Question 1

Can I use a DSCR loan for my primary residence in Atherton?

Accepted Answer

No, DSCR loans work only for investment properties. You must use conventional financing or other loan types for primary residences or second homes.

Question 2

Which loan type offers better rates in San Mateo County?

Accepted Answer

Conventional loans typically offer lower rates for qualified borrowers. DSCR loans carry higher rates but provide easier qualification for investors. Rates vary by borrower profile and market conditions.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

DSCR loans don't require personal tax returns for income qualification. Lenders focus on the property's rental income and may request a lease agreement or rent schedule instead.

Question 4

Can I convert a DSCR loan to conventional later?

Accepted Answer

Yes, you can refinance from DSCR to conventional financing once you meet conventional qualification requirements. This strategy helps investors secure lower rates after establishing the property.

Question 5

What credit score do I need for each loan type?

Accepted Answer

Conventional loans typically require 620 or higher. DSCR loans often accept scores around 660-680. Higher scores improve your rates and terms for both loan types.

Conventional vs DSCR Loans in Atherton: Choose the Right Financing for Your Property