Question 1

Can I use a DSCR loan for an East Palo Alto primary residence?

Accepted Answer

No. DSCR loans fund investment properties only. You need conventional, FHA, or another owner-occupied product for a primary home.

Question 2

What DSCR ratio do I need in San Mateo County?

Accepted Answer

Most lenders require 1.0 or higher. Monthly rent must cover the full mortgage payment including taxes and insurance.

Question 3

Do DSCR loans have prepayment penalties?

Accepted Answer

Many do. Conventional loans rarely carry prepayment penalties. Review loan terms before closing.

Question 4

Can I refinance from DSCR to conventional later?

Accepted Answer

Yes, if you meet conventional income and credit requirements. Refinancing saves money if your income profile improves.

Question 5

Which loan closes faster in East Palo Alto?

Accepted Answer

DSCR loans often close in 21 days. Conventional takes 30-45 days due to income verification steps.

Conventional vs DSCR Loans in East Palo Alto: Which Fits Your Investment Strategy?