Rental / DSCR in San Mateo

Mostly at the county's south end and in East Palo Alto, not in Menlo Park or Burlingame. As of July 2026, gross rental yields (annual rent divided by value) run from about 1.67 percent in Burlingame and 1.81 percent in Menlo Park up to 3.97 percent in South San Francisco and 4.25 percent in East Palo Alto. That spread exists because rents across the county cluster between roughly $3,300 and $4,350 a month while values range from about $1.0 million to $2.9 million: rent does not scale with price on the Peninsula the way it does in most markets. A DSCR pro forma written for one San Mateo County city rarely transfers to another, so run the specific address before you assume coverage.

From $100,000 to $3,000,000. The $100,000 floor is rarely the binding constraint here; the $3,000,000 ceiling is the one to watch, because a single-family purchase toward the top of the Menlo Park or Burlingame market, where mid-tier values run near $2.8 million to $2.9 million, sits close to that ceiling before leverage is even discussed. Credit starts at 640 and the qualifying income is the property's rent, not your tax returns. Send the address and the rent roll and we will tell you which structure fits. Subject to underwriting.

Because California resets the assessment to your purchase price the day you take title, not the day the seller bought. Under Proposition 13, the 1 percent general levy applies to an assessed value that resets on a change of ownership, then can rise at most 2 percent a year until the next sale. On top of that reset levy sit city and school bond debt and small special items, so composite rates across the eight cities we serve run a tight band, roughly 1.07 percent to 1.15 percent, with Foster City highest because every tax rate area there carries a city GO bond line. A $1,685,162 purchase in the City of San Mateo at the median rate bills about $18,876 in year one, well above what a long-held seller was paying on an unreset base. Expect a separate supplemental bill for the mid-year gap too: San Mateo County gives you only 60 days from the mailing date to appeal it, shorter than the regular assessment window. Talk to your CPA before you lock a pro forma to the seller's tax line.

In one city outright, and in a narrower way in three others. East Palo Alto is the county's only jurisdiction with a rent stabilization ordinance: an elected board sets an annual general adjustment and administers eviction protections against arbitrary, discriminatory, or retaliatory terminations, and it also happens to be the county's lowest-basis, highest-yield city. The City of San Mateo layered on its own just cause ordinance effective December 31, 2025, requiring just cause after 11 months of continuous occupancy (one month earlier than the statewide AB 1482 threshold) plus relocation assistance on a no-fault termination; it does not cap rent itself and is set to sunset in 2030 unless renewed. Redwood City adopted a separate tenant protection ordinance effective January 1, 2026 and has a rent stabilization measure on the November 3, 2026 ballot that would cap increases and roll rents back to an October 2025 baseline if voters approve it; until then it is a pending measure, not law. Menlo Park caps increases under the statewide AB 1482 formula and adds its own tenant relocation ordinance on top; for Burlingame, South San Francisco, San Bruno, Foster City, and Millbrae we found no local ordinance to cite either way, so treat AB 1482 as the baseline there. Confirm the ordinance for your specific address before underwriting a rent increase.

Plan on at least 20% of the purchase, plus closing costs, and more than the minimum in the county's higher-priced cities. We lend up to 80% LTV, so on a $1,235,804 South San Francisco purchase, the mid-tier value there as of July 2026, that is up to $988,643 from us and $247,161 from you (1,235,804 x 80% = 988,643). South San Francisco is also where the rent-to-value math starts strongest: at a roughly 3.97 percent gross yield it carries the highest gross yield of the eight cities we serve, which is the friendliest starting point for a 0.75 minimum DSCR test at that leverage. In Burlingame or Menlo Park, where gross yields run closer to 1.7 to 1.8 percent on a much higher basis, expect to bring more than the minimum down payment to reach the same coverage. Subject to underwriting.

Rarely, because the coverage math and the rulebook both change at the city line. A DSCR loan is underwritten property by property, and on this Peninsula the same rent supports very different leverage from one city to the next: gross yields as of July 2026 ran about 1.67 percent in Burlingame against 3.97 percent in South San Francisco. Property taxes move too, from roughly 1.07 percent of assessed value in South San Francisco to about 1.15 percent in parts of Foster City, and each purchase is reassessed to its own price rather than inheriting the seller's base. On top of that, an East Palo Alto address sits under rent stabilization, a City of San Mateo address under an 11-month just cause threshold, and a Redwood City address could sit under a rent cap if the November 2026 ballot measure passes. Send the new address and its rent roll and we will underwrite it on its own numbers. If you are financing five or more doors together, ask us about a portfolio loan instead.

A DSCR (debt service coverage ratio) loan qualifies on the property's rental income instead of your personal income, so there are no W-2s or tax returns required. We compare the rent, from a signed lease or the appraiser's market-rent estimate, against the monthly payment. A DSCR of 1.00 means the rent covers the payment, and we lend with a DSCR as low as 0.75.

Our rental program starts around 5.50% interest-only, with 30-year fixed and 5/7/10-year ARM options, for a single property or a whole portfolio. The lowest pricing goes to strong credit, lower leverage, and a DSCR above 1.20; your quote depends on the file and is subject to underwriting.

We finance up to 80% loan-to-value on a purchase, with rate-and-term and cash-out refinances available, on loan amounts from $100K to $3M. Cash-out leverage is typically a little lower than purchase. The property's cash flow and your credit set your final leverage.

We start at 640, and the best pricing goes to strong credit. Because the loan qualifies on the asset, your score affects your rate and leverage more than whether you are approved.

Yes, short-term rentals are considered. We can underwrite using market or projected rents, and the property still needs to meet our DSCR. Tell us how the property is operated so we can structure it correctly.

Long-term rental loans usually carry a prepayment penalty, commonly a step-down such as 5/4/3/2/1. We offer flexible prepay structures, including buying down to a shorter penalty for a slightly higher rate, and we will lay out the options on your term sheet.