
Another approach is a cash-out or rate-and-term refinance on a home you have owned for years. A low Prop 13 tax base reduces the monthly payment, which can make a large balance qualify where a new purchase at today's assessed value would not.
We will model each option with real numbers so you can decide which one fits your plan.
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.
About $1.5M to $5M+ on a 1-8 unit rental. Larger balances get more review and maximum LTV can be lower.
Rents are low relative to price, so a large payment outruns the rent. Multi-unit properties or larger down payments help.
Generally, if the San Jose property sells for about $2M or more. Confirm current tiers with the city.
Our DSCR programs have no stated maximum. Very large balances are reviewed case by case.
Some programs require one on larger balances. We will tell you up front.
If it was built before late 1979, generally yes, under the Apartment Rent Ordinance.
Yes. LLC borrowers are standard, and you sign for the loan personally.
Sometimes. Sub-1.0 programs exist, typically with lower leverage and more reserves. Availability on large balances varies by program.
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