Question 1

San Jose is the most expensive housing metro in the country. Does that rule out conventional investor financing here?

Accepted Answer

It narrows where conventional cleanly fits more than it rules it out. Zillow put the San Jose metro's mid-tier single-family value at $1,709,383 in July 2026, the highest of 895 metros in its file, ahead of San Francisco at $1,228,529. A purchase at or near that number is far more likely to sit above conforming and above high-balance investor product than a purchase in most of the other metros we lend in, so agency financing covers a smaller share of this market than it does elsewhere. Send us the address and purchase price and we will tell you plainly whether the file fits a conventional loan or is better suited to DSCR or one of our other programs.

Question 2

Where in Santa Clara County does a conventional-shaped deal actually fit the price band?

Accepted Answer

Gilroy and Morgan Hill, more than the rest of the county. Gilroy's mid-tier home value was $1,052,956 in July 2026 and Morgan Hill's was $1,332,347, both well under the county's ultra-prime tier, where Los Altos runs $4,601,729 and Saratoga $4,038,070. A purchase at the Gilroy or Morgan Hill price point is the deal most likely to size inside standard conventional investor terms in this county; a purchase in Los Gatos, Cupertino, Palo Alto, Saratoga, or Los Altos is much less likely to.

Question 3

Gross rental yields here run under 4% almost everywhere. When does conventional actually beat DSCR in this market?

Accepted Answer

When your own documented income carries the file, because the property's rent usually cannot. No city in Santa Clara County produces a gross yield above 3.73%, the figure for Gilroy, and San Jose itself runs 3.04%, against rents that rose 6% to 9% year over year in July 2026 while values sat roughly flat. DSCR pricing is built around the property's own cash flow clearing a coverage ratio, and at these yields that usually calls for a large down payment. Conventional financing qualifies on your documented income rather than the rent roll, so a lower-yield San Jose, Santa Clara, or Sunnyvale purchase can still close conventionally if your income file supports it. Compare it against our DSCR program before you pick a structure.

Question 4

What does 20% down actually cost on a San Jose-area conventional purchase?

Accepted Answer

Six figures, even in the two cities where conventional fits best. Max leverage is up to 80% LTV. On a purchase at Gilroy's mid-tier value of $1,052,956, call it $1,050,000, that is $840,000 from us and $210,000 from you (1,050,000 x 80% = 840,000). At Morgan Hill's $1,332,347 the same 20% runs about $266,000 (1,332,347 x 20% = 266,469). Those are the Santa Clara County cities where a conventional-shaped deal most often fits the price band, and they still ask for a down payment most metros would call a purchase price. Subject to underwriting.

Question 5

Credit starts at 580. Does that mean a 580 file closes in San Jose?

Accepted Answer

580 is the floor on this program, but on conventional the documentation is the real gate. Conventional investment financing is fully documented, so your income has to prove out on paper, which is the opposite of how our asset-based programs work. A thin score also tends to be offset with lower leverage rather than a decline, and at San Jose-area price points less leverage means a much larger check. If the documentation is the problem rather than the score, a bank statement structure is usually the better fit. Subject to underwriting.

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