Question 1

Can I use DSCR for my Hillsborough primary residence?

Accepted Answer

No. DSCR loans only finance investment properties. You need conventional or another owner-occupied program for primary homes.

Question 2

What DSCR ratio do I need in Hillsborough?

Accepted Answer

Most lenders require 1.0 minimum, meaning rent covers the payment. Ratios of 1.25 or higher unlock better rates.

Question 3

Do DSCR loans work for luxury Hillsborough properties?

Accepted Answer

Yes. DSCR programs have no loan limits, making them ideal for high-value rentals. Conventional loans cap at $806,500 in San Mateo County.

Question 4

Which loan closes faster in Hillsborough?

Accepted Answer

DSCR loans often close quicker. No income verification means less documentation and fewer underwriting delays.

Question 5

Can I refinance from conventional to DSCR?

Accepted Answer

Yes. Many investors refinance rental properties into DSCR loans to free up conventional capacity for new purchases.

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