Question 1

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

Accepted Answer

No, DSCR loans are exclusively for investment properties. If you're buying a primary residence in Belmont, you'll need conventional, FHA, or another owner-occupied loan type.

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 have slightly higher rates due to their flexible qualification approach. Rates vary by borrower profile and market conditions.

Question 3

Do I need perfect credit for either loan option?

Accepted Answer

Neither requires perfect credit, but conventional loans are more credit-sensitive. DSCR loans may accept lower scores since they focus on property income rather than borrower profile.

Question 4

How much rental income do I need for a DSCR loan?

Accepted Answer

The rental income should cover or exceed your mortgage payment. Most lenders want a DSCR of 1.0 or higher, meaning rent equals or beats the total housing payment.

Question 5

Can I switch from conventional to DSCR if I convert my Belmont home to a rental?

Accepted Answer

You would refinance into a DSCR loan once the property becomes an investment rental. The refinance process evaluates the rental income just like a purchase transaction would.

Conventional vs DSCR Loans in Belmont: Which Fits Your Investment Strategy?