Question 1

Can I use a DSCR loan to buy a home I'll live in?

Accepted Answer

No, DSCR loans exclusively finance rental investment properties. You must use a conventional loan or other owner-occupied product for a Colma primary residence or second home.

Question 2

Which loan requires less documentation?

Accepted Answer

DSCR loans require significantly less documentation since they skip tax returns and pay stubs. Conventional loans need full income verification, employment history, and detailed financial records.

Question 3

Do DSCR loans always have higher interest rates?

Accepted Answer

Generally yes, because DSCR loans fall into the non-QM category with different risk profiles. Rates vary by borrower profile and market conditions, but expect higher costs than conventional financing.

Question 4

Can I finance multiple Colma properties with one loan type?

Accepted Answer

Conventional loans limit you to 4-10 financed properties depending on the lender. DSCR loans often allow unlimited investment properties, making them better for portfolio growth.

Question 5

Which loan closes faster in San Mateo County?

Accepted Answer

DSCR loans typically close faster due to reduced documentation requirements. Without income verification delays, many DSCR transactions complete in 21-30 days versus 30-45 for conventional loans.

Conventional vs DSCR Loans in Colma: Which Financing Path Fits Your Property Goals?