Question 1

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

Accepted Answer

DSCR loans are designed exclusively for investment properties that generate rental income. You'll need a conventional loan for a primary residence purchase.

Question 2

Which loan type offers lower interest rates?

Accepted Answer

Rates vary by borrower profile and market conditions. Conventional loans typically offer lower rates for qualified borrowers compared to DSCR financing.

Question 3

Do I need to show tax returns for a DSCR loan?

Accepted Answer

DSCR loans don't require personal tax returns or income verification. Lenders focus on the property's rental income and your credit score instead.

Question 4

What credit score do I need for each loan type?

Accepted Answer

Conventional loans typically require 620 minimum, with better rates above 740. DSCR loans usually need 660-680 minimum for approval.

Question 5

Can I convert a conventional loan to DSCR later?

Accepted Answer

You can refinance from conventional to DSCR when the property becomes a rental. The reverse works too if you meet conventional qualifying standards.

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